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Forums - Microsoft Discussion - N+ cost $214,000 to make for XBLA - how fast will it turn a profit?

From the post-mortem article at http://www.gamasutra.com/php-bin/news_index.php?story=17490

In an Independent Games Summit talk on Tuesday, Metanet's Mare Sheppard and Slick Entertainment's Nick Waanders discussed the making of N+ for Xbox Live Arcade, debuting on XBLA tomorrow, taking a great in-depth nuts and bolts view of making a downloadable console game, and estimating a $125,000 minimum cost to make an Xbox Live Arcade game.

Starting out, Sheppard commented from a console starting-point: "A well-developed prototype is worth its weight in gold." She also noted it was important to prove to your distributor the game could work, commenting: "Microsoft was [initially] concerned that they wouldn't translate to HD in a very... exciting manner" - but an HD demo version convinced them otherwise.

As for how the game is funded, the Canadian duo managed to get Government funding from Telefilm for the game, with the duo explaining that it's a loan that's repaid out of profit. Sheppard then showed a full breakdown of N+'s costs - with $214,000 in total development dollars for the game.

She particularly noted that, even taking the programming in-house, it costs about a minimum of $125,000 to develop an Xbox Live Arcade title, including many of the compulsory or necessary payments for localization, testing, and so on. She did note: "Pay yourself as much as you can" with regard to salaries - in case of title delays.

Sheppard also commented on timing for the Xbox Live Arcade release, that if you're not necessarily a very high profile game: "Occasionally you'll get prioritized, or bumped." In general she praised the Xbox Live Arcade submission and publishing process as being "smooth", though.

Waanders then took a month-by-month overview of the project, starting in February 2007, when they started by borrowing the Eets codebase from fellow Canadians at Klei Entertainment, and moving through the year. He revealed a host of useful tips - including the creation of a custom visual effects editor early on, as well as early sound and UI design outsourcing.

The Slick Entertainment code also mentioned when showing the debug menus that it was a capture of "our new game" = presumably also for Xbox Live Arcade - but didn't specify what the title is. The alpha version was complete at the end of June 2007 - all the documentation and related materials took the N+ developers 3 to 4 days to complete and send to Microsoft.

Through the summer, the companies put together the ESRB and foreign ratings submission - with a 15 minute video of the game - with a document describing it. The artist doing this took 4 days.

In August, VMC (Microsoft's recommended testing partner) started testing the XBLA title, with particular problem areas being dialog boxes for potential errors, and network bandwidth issues. They also showed the game at PAX in August.

The different multiplayer modes - including local, system links, and networked ranked and non-ranked - gave the companies some problems, and TCR issues and ranked leaderboards also became an issue.

In addition, some level name changes were needed - according to Nick, Mare & Raigan at Metanet "have an uncanny ability to find level names that are not OK with Microsoft legal." The game failed certification on a single-line code bug the first time out, but was approved in January 2008.

As for lessons, things that went right included a set design, homebuilt tools that helped the developers a lot, and using PAX for focus testing. In addition, things to improve include perhaps too many features and options in the game - leading to a great deal of complex multi-mode bugs. But overall, the project was completed swiftly and efficiently - and the audience appreciate this postmortem.

 

Very neat, engrossing article. A few notes:

* Between making coding, testing, certification, and other costs, a Xbox Live Arcade game costs atleast $125,000 to make a new Arcade title.

* N+ took exactly 1 year to make - from start to finish. The game's alpha version was done just 4 months.

* The most difficult aspect was the net coding for multiplayer, leaderboards, and optimisation.

* Yes, it cost $214,000 for litterally everything.

 

IMO, this is very, very important that they disclosed the prices. $214,000 is very, very cheap (IMO) for a game that is somewhat anticipated. I expect N+ to sell around 5,000-6,000 units it's first 3 days on market.

And for those counting, using the various methods I've come up with, in order for N+ to make it's budget back in 18 months, it needs to sell 7.1% of it's cost to make the company a profit - this translates to roughly 1,519 copies in it's first 3 days to have a profitable curve. Is this doable? I think it's doable in it's first few hours on the market, let alone 3 days.

For anyone counting: I do property management in my town, and invest alot. Numbers like this means that I am really, really interested in using some of my investment profits to greenlight a game or two in the future.

And for others counting, if $125,000 was needed to make a basic XBLA game, a game would need minimum revenue of $8,875 it's first week assuming the game had a 5x multiplier from it's first 3 days to first month (average is 5.3) and had a 20x multiplier to it's first 18 months (which is average, according to MS).

 



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Wow, great breakdown, Stick.

I would love to see you really go in-depth on this topic in an editorial sometime. You really have a knack for this sort of thing.




Or check out my new webcomic: http://selfcentent.com/

Yeah. I feel strongly about the downloadable games market, and enjoy it.

I will probably write an editorial in a few weeks. In a few weeks, I might also have an interesting announcement about myself too :)



Back from the dead, I'm afraid.

mrstickball said:
Yeah. I feel strongly about the downloadable games market, and enjoy it.

I will probably write an editorial in a few weeks. In a few weeks, I might also have an interesting announcement about myself too :)

Heh, right on. I look forward to it. The downloadable arena is still very much a mystery and any methodology you have to break it down is great, even if it may not be perfect right off the bat.




Or check out my new webcomic: http://selfcentent.com/

i think this game will be very profitable for them,and i am awaiting your announcment



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My methodology wasn't right, right off the bat, merely because there is litterally no one even covering the market.

However, over the months of working with XBLA data, I went from correctly identifying 2-3 the top-10 games for the Arcade, to always getting 8-9 correct each and every week - and with entire justification(s) for the last title or two.

Since the beginning of the charts, I've recieved anonymous, and not-so-anonymous PMs from people in the downloadable games industry. In the beginning, the PMs were "your way off on the numbers, make sure that you post that they're just estimates" to "I work in the industry, they're within 10% for the vast majority of games" - which even if they aren't legit, they do make me feel warm at night.

But then I have recieved PMs from actual XBLArcade companies, with verifiable names/email addresses, which I am excited about. If I get more time, I'm hoping to do more stuff with XBLA, and hopefully PSN and WiiWare in the future.



Back from the dead, I'm afraid.

Anyone have a link to some in-game shots of this game in motion?



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I'm still confused. Can you give me a number of units it needs to sell?

Off topic: I SO plan on buying this game



mrstickball said:
My methodology wasn't right, right off the bat, merely because there is litterally no one even covering the market.

However, over the months of working with XBLA data, I went from correctly identifying 2-3 the top-10 games for the Arcade, to always getting 8-9 correct each and every week - and with entire justification(s) for the last title or two.

Since the beginning of the charts, I've recieved anonymous, and not-so-anonymous PMs from people in the downloadable games industry. In the beginning, the PMs were "your way off on the numbers, make sure that you post that they're just estimates" to "I work in the industry, they're within 10% for the vast majority of games" - which even if they aren't legit, they do make me feel warm at night.

But then I have recieved PMs from actual XBLArcade companies, with verifiable names/email addresses, which I am excited about. If I get more time, I'm hoping to do more stuff with XBLA, and hopefully PSN and WiiWare in the future.

Awesome. I remember some of your first numbers and knew you were unsure of the methodology you were using. Over time, I've noticed that you're a lot more confident in both your predictions and your overall numbers.

Since no one else is even attempting to figure out downloads, it's a great asset for the site to have. 




Or check out my new webcomic: http://selfcentent.com/

I never knew that an arcade game can amount to over $200,000.



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