The new world is getting more advanced and skilled, and there are many kinds of games to entertain us. Many companies focus on setting up a game development studio because it's exciting; you've got the idea, the skill, and maybe little pre-release hype. But why do so many game studios crash and burn before they fire up their first game? It's not just about building a successful game.
A poorly designed studio — structurally, organizationally, and managerially — is often the smoking gun. There are endless answers to why the studio went wrong once the deed is done, but let's bury our nose into the less visible problems, those that aren't so obvious in the crowd, why so many game companies fail, and how you can save your startup from a similar outcome.
Why Game Development Planning Matters and Cannot Be Ignored
Game development is filled with dreamers. Without fresh ideas, it's impossible to survive in an industry that moves at the speed of light. That said, while a tidal wave of genius visions is essential, proper game development planning is the only way to get from vision to completion without an asteroid-sized impact.
A game studio with no discernible map for game development will, over the course of time, but into burning through budgets, killing team morale, and increasing timelines via anarchy. If your head is flooding with Indie Game Development ideas but tracking those to completion through process, milestones, timelines or roll-back tactics, you're only back to fire-and-forget.
It's easy for game studios to overlook this stage, thinking that they can work out what to do as they go. However, this process inherently consumes valuable work hours and team enthusiasm and can have the same level of success as firing in the dark and hoping for the best. A good game development plan isn't just a list of deadlines; it's a carefully plotted map that can guide you from concept to reality and beyond.
Pro Tip - Keep your game development plan as flexible, free and alive as possible. After setting a bunch of milestones post-launch to formalize the game design - make sure to stop, backtrack and work on those check-points whilst making new destinations! With Virtual Reality in game development, you should look to issues arising before the actual development process begins - try the agile way.
Expand Too Quickly
If there is a trap many game studios–especially those that have had some success early on—fall into it’s expanding too fast. Perhaps your first mobile gaming app hits the charts and you have immediately hired a bunch of people, got a bigger office and thought about acquiring another game studio. The issue? Growth too quickly almost always leads to mistakes with money and inefficiency.
What does it mean to build a game studio? It could be compared to building a game. Each level (or phase) needs to be tested, adjusted, and balanced before proceeding. Skipping too many levels too fast can result in a crash of the entire project.
Not Using Collaboration and Feedback
Game development is inherently collaborative. Yet, some game studios fail because they build silos—an artist, a programmer, a marketing person…but never talk to each other. Not collaborating slows down game development projects and it hinders creative cross-pollination.
Even worse, many game development companies fail to get feedback from outside the company. Games are for players! Getting feedback on your game from the beginning alpha all the way to the last release is vital. Studios that do not involve players in the early game development stages usually find themselves scrambling to fix problems after launch (if they even get to the launch stage).
Pro Tip: Culture of open collaboration. Game development is a creative endeavor and creativity relies on environments that foster feedback. This foster feedback from the internal team you create and feedback while testing with your game community.
Devaluation of the Shift in Culture Towards Mobile and VR
Indeed, it may seem glorified to develop AAA titles or to be involved in indie game development for consoles or PCs, but what about the booming mobile gaming app market? No one can ignore the increasing demand for virtual reality as an immersive tech option in game development. Forgetting about these easy-to-grow industries—even mediocre games or experiences—can set back a studio.
Developing for a mobile platform or the incorporation of a VR tech option doesn't simply mean porting your "already developed game". It necessitates a new way of thinking and consideration to present your physical or video game product. Many times companies fail in developing either mobile or VR, in the understanding of these markets, and not knowing how much development (technical and design) will be required to move forward.
Ignoring the Business of Game Development
Games are art, but a game development company is generating revenue. It is doing a lot like managing cash, making smart decisions business. For example, a studio can release a game but not think it needs a monetization strategy (like in-app purchases in mobile gaming apps), or develop games to generate brand awareness for themselves - these can sink a studio. Nothing needs to be a best-selling title, but each game should think about regular profitability.
Poor Studio Culture
Although studio culture may not seem like a technological factor, it is essential for sustaining a long-term game development company. Toxic work environments lead to high turnover rates, burnout, and a lower quality game. Although it may feel good to push your team to the brink of losing their passion or their life, the intersection of all of these factors is to be balanced with a whopping boost of creativity.
Final Ideas
Game development is an art mixed with a science and business. So, when you are thinking of starting a game studio or running it, stop making it about the game and think rather about how your studio is designed, developed and strategized. The best game-developing companies understand the importance of creating a plan and working together. Stay away from these mistakes and you might just create next year's next big game.
Next Steps
If you are thinking that you want to start a game studio, or you are looking to replace the one that you have, you have to take a step back. Look at your game development process, your team, and what you aspire to grow into long-term, and make sure you are not only thinking BIG....but also SMART.
FAQs
Can you elaborate on how collaboration difficulties can impact a game development studio?
When teams work alone with little cross-talk, compromise and creativity are stifled, and the development process slows and becomes more likely to encounter issues.
Why do game studios focus on mobile and VR development?
Mobile Gaming and virtual reality are exceedingly lucrative and growing markets. The inability to develop in these areas may risk losing an enormous contribution to revenue and a level of player engagement that comes along with those platforms.
What are common challenges in a game studio's development process?
Common pitfalls include poor planning, scaling too quickly, a lack of collaboration, and neglecting market trends like mobile gaming and VR.
Why do you think it is important for game development companies to have a business model with monetization?
If a studio does not develop a clear revenue strategy, a fantastic game can fail to be profitable enough to support the studio. Therefore, monetization helps your business to grow.
What’s the difference between indie game development and large-scale studio projects?
Major differences between indie game development and large studio projects would include the fact that generally, indie games are small group builds, both with regards to budget and often creative freedom in definition by the developing group. Large studios, on the other hand, are often large groups and budget usually have expectations of meeting tighter deadlines and generally have more expectations.