Game industry Part 3- Egypt Suggested Proposed Strategy 2009

Future of Egypt Gaming Industry
November 2009

NextGen Gaming Industry
Suggested Strategy
Outline

Prepared By:
Al-Motaz Bellah Alaa Al-Agamawi

Future of Egypt Game Industry Strategy Outline By: Motaz Al-Agamawi

Table of Content
2

Defining NextGen Games
International Market Overview
Production Overview
Main Milestones
Team Overview
Game Marketing Overview
Typical Game Development Budgeting
Suggested Strategy and Mechanism
Expected ROI
International Game Samples
Egyptian Game Sample


3

Defining NextGen Game
•Overview
•Genres
•Platform
•Rating


Defining NextGen Games…Overview
4

We will define the target game types by…
Genres
Platform
Rating


Defining NextGen Games… Genres
5

Action Strategy
First-Person Shooters War
Second-Person Shooters Real Time
Economic/Political
Third-Person Shooters
Simulation
Adventure
Vehicles
Graphical Land vehicle
Action- Adventure Air Vehicle
Role-Playing Water Vehicle
Horror Sports
Super Heroes Professional Team
Pirates Individual

Source: Game Design and Development, By Michael Moore, Pearson, 2007

Defining NextGen Games… Platforms
6

Console game
Play station
Xbox
Wii
Massively multiplayer online game
Personal computer game


Defining NextGen Games… Rating
7

Source: http://www.esrb.org/ratings/ratings_guide.jsp

Defining NextGen Games… Rating
8

Source: http://www.esrb.org/ratings/ratings_guide.jsp

9

International Market Overview


International Market Size & Growth …

Sales of Entertainment Software, Industry Growth Rate, Global
Global Market, Bil US$ Market
15%
31.12
26.19 27.05
11%
20.63 22.22 23.58
8%
6%
3%

2001 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006


International Market Distribution

Global Market Share in 2005 Latin Global Market Share in 2010
America Latin
Canada (Projected)
Canada 2.0%
Asia America
2.7% 2.8% USA
Pacific 1.8%
USA 27.9%
36.1%
31.2%

EMEA EMEA
28.0% 30.0%
Asia
Pacific
37.5%


Market Growth During the Financial Crisis


Gamers Age and Gender …


At Play! … Video Games


At Play! … Computer Games


At Play! … Internet Games


Sales! … Video Vs Computer Games


Sales! … Rating


Supply Chain…
19

Publisher Pays to developer a down payment
Publisher Pays to developer a royalty fee about
15% per copy Direct revenue.
Assuming customer price 50 USD
the developer takes 15% from 32.5 USD
Apprx. 5 USD per copy
About 35% of price goes to resellers and
distributors. About 17.5 USD from the 50 USD
Publisher main Cost items includes…
Overhead expenses, packaging (4 to 6$),
sales commission, inventory, marketing cost about
5$
Publisher Share goes down to an average of 11$

20

Production
• Overview
• Team Structure
• Main Milestones


Production…Overview
21

Preproduction

Production

Postproduction


22

Preproduction:

• Design Specification: Pitch Paper and Design Proposal
• Game Design Document
• Technical Review
• Selecting Game Engine (Middleware)


23

Production:

• Interactive Prototype
• Designer Tools (Map Editor, Scripting Language, …)
• User Interface
• Balancing Game Play
• Debugging
• Marketing


24

Postproduction:

• Marketing and distribution of Game


25

Main Milestones
• Overview
• Milestones Description
• Estimated Timeframe for Game Development


Main Milestones…Overview
26

1 • Game Design Document- GDD
2 • Technical Review
3 • Engine Proof
4 • Playable
5 • Interim Checkpoint
6 • Alpha
7 • Interim Checkpoint
8 • Beta
9 • Golden Master

Main Milestones… 1- Game Design Document- GDD
27

Game Design Document:

• Timeframe: 3 to 6 Month • Management
Either
Dependency Approve or
Cancel

Phase Output/ Deliverables

Art Complete Updated Summary of Secondary
GDD Specification Content Schedule Marketing Products
Design Doc Assets List and Budget Opportunity Based on
Design


Main Milestones… 2- Technical Review
28

Technical Review:

• Timeframe: 2 to 3 Month • Approval of
GDD
Dependency • Management
Either
Approve or
Cancel


Formal Final
Technical Design Doc Production Milestone List of Needed Development Technology
timeline Schedule and Resources Budget Demo Code
Checklist


Main Milestones… 3- Engine Proof
29

Engine Proof:
• Approval
• Timeframe: 3 to 9 Month of TR
Dependency • Interactive
Prototype
is Up and
running
One or More Demo Programs
of the Technology including Sample Art for review
Movement and Combat

Main Milestones… 4- First Playable
30

First Playable:

• Timeframe: 3 to 12 Month
Approval
Dependency of Engine
Proof

Sample of Game Art
Working Version of the Game Including all the although engine Associate Doc to Updated Schedule
with at least one entire level major activities might not be able to Support Version and Budget based
handle animation on current status
and effects


Main Milestones… 5- Interim Checkpoint
31

Interim Checkpoint:

• Between First Play and Alpha
• Frequency: Once a Month


Monthly version including main Documentation showing
game play to be completed status and explaining
and showable all changes from
previous version

Main Milestones… 6- Alpha
32

Alpha:

• Timeframe: 3 to 9 Month
• Starting from end of First play
• Definition of Alpha: Feature Complete

All Major Game play are May contain a Shell Interface
coded, player can play considerable will be probably
from start to finish amount of missing
placeholders art

Main Milestones… 7- Interim Checkpoint
33

Interim Checkpoint:

• Between Alpha and Beta
• Frequency: Once a Month
Testing
• Time between Alpha and Beta is the Longest in
production
Starts
Dependency for
Game
Phase Output/ Deliverables Play

All Art work is Levels are Audio is Final Code
completed completed Added Modules are
Completed


Main Milestones… 8- Beta
34

Beta

• Timeframe: from 3 to 6
Game
• Game is finished and ready to be shipped
except for tuning and final testing Dependency
Ready
to
Market
Attempt to remove as many
Priorities all reaming Bugs as possible bugs especially
ones that cause crashes or
violate SW standard

Main Milestones… 9- Golden Master
35

Golden Master

• Turning the Golden Master Version for
Final Disk for final Verification and
Approval
• When Golden Master is Accepted the
Production Cycle Ends


Main Milestones… Estimate Timeframes for Games
36

Phase Highly Avg. Min
Sophisticated Sophisticated Sophisticated
GDD 6 4.5 3
TR 3 2.5 2
Engine Proof 9 6 3
First Playable 12 7.5 3
Alpha 9 6 3
Beta 6 4.5 3
Total Req. Time 45 Month 29 Month 17 Month
Approx. Time 4 Years 2.5 Years 1.5 Year


37

Team Overview
• Organization Structure
• Team Structure
• Main Players
• Allocation Over Milestones


Production…Team Structure Overview
38


39


40

Producer: Has a working experience between 15 to 25 years in game industry.
Shipped Multiple titles. Act as the new company’s management.
Designer: Designed min of 3 shipped titles. One was a smash success and the
other two were respectable hits.
Lear Programmer: Has a working experience of more than 8 years in the game
industry. Has shipped multiple titles.
Senior Programmer/Tools: Has a working experience of more than 8 years in
the game industry on many different tools for designer and artist.
Senior Programmer/Engine: Has a working experience of more than 7 years in
the game industry with experience in building game engines and using middleware.


41

Lead Artist: Worked as a creative director at last position. Shipped a minimum
of 6 tiles with an experience not less than 11 years.
3D Modeling Artist: Has a working experience of more than 7 years in the
game industry and a minimum of three shipped titles. Must Master 3D studio.
3D Texture Artist: The most junior group member with an experience not less
than 5 years and a minimum of two shipped titles.


42

Producer Music
Designer Lead test
Asst Designer Inhouse Testers
Lead Programmer Temp Testers
Programmer/Tools
Programmer/Engine
Programmer/Network
programmer/ Audio
Lead Artist
Artist/3D Modeling
Artist/Animation
Artist/3D texture
Artist/Interface

Team Overview…Allocation Over Milestones
43

If we considered a minimum sophisticated Game, Milestones will be as follows:

• Pre-Alpha
6 Months • GDD, Technical Review, Engine Proof, First Playable

• Alpha
9 Months • 9 Interims Checkpoints will be produced

• Beta
2 Months

• Golden master
1 Month


Team Overview…Allocation Over Milestones
44

If we considered a 1st 6 Months 2nd 6 Month 3rd 6 Month
minimum sophisticated Producer 1 1 1
Game, Resource Designer 1 1 1
allocation will be as Asst. Designer 1 1 1
follows, over 18 Lead Programmer 1 1 1
Months: Programmer 4 6 6
Lear Artist 1 1 1
Artist 7 15 15
Music 1 1
Lead Test 1 1
In-house Tester 3
Part-time Tester 4
Total 16 28 35

45

Typical Game Development Budgeting
• US/EU Assumptions General
• Budget for US/EU
• Egypt Assumptions General
• Budget for Egypt
• Comparison Between Egypt and US/EU


Typical Game Budget… Assumptions for US/EU-- General
46

The coming assumptions are for a minimum sophisticated game production.
Budgeting is for production cost only without any other expenses.
Depreciation and other accounting norms are not calculated.
Plan is over 18 Months, and divided by quarters.
Resources and Resource allocation are based on info mentioned in previous sections.
25% benefits are calculated from the total salaries to cover uncalculated items.
Assuming Rent as 35,000 USD per month for 2000 square foot space.
Two desk, a chair, a lamp, telephone, a whiteboard, bookshelf for each team
member. A cost of 500 USD per team member is calculated.
3000 USD per team member computer and infrastructure share in included.
1500 USD for SW license per producer, designer and testers
3000 USD for SW license per programmers
7000 USD for SW license per Art professional

Typical Game Budget … Assumptions for US/EU-- General
47

Different Team Functions and Ranks
Salaries in USD


Typical Game Budget … Budget for US/EU
48

# Staff over 1.5 Year
Total Salaries


Typical Game Budget … Budget for US/EU
49

A Minimum Sophisticated Game
production cost in US/EU is
3,711,750 USD


Typical Game Budget … Assumptions for Egypt-- General
50

Assuming an
Average of 39%
of the US/EU
Salaries
Rent is calculated
as 8000 USD per
month


Typical Game Budget … Budget for Egypt
51


Typical Game Budget … Budget for Egypt
52

A Minimum Sophisticated Game
production cost in Egypt is
1,255,725 USD


Typical Game Budget … Comparing Egypt to US/EU Cost
53


Typical Game Budget … Comparing Egypt to US/EU Cost
54


55

Egypt
Suggested Strategy & Mechanism
• Ecosystem overview
• SWOT
• Idea
• Mechanism
• Expenses

Suggested Strategy & Mechanism… SWOT
56

Strength Weakness
• Competitive labor cost • Lake of gaming knowhow
• Competitive operational expense • Rare technical resources
• Wealth of ME cultural content (Pharos) • Absence of market knowledge
• Near western labor culture • Absence of research & R&D activities
• Geographic location • Small Local & regional market size
• Existence of potential local/regional sponsors • Low quality Art skills
• Potential local/regional finance • Minimal existing investments
• Minimal existing working companies
Opportunity Threat
• Lake of ME content • High market competition
• High international development cost • High quality production expected by users
• Huge market demand • High technological entry barrier
• High market gross ratio • Required financial capabilities
• High Profitability • Success Ratio
• Clear distribution business model • Publisher Outreach
• Well defined marketing strategies • Technology Provider Outreach
• High opportunity for international export • Frequent Platforms Technological enhancements
• Business model encourage small developers to participate • Future Indirect competition for new platforms (mobile,…)


Suggested Strategy & Mechanism… Ecosystem
57


Suggested Strategy & Mechanism… Mechanism
58

Increase Local Demand International Academies Technology Providers

International Exhibitions Competitions Post Grad Studies Support

International Publisher R&D Activities

Management Company

Comp 1 Comp 2 Comp 3 Comp 4 Comp 5


Suggested Strategy & Mechanism… Idea
59


60

Private management company to guarantee business performance
This company must include the following centralized services:
Senior professional top management
A foreign senior management for Art, Programming, PM, QA, Testing,…
Powerful HR, financial and administrative team
Professional marketing unit
Target is to manage and guarantee the success of the incubated companies
Manage and coordinate the whole process starting from preparing the idea incubation competition,
knowhow transfer, publishers deals and ending by a successful go to market product.
Business model between the management company and incubated ideas must be designed, which could
include:
Equity share
Profit share based on success
…


61

Incubated ideas must have a clear selection criteria which may include…
Proposed idea must be on a defined platforms
Proposed idea must guarantee the international market acceptance
Proposed idea must be proposed by a minimum of a team of 3 members
Proposed idea must accepted from minimum 3 different publishers
Previous experience or certificates in game industry must be weighted
…
Incubated ideas must have a clear graduation criteria which may include…
Agreed upon revenue amount
Agreed upon market penetration
…
Incubated ideas must have a clear termination criteria which may include…
Specific number of missing milestones delivery time
Agreed upon period in which game did not reach sales targets after launch
…


62

Bringing International Publishers on the Table, through
Gov will support the down payment usually paid by publisher
Publisher will asked to chose the idea which publisher is interested in.
Publisher will allocate the marketing budget required for such product
Publisher will sell/ distribute and market product.
Publisher will pay to dev company sales % immediately upon sales
Participation in international exhibitions (minimum 3 for 5 companies)
Invite international players for local workshops sponsored by the Gov
Increase local market demand through awareness and IPR enforcement


63

International technology Providers
Gov will conduct the required attraction, through offering subsidized training on tools
Gov will provide them with all the required awareness
Gov will subsidize their operation to support and operate for the region
Gov will pay the required license fee for dev companies
Gov will help to establish an international Digital Gaming Academy in one of the existing universities (Nile
University is recommended). Courses to be taught by international instructors
Gov will subsidize Training and Master courses in the local Digital Academy
Gov will subsidize international Masters and PHDs
ITAC to allocate a yearly budget for industry academia cooperation in this field.
A Yearly competition for entrepreneurs and researchers
Cooperation with international market through funded projects as FP7


64

Expected Investors, sponsor and angel may include
MCIT and ITIDA is a must
Ministry of culture may be interested
Ministry of tourism may be interested
Ministry of Media may be interested
Donor programs focusing in SMEs, Entrepreneurs and Technology
Multinational Companies working in Egypt (SW, HW, Teleco, ISP, …)
Local and Regional Charity Programs (Jamile, Saweris,…)
Regional Bodies as MBR foundation
Ministry of Defense
Ministry of Foreign Affairs
Ministry of Education
Alex Library
…


Suggested Strategy & Mechanism… Total Cost
65


66


67


68


69


70


71

ROI


ROI… Intangible
72

5 Active Companies with Required On hands Experience
200 Team Member core of the new industry
15 international Expert transferring Knowhow
National Academy for Digital Gaming
180 Conducted Certified Courses
25 Master Holder from international bodies
15 wining Gaming business plan from yearly competition Completed
9 R&D projects
Minimum of 3 Technology providers on operating locally Ecosystem
Minimum of 5 Publishers distributing Egyptian Companies
15 International Exhibition over the 5 years
10 Seminars over the 5 years
Increase local demand program


ROI… Tangible
73

Direct Incubatee Investment = 10,000,000 USD
Expected Sales Revenue
1 Incubatee = 2 M Copies = 10,000,000 USD
1 Incubatee = 0.5 M Copies = 2,500,000 USD


74

International Games Samples
• Assassins Creed
• FIFA 2010
• World of Ware Craft


Sample Games… Assassin’s Creed
75


Sample Games… Assassin’s Creed
76

Ubisoft a France-based company
One Fiscal year by end of 2008, version one sales =
€928 million
Sold over six million units in to retail
The game for Xbox 360 and PlayStation 3 is expected
to sell more than five million copies
It cost $15 million to $20 million to develop, and was in
the works for four years.

Source:http://www.videogamer.com/news/assassins_creed_sales_now_over_six_million.html

Sample Games… FIFA 2010
77


Sample Games… FIFA 2010
78

43 million games have been
played online on Xbox 360 and
PlayStation 3
Biggest Sports Game Launch Ever
With Over 1.7M Copies Sold At
European Retail In First Week

Source: http://fifa.easports.com/enUS/earth
http://elmundotech.wordpress.com/2009/10/07/ea-sports-fifa-10-europe-sales-record-recor-de-ventas-en-europa/

Sample Games… World of ware craft
79


Sample Games… World of ware craft
80

As a massively multiplayer online game, World of Warcraft
enables thousands of players to come together online and
battle against the world and each other. Players from across
the globe can leave the real world behind and undertake
grand quests and heroic exploits in a land of fantastic
adventure. At long last, the world of Azeroth, first glimpsed in
Warcraft I and further enhanced in subsequent strategy
games, is realized in glorious detail and ready for the arrival
of millions of prospective players. So step upon the hallowed
shores of this embattled world, and see what journeys await
for those who would plumb this ancient realm's many secrets.

Source: http://www.vgchartz.com/games/gamesummary.php?id=6529

81

Egypt Games Samples
• Cell Factor
• Abohadid


Sample Games… CellFactor Psychokinetic Wars
82


Sample Games… CellFactor Psychokinetic Wars
83

CellFactor: Psychokinetic Wars can be downloaded for 800 Microsoft Points and costs $9.99
on the PlayStation Network and is rated "T” for Teen.

About CellFactor: Psychokinetic Wars
CellFactor: Psychokinetic Wars combines both single-player and multiplayer components into
one action-packed downloadable title. The game includes four multiplayer modes supporting
up to sixteen players (Death Match, Capture the Flag, Team Death Match and Assault) and
features a deep single-player campaign with 30 solo challenges, ten for each of the three
characters. As your score increases, you gain access to added perks such as faster stamina
regeneration, increased fire power and enhanced teleporting, as well as unlockable
customization options for your character. And with support for Xbox Achievement Points and
PlayStation Trophies, CellFactor: Psychokinetic Wars is destined to be one of the top games
released on Xbox LIVE Arcade for Xbox 360 and PlayStation Network.

© 2008 Timeline Interactive and Immersion Games. All Rights Reserved. Published and
distributed by Ubisoft Entertainment under license from Timeline Interactive and
Immersion Games. CellFactor is a trademark of Timeline Interactive and Immersion
Games and is used under license.

Source: http://www.immersionsoftware.com/ and http://www.cellfactorgame.com/
http://www.ubi.com/US/Games/Info.aspx?pId=7298 and http://www.gamershell.com/companies/ubisoft/610954.html

Sample Games… Abohadid- Bohaa
84


Sample Games… Abohadid- Bohaa
85

Abo Hadeed is first full fledged 3D PC and network
game ever to be inspired by the egyptian environment.

The game is a third person shooter action game, where
the pratagonist ( Abo Hadeed ) struggles against
various criminal groups in various Egyptian scenes.
Through those adventures, Abo Hadeed fights different
enemies, solves difficult puzzles and discovers a lot of
staggering revelations.

Source: http://www.immersionsoftware.com/ and http://www.cellfactorgame.com/
http://www.ubi.com/US/Games/Info.aspx?pId=7298 and http://www.gamershell.com/companies/ubisoft/610954.html

86

For More Information and Further Discussions
Al-Motaz Bellah Alaa Al-Agamawi
Email: magamawi@gmail.com
Skype ID: magamawi
Linkedin Profile: http://www.linkedin.com/in/motazalagamawi
SlideShare Profile: http://www.slideshare.net/magamawi

thank you…

Game industry Part 3- Egypt Suggested Proposed Strategy 2009

Recommended

Recommended

More Related Content

Viewers also liked

Viewers also liked (17)

More from Motaz Agamawi

More from Motaz Agamawi (20)

Recently uploaded

Recently uploaded (20)

Game industry Part 3- Egypt Suggested Proposed Strategy 2009