Project for the promotion of Videogame Industry in Mendoza

Guillermo Nuñez

Current state of the Videogame Industry in Mendoza

  • Highly informal
  • Very few studios actually exporting products
  • Several studios with technical capacity to export
  • 15 formed studios
  • ~ 300 developers (active and non-active)

our next 5 years plan

  • +25 videogame studios on international markets
  • +170 professionals working full-time
  • +150 indirect professionals
  • +1.6 million dollars of foreign publisher funding
  • Capability of become self-sustaining

Units sold

30000

Average videogame price on Steam: US$ 10

US$ 140000 profit over 3 years (50% - 30% - 20%)

  • US$ 65000 necessary investment
  • US$ 13000 Development cost of an MVP + Concept Art + Sales folder + travel costs
  • An MVP requires 3 developers, final product requires 5, along with 6 outsourced jobs

Sales over time

US$ 300000

of investment fund required

  • 40000 management
  • 260000 investment

US$ 260000

with

  • 20 projects can develop their MVPs, get ready to find a publisher and travel to 1 international market
  • 4 of these projects find investment and publish (with an estimated the success rate of 20%)
  • 44 people hired by those 4 successful projects
  • 48 professionals hired by non successful projects.
  • US$ 31000 of return on investment (50% of sales)
  • All of this on the 1st year

US$ 240000 + 47000

2nd year

  • 22 projects
  • 6 of these projects find investment and publish, success rate is now 30%
  • 1 studio can continue without funding (25% of successful studios)
  • 84 professionals hired by those 7 successful projects
  • Return on investment of US$ 98000 (25%previous year and 50% current)

Funds

5th year

  • 33 projects
  • 19 successful, success rate of 60%
  • 7 studios without funding at this point
  • 209 professionals hired by those 23 successful projects
  • Return on investment of US$ 362000 (at this point, the initial State investment is surpassed )

US$ 180000 + 255000

Hired professionals

Ways to improve on this

  • Continuous training
  • Rigorous filter
  • Outside evaluation committee
  • Compromise the State to provide a minimum of US$ 66000 (administrative cost + 2 projects)
  • 2 annual evaluation windows
  • Facilitate the existence of private investment funds for the 2 project of the successful companies

Ways to improve on this

  • Open to investors that only spend if a publisher is found
  • Compromise the State to provide a minimum of US$ 40000
  • Constant training
  • Mobility to international markets
  • Put a cap to what the studio has to return to the fund of 2.5 - 3 times of what they received

Unlike great wine, great games can be made anywhere in the world.
There is no reason why the next blockbluster game can't come from creators in Mendoza. Games are global, and the size of Mendoza is not a limiting factor.

Jason Della Rocca

Proyecto de Fomento de la Industria del Videojuego en Mendoza - Government version

By Guillermo Nuñez

Proyecto de Fomento de la Industria del Videojuego en Mendoza - Government version

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