How do small video game makers stay afloat?

[Ikohn4ever]

I was wondering this lately and didnt really know the answer. This came about because there is this small company called Zoonami that has game for a nintendo system supposedly coming out who know when and seems to been developing for a while. I know they were making a couple games but I dont believe they have released anything lately. So that brings me to my question is where do they get the capital to stay afloat since it has been years since they made money off of a product? I am guessing that they get money from a publisher but until the game is picked up by someone I really dont see any money going there way. So how they do that?

[Snake2715]

I was wondering this lately and didnt really know the answer. This came about because there is this small company called Zoonami that has game for a nintendo system supposedly coming out who know when and seems to been developing for a while. I know they were making a couple games but I dont believe they have released anything lately. So that brings me to my question is where do they get the capital to stay afloat since it has been years since they made money off of a product? I am guessing that they get money from a publisher but until the game is picked up by someone I really dont see any money going there way. So how they do that?


I think Nintendo picked them up a year or two back didnt they?

[kakomu]

Independent investors and going public with stock in their company.

[PittsburghAfterDark]

Someone that small, venture capital.

There are a lot of ways of private financing other than self-financed revenue streams stemming from product sales to fund a company and product development.

[dafoomie]

Its all about cost control, minimizing risk, and finding your niche. A small developer would be sunk if they had a development cycle like Duke Nukem Forever. They also can't expect blockbuster sales, if they expect modest sales and budget accordingly, they're usually ok. A lot of bigger companies will spend on every title they make as if its going to be a blockbuster, and any title thats not, is a failure. Its much harder now for a small, indie developer to survive than it was years ago, but the smarter, better run ones can still do pretty well for themselves.

[Reality's Fringe]

They lose tons of money and run up major debt (Double Fine) or get bought up(Free Radical).

[VanillaGorilla]

They just paddle their arms and legs.

[ITDEFX]

Its all about cost control, minimizing risk, and finding your niche. A small developer would be sunk if they had a development cycle like Duke Nukem Forever. They also can't expect blockbuster sales, if they expect modest sales and budget accordingly, they're usually ok. A lot of bigger companies will spend on every title they make as if its going to be a blockbuster, and any title thats not, is a failure. Its much harder now for a small, indie developer to survive than it was years ago, but the smarter, better run ones can still do pretty well for themselves.

lol Duke Nukem Forever...thats been in development hell for what 9 years? remind me never to submit my demo reel to 3d releams as I would be probibly working on a product that will never see a public release :| Its funny...with what happened to Half Life 2 (hackers got a hold of a pre-released version) and it doesn't happen to DNF? DOES THIS GAME EXISTS ANYMORE?!?! I really don't think its a highly anticpated game anymore, as the public would more likely want to see an offical press release saying its been canned.

[Kuros]

Low costs + good games pretty much.

If you want an excellent example of a small video game company staying afloat for a very long time, look at Spiderweb Software. They have been in business for about 12 years now making PC RPGs. They look to be on the simplistic side, but they are great games. I have the Exile Trilogy and I'd say there is hundreds of hours in those games.

[Snake2715]

Low costs + good games pretty much.

If you want an excellent example of a small video game company staying afloat for a very long time, look at Spiderweb Software. They have been in business for about 12 years now making PC RPGs. They look to be on the simplistic side, but they are great games. I have the Exile Trilogy and I'd say there is hundreds of hours in those games.


I have their site saved in my favorites. Have yet to pick up their games..

Glad to hear some good news on them.

[daschrier]

Investors...

Many small start up companies won't make profit for years, and the investors continue to provide the money. Anyone in New England that remembers Kitchens Etc, I worked for them for a while, and even though they had been around for 10 years they weren't profitable until year 10.

[Apossum]

Nintendo mostly hires small devs to make their games, like Retro Studios and the people who made Metroid Pinball.