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