Project for the promotion of Videogame Industry in Mendoza

Guillermo Nuñez

5 year plans

• +20 videogame studios on international markets
• +150 professionals working full-time
• +100 outsourced professionals
• +1.5 million dollars of direct foreign investment
• Self-sustaining

Current state of the Videogame Industry in Mendoza

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

Units sold

30000

Average videogame price on Steam: US$ 10

30000

• 10000 full price units
• 20000 half-price units
• US$ 200000 in gross profits (3 years)
• 30% Steam cut
• US$ 65000 necessary investment
• US$ 10000 Development cost of an MVP + Concept Art + Sales folder
• An MVP requires 3 developers, final product requires 5, along with 6 outsourced jobs
• We consider the studios' investments to sum up to 10% of total.

US$ 200000

of investment fund

US$ 200000

with

• 20 projects can develop their MVPs and get ready to find a publisher
• 4 of these projects find investment and publish, the success rate is 20%
• 44 people hired by those 4 successful projects
• 48 professionals hired by non successful projects.
• US$ 25000 of return on investment (14% / 3)
• All of this on the 1st year

US$ 180000 + 25000

2nd year

• 20 projects
• 6 of these projects find investment and publish, success rate is now 30%
• 1 studio can continue without funding (25% of successful studios)
• 71 professionals hired by those 7 successful projects
• Return on investment of US$ 62000 (previous year and current)

5th year

• 28 projects
• 16 successful, success rate of 60%
• 7 studios without funding at this point
• 115 professionals hired by those 23 successful projects
• Return on investment of US$ 224000 (at this point, the initial State investment is surpassed )

US$ 120000 + 160000

Funds

Hired professionals

Ways to promote

• Minimum requirements (Eg: to have a previous publication)
• Competitions and capacitations for those who don't meet the requirements (instead of giving direct investment)
• 3 annual windows
• Rotative evaluation commitee
• Let investors first recover their investments before receiving profits (10% of extra profit for the studio)

Ways to promote

• Let investors recover their investment + whatever profit they would have earned by putting their money on the bank (10% of extra profit for the studio)
• Open to investors that only spend if a publisher is found
• Compromise the State to provide a minimum of US$ 40000
• Constant capacitations
• Mobility to international markets