GarageGames Name Joins Torque Game Engine In Retirement

OK, I get to be all sentimental again. A month or so ago, GarageGames pulled the original Torque Game Engine off the market. Now, they are pulling the name GarageGames itself off the market, and replacing it with Torque Technologies. I can’t disagree with the decision Brett Seylor, TT VP of Tech and Tools, made to change the name. Torque is a shiny new modern 3D game engine, and they have decided that the idea of programming in a garage is not quite the image they want to project. Even though I understand, it still tugs at my heart strings.

GarageGames Logo and Motto

GarageGames Logo and Motto


When Jay Moore and I used to head out on the road to evangelize our idea, we loved every minute of it. It was exciting times doing everything we could to help indies. Having a mission that fills your heart as well as your brain makes you do things you would not normally do, like working for little to no money for a long time, or getting up in front of big crowds to do public speaking (which I hate), or cold calling hardware companies to have them help out at IndieGamesCon.

We got paid back in so many ways though. Like our first booth at GDC, a wooden concoction I had a friend make for us. Our little 10 X 10 booth was the busiest per square foot of any booth at the conference, with people lined up 10 deep just to get in to talk to us. Or like seeing employees at big companies like EA walk by and thrust their clenched fist in the air and shout, “GarageGames!” with us knowing that they were using Torque in their off hours trying to escape the Man. Or having and incredibly talented and dedicated developer drive across the country to work for us for peanuts and sleep in his cars for days until they he was paid enough to get a room (we didn’t know this until years later, and that guy is now one of my partners in PushButton Labs).

What's It Worth On eBay Now?

What's It Worth On eBay Now?

I don’t think that kind of magic can ever happen twice in a row. But, after Dynamix, I never thought I could start and work at a place that would have its magic, yet GarageGames surpassed it. You never quite know the magic is happening when you are in the middle of it. There are time pressures, the stress of development, paying the bills and worrying about money. You need to look inward and make sure you feel the magic. This time around I am actively looking for the magic. My senses are a lot more tuned to it. I can tell you that the past two weeks have been nothing but magic, and some day I’ll blog about it when I can bring it public.

-Jeff Tunnell, Game Maker
Make It Big In Games
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Odds and Ends

Before getting down to business here in 2009, I have a few small items to catch up on.

Congratulations to GarageGames’ Torque Game Engine Advanced for winning the 2008 Game Developer Magazine Frontline Award for Best Engine. Matt, JoshE, Ken, Deborah, et.al. in the TnT group have been working their butts off bringing Torque to a new level of professionalism, and it is great to see their efforts recognized.

Ryan Wiancko over at Industry Broadcast has been taking blog post from developers like myself, Dan Cook, and Troy Gilbert and turning them into podcasts. So, load up your iPod for your next road trip and catch up on your neglected reading. Maybe now that I have mentioned Ryan, he will spell my name right on my articles. :D

Jeremy Alessi, of Alessi Games, just put up a nice article on Gamasutra about his experiences creating a game for the iPhone. I have worked with Jeremy since the early days of GarageGames where I encouraged him to finish Aerial Antics so we could publish it. Nobody works harder at game development, and it is nice to see him getting some recognition and success.

-Jeff Tunnell, Game Maker
Make It Big In Games

Make It Big In Games Forums

I just turned on the fancy new forums courtesy of the Push Button Labs OnePress Community framework. Click the link to check it out, and write some quick posts to test out the system.

I have always wanted a way to interact more with the readers of this blog, but didn’t like the disconnected feeling of forum systems. So, one of the first projects at Push Button Labs was to connect Wordpress to phpBB. The first step was a simple skinning, common log in, and a set of widgets to display hot threads, etc. on the Wordpress side. We will continue to add features to OnePress to facilitate creating communities.

-Jeff Tunnell, Game Maker
Make It Big In Games

Grand Theft Share Price, Corporate Doublespeak, pt. 2

As further evidence of my MBG post Why I Don’t Own Stock In Game Publishers, I present Take Two.

Where Your Investment Is Going

Where Your Investment Is Going


After fending off Electronic Arts’ hostile take over bid earlier this year, Take Two just announced a fourth quarter loss of $15MM, and their projected 2009 estimates have gone from a profit of $1.21 per share to $0 per share. Remember, 2008 was a GTA year, and they still lost money. What was Strauss Zelnick’s take?

“The Take-Two Chairman expressed marked concern about the economic climate, but urged investors that the company is well-positioned”

Sound familiar?

As an exercise in futility I did a few calculations to see if Zelnick was right in fending off EA’s hostile bid. Let’s see, EA offered $2 Billion in cash in March of 2008. Take Two’s ($ttwo) stock was roughly $15.85 per share before the bid, and the day of the bid, the stock shot up to $26.89, roughly the value of the offer. Zelnick, in classic Jerry Yang of Yahoo’s amazingly greedy style, said the company was worth much more. After several months of haggling, EA pulled out. Today $ttwos share price was $8.43 for a market cap of $654MM, which, for those without a calculator, is over $1.3 Billion less than the earlier ALL CASH offer.

There is no GTA coming out next year, and probably not the year after. If the $ttwo share price is worth a couple of Starbuck cappuccinos at the end of a GTA year, what will it be worth next year? Not $2BB. Good job, guys.

On the other hand, I bet EA is happy they didn’t shell out the $2BB in cash. They just announced more layoffs of up to 1,000 people and the closure of Black Box studio (plus seven others). They are going to need the money to get things turned around.

-Jeff Tunnell, Game Maker
Make It Big In Games
Photo by Jarlhelm.

How Much Money Can Your XBox360 Live Arcade Game Make?

At the recent Microsoft Gamefest where GarageGames announced the new XNA game engine, Torque X, to complement Game Studio Express, Josh Williams, newly appointed CEO of GG, and myself gave a talk about Casual Game Smarts to a packed out room of game developers. Our discussion was about how to bridge the huge technology gap between downloadable games on the XBox and the PC. I have been, and will continue, going over many of the points in that presentation here in the MBG blog. A quick out take, and a part of the Indie game business that people are most interested in is “how much can my game make?”. I wrote about this subject in another MBG post called How Much Money Can Indie Games Make, Part 1.
Marble Blast Ultra
I have to be careful in writing about this subject not to break any NDA’s, but since I gave this presentation at a Microsoft conference with MS people all around, and I am still here, I am assuming I’m going to be OK. All of the information that I am giving is currently public or has been in the public in some form.

Cost of Development

Creating an XBLA game is taking most studios 6-12 months. Costs are currently ranging from $100,000 to $300,000. As my MBG article, XBox360 Live Arcade Opportunities Get Competitive In A Hurry! about how fast the bar is raising for XBLA development pointed out, this will inflate rapidly. The industry standard arms race will quickly make the top end $300,000 budget a cheap product. Right now, I wouldn’t consider attempting to make an XBLA game with a $100,000 budget. Development kits and Certification (QA testing) would eat up half of that, not leaving much for the actual game development.

While these budgets may seem high to Indies, these budgets wouldn’t buy coffee on a AAA console title for the retail box channel.

I can’t give the exact figure, but the Marble Blast Ultra budget was at the higher end of the current budget range. I am happy that we took the time to get the game right.

Sales

Marble Blast Ultra has been reported on many sites to be one of the highest grossing XBLA titles. I believe this to be true. While Geometry Wars has sold a lot more units, it sells at half the price of MBU (400 vs. 800 Gamer Points, i.e. $5 vs. $10). Some of the recent games on XBLA are selling through the roof (Street Fighter), they have not been on the market long enough to pass MBU in sales.

A public domain way of ascertaining an approximate number of units MBU has sold is to sign up for an account and get a very low score on the game. That will put your player on the leader boards in the lowest position. You will see that there are 100-120,000 accounts ahead of you. Sure, there can be duplicates, etc., but this is the closest you will come to finding out how many units a game has sold. For educational purposes, we will use the number 120,000 units sold, knowing that we are close. For a more in-depth read about using this method to determine XBLA game sales, check out Doug Walsh’s Randomly Geneterated Blog article The Numbers Behind Live Arcade. (NOTE- Please read the comments below his article because he got some of the methodology wrong, but readers corrected the mistake.) Until we got real numbers for XBLA sales, we were using this method internally at GarageGames, and it was nice to see somebody else come up with this method and put it out in public, so I didn’t have to worry about NDA’s for this article.

So, 120,000 units * $10 per unit = $1.2MM. That is a nice number for an Indie, but that is not the whole story. Remember, Microsoft should make something for making this cool distribution channel available, and they do take a cut. The publicly available information on this is that the distribution fees for bringing a game to XBLA is 35-70% depending upon participation by MS, i.e. the publisher gets 30-65% of the money collected for game sales. This is very much in line with what the casual portals are charging, so I think it is safe to say the numbers are probably close. Let’s say you are a publisher or a developer that is able to fund your own development, so, a $10 game (800 Gamer Points) would net you $6.50, or 120,000 units * $6.50 per unit = $780,000.

Again, if you are a starving Indie developer this sounds like an infinite amount of money. But, in the world of publishers, this is not considered a big hit. Back in the day, when I was in charge of an entire studio for a publicly traded company, we looked to make a 5X return on our investment, so a game with $300,000 in development would be targeted to make at least $1.5MM, or it would not be considered a success. Remember, as the head of a studio you need to take a “venture capital” approach, so not every title will make it’s 5X ROI, and some will do better.

But, I no longer have public shareholders to please. As the co-founder of a small independent game technology provider that makes a few games, I am extremely happy with our returns from XBLA360, and I also know that we are not done yet. Marble Blast Ultra continues to sell extremely well, the conversion rates are astronomical, and MS continues to sell XB360’s at an accelerating rate. We may yet hit the old 5X return that I used to be held to!

Like I explained in my earlier article about the bar raising in the XBLA360 arena, slot approvals are getting hard to get. In fact, I liken XBLA360 slots to the “Golden Ticket” in Willy Wonka. If you get one, you are set!

-Jeff Tunnell, Game Maker ::: GarageGames ::: Make It Big In Games

Five Foundational Steps To Surviving As A Game Developer

A couple of articles ago I promised that I would not blow smoke or make this blog into a preachy, self help type of publication. That said, this particular article just has to get a little preachy to work. MBG blog is about getting into and surviving the business of making games, but in order to get to the juicy stuff, I need to discuss foundational issues that every person needs to think about. These issues apply to any type of business, but especially for creative, hits driven businesses like making music, movies, or games.

Even though many of you will think these issues are obvious and don’t need to even be discussed, I have to answer these same questions every day, in many different ways, and I’m tired of it. If I write them down, I can just point to this article over and over, and it will save me a bunch of time in the rest of my life. So, here you go, the Foundational Five, or FF for short.

1. Right Size Your Life. Ugh, the most preachy of the FF, but it has to be stated. Entire books are written about this (if you want a good one, start with Your Money Or Your Life), movements have been created, and thousands of web sites are dedicated to this subject. The bottom line is that you cannot live downtown San Francisco, drive a Porsche, have three kids, eat out every night, have Starbucks two times per day, charge up the credit cards, and live the way most of society tells you to. If you want this stuff, start coding in Java and go to work for IBM. But if you want to enjoy your work, feel creative every day, and make games for a living, you will have to pay a price.

1996 Geo MetroI used to drive a BMW M3, but now I have a $2,500, 1996 Geo Metro with 116,000 miles. I love it. I get 40 miles to the gallon, insurance is next to nothing, tires are the cheapest available, people make faces at me when they zoom by, but I can park it anywhere I want, and in fact I do, about two inches from the driver’s door of the big, huge SUV that just made the face at me:) Mark Frohnmayer, my partner at GarageGames gave up his car and rides a bicycle to work.

By far, the best Indie Game Developer “right sizing” story comes from Josh Ritter, the awesome programmer/owner of Prairie Games, who picked up his entire life and moved to North Dakota to save money. It worked though. He was able to stretch his savings long enough to reach the holy grail of many indie developers and create his own MMORPG, Minions of Mirth. MoM was officially launched a couple of months ago, and I think we will all be reading Josh’s success story next year.

2. Don’t Quit Your Day Job. Now that you have your burn at a manageable rate, you need to make sure there is money coming in the door. Your day job can be your standard 40 hour per week plus benefits job, but that will leave you very little time for making your game. Many developers take a stepped approach, and have a consulting business on the side.

CGY LogoWhile it is beyond the scope of this blog to help you with this side of your life, there are many, many options for creative, talented, technical people. Here are two. In another life, I own Cottage Grove Yamaha, which I call my real life business. At that business, we use computers, but only as a necessity, not for fun. CGY is about 30 miles from GarageGames, so I can’t call on GG people to help with my IT problems. In real life, computers suck, and need a lot of care. Sounds like an opportunity to me. The CGY website sucks. In real life businesses need somebody to help them bring up their sites, maintain them, and make them better. Yet more opportunity.

Getting too preachy again, but I just want to make sure that you are thinking this through before jumping off the cliff. It will take a long time to get your income streams flowing. Just make sure you can last as long as possible to allow it to happen.

3. Find a team of like minded individuals. I don’t like working alone. It is too lonely. I’m not as creative as when there are people to bounce ideas off of. I eat too much. I procrastinate. We started GarageGames without an office and worked that way for the first year and a half, so I have a good idea of how web based teams can work. This step is more about having a team than all working in one spot though. The team is the important thing.

I am constantly approached by programmers that say they can’t find artists, and vice versa. Designers and producers say they can’t find teams, yet I know there are many teams out there that need management, marketing, sales, and PR help. Future MBG articles will cover tips on how to find the right team.

I have always had partners. At Dynamix, I had Damon Slye and Kevin Ryan (see a little history of Dynamix here). Now, at GarageGames, myself, Mark Frohnmayer, Rick Overman, and Tim Gift have all been mutually pushing the rock up the hill for the past six years. The great thing about having partners is that there is never a time when the entire team is down in the dumps at the same time. In addition, the kind of ideas that turn me on take way more than one person to execute, so having a team is essential.

4. Innovate, but not too much. Finally, we get the stuff you are probably here for, and I’m going to pretty much short change you! Many, many of the future articles of MBG will focus on this step, so I don’t want to just cover this and have it be the last MBG post. The short version of this step is that I used to preach that the world did not need another match three bubble popper, Mahjong game, or card game, but all of those game types have continued to sell in the Casual game space, and are even beginning to be considered genres.

If you really are a game maker, you should have literally hundreds of ideas. Some will be innovative, some won’t, but there should always have some hook that makes a gamer want to play your game over the thousands that are on the market. What is that hook?

5. Create a portfolio of products. Any financial planner will tell you to create multiple streams of income. This industry is no different. Unless you are really lucky, one game will not bring you enough revenue to live. However, in a world with unlimited shelf space and a nearly unlimited customer base, your game can sell for a long time. Think about it, the number of shipped games compared to the potential number of players always rounds to zero. In effect, your game never ships! Marble Blast sells as many units today as it did the second month it shipped (we actually had a ship-in spike in sales), and that is without an update in a couple of years.

You need to keep ‘em coming. Every game brings you more opportunity, your company brand grows, your niche audience grows. Then, suddenly, you are making enough money that you are doing this full time. It IS your day job, and nobody can take it away from you. You own your IP, you own your code, you have a tight connection with your audience, and you can’t wait to go to work every single day. In fact, there is no such thing as a “day off” because this is what you do. It is you. And it feels good.

Sorry, way too preachy, but I couldn’t help myself:)

-Jeff Tunnell, Game Makermakeitbigingamesgaragegames

OK, the Blogging Has Started

Welcome to my blog. Everything is under heavy construction right now, so I’m not really blogging yet. I need to make sure everything is going to work and grow with me in the future as my traffic goes up to, say, 10 readers or so.

As of now, I have decided to get an actual domain name, Make It Big In Games, use Word Press (open source, lots of plug-ins, easy to move around, free), host it at Yahoo (because it was a one button installation) for $8 per month, get a Feedburner account to watch the traffic on my RSS feeds, set up a premium wiki account at PBwiki (excellent wiki that has an awesome free account to get you started), http://makeitbigingames.pbwiki.com, so the community can join me in spreading my ideas.

After I run a few more tests, implement a few more features, figure out what the site will actually look like, I will try to make fairly regular posts about how to get into and survive in the game business. Most of my writing will be about the Indie side of the business because that is where I think the real action is going to be in the future.

It may seem redundant, but I am going to include all of my contact information at the bottom of all of my articles. There are so many scraping sites that I want to make sure that if my article is going to generate traffic for somebody, at least I get credit for it. I could only release summaries of my articles, but I know I like reading entire articles in my reader.

-Jeff Tunnellmakeitbigingamesgaragegames