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TIGSource ForumsDeveloperBusinessCrowd-funding and the corporate segment
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Colorcoder
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« on: October 16, 2012, 10:02:30 AM »

(Post was originally written for danish readers, but the content applies for all countries)

How can the Danish business and its operators in particular, both support the beleaguered gaming industry in Denmark, while exploiting new media to draw attention to themselves.

Of course there are many opinions and suggestions for this problem, and my contribution to this question is not of an ambitious character that tries to solve all the problems in one fell swoop. However, I think I have found a partial solution that can benefit both parties;



Background
The Games Industry has the last few years undergone a major paradigm shift, not only after the introduction of smartphones and tablets, but mainly because of development tools that have made it possible for ordinary people to develop games for all platforms.

Computer Production is no longer reserved for large software houses, but is increasingly carried out by small groups or even individuals.

This has of course led to a veritable explosion of game titles for all platforms - the problem is that most of these, regardless of quality, disappears in the crowd due to the lack of marketing, the big software houses alone can afford.

The unfortunate thing is that in Denmark we end up with many small teams of game developers whose titles do not get the attention they deserve from the outside world - and therefore must close down.



Questions
How can the independent Danish game developers raise the capital needed to market their products - even without selling their soul to the bank?

How can businesses better exploit this new-media channel, that we are all running around with in our pockets and bags.



The answer
The word crowd-funding is not an unfamiliar concept for the independent game developers, but the low success rate for these campaigns often makes it an unattractive solution. However, I believe that the low success rate is caused by omitting a large segment .. companies.

Normally campaigns target individuals primarily, whom in exchange for varying donations receive similar benefits from the games developers ... everything from cheat codes, and exclusive releases, t-shirts and posters, or even a role in the game's design or history. The more money an individual donates to the game, the greater the benefits he or she receives.

Why not include a sponsoring tier companies would find attractive? Users of today's mobile games have grown accustomed to in-game advertisements, so why not offer the time it takes the game to load, as an advertising space - where businesses can expose their brand, vision, and web address?

Why not offer sponsoring companies branding privileges?



The conclusion
It seems that game developers crowdfunding campaigns generally focus on B2C, but fails by overlooking the moneyed segment... B2B

Of course, a company won’t sponsor more than DKK 20,000 in a game that can not predict how many users it will have, and thus how exposed the sponsor's brand will become. But if the developer provides room for more than one sponsor, for example, one for each country, the developer can reduce the price for this service drastically.

In addition to the potential sponsor, sees a significantly lower risk of posting 1/10th of the amount in a game project (the amount can be deducted from tax, and if the game is great, they have purchased a golden egg), so businesses can target exposure of their brand through the game, to relevant countries.

In any case, I see untapped opportunities and resources in both camps, which potentially could strengthen all parties involved.



Nota Bene
This post will be posted in both business forums and game development forums in Denmark. My hope is that it will either open some eyes in both camps, or at least start a discussion that ultimately results in fruitful relations across industries.
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KununguaK Iversen
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« Reply #1 on: October 19, 2012, 09:39:37 AM »

The problem with crowdfunding is that it's really just a fad. I think we'll see a lot less interest in it in the future when people start to realize that projects require more than just money to function and we start seeing funded kickstarter projects dropping like flies due to infighting or developer incompetence.
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Karstein
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« Reply #2 on: October 21, 2012, 01:04:55 PM »

Hello fellow Scandinavian!

If i understand you correctly, you are saying that by including an ad in your game, sponsors will be attracted?

Some immediate problems i think of is that these companies will look at how many who are actually going to see the ad, and since your game isn't even out yet, this is hard to estimate. Why would they spend money on your uncertain game, when they can spend money on a title already being made by a big company? Or spend the money on ads on big websites, or other marketing strategies?

I think the reason why crowd-funding actually works is by reaching out to individuals. They feel connected to the project. A company will weigh it with other marketing solutions, and will probably find them more viable.
« Last Edit: March 14, 2013, 09:35:03 AM by Karstein » Logged

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