The video games market is a dynamic and rapidly evolving industry characterized by continuous technological advancements and shifting consumer preferences. It encompasses various segments, including console gaming, PC gaming, mobile gaming, and emerging platforms such as cloud gaming and virtual reality (VR).
The global video games market has experienced significant growth in recent years, driven by factors such as increasing internet penetration, the proliferation of smartphones, and the rise of esports. According to industry reports, the market was valued at over $150 billion in [latest year], with projections indicating continued growth at a CAGR of [X%] over the forecast period.
While the video games market presents lucrative opportunities for growth, it also faces several challenges, including:
Despite these challenges, the video games market continues to expand, driven by innovations in technology, evolving consumer behavior, and the growing influence of gaming culture worldwide.
Products/Services represent an essential component of many business models and can be central to a company’s success. In a business plan, the product/services section provides a detailed overview of how the company intends to meet customer needs through the provision of specific product/services. Below are the key elements to include in this section:
Description of Services:
List of Services: Clearly and concisely enumerate the services offered by the company. This may include a range of services or focus on a primary service.
Detailed Description: Provide a detailed description of the products and services the company will offer, including a description of the game, the game’s features, the target audience and the platforms on which it will be launched.
Differentiation: Explain how the services offered differentiate from those of competitors. What unique or distinctive elements bring value to customers?
Another important step is to define the marketing strategies and business model: how the video games will be monetised, how revenues will be generated and how costs will be managed. The key to any game business plan in my opinion is a sound distribution strategy. Killer gaming elements and smooth graphics don’t mean a thing if you can’t show how the product is going to get to the cash register.
Distribution is a very complicated business in and of itself. For this reason most gaming projects sell their rights to distribute to the big boys who have a distribution network already in place. 10 vendors control 90% of the market and much of that is due to a lock on distribution.
Dealing with the distribution issue is like the egg and the chicken phenomenon. Big distributors won’t be interested unless you have a financial backer. Investors will be looking for a strong distribution partner and a sound marketing strategy to ensure that the product will get into the stores.
The easiest solution to the distribution issue, of course, is to partner with a major distributor. If you’re lucky, you can package the financing and distribution deals with one major company. Partnering with a major distributor also means that you’ll get help with the marketing. They may dictate the platform you launch first as well as creative issues, but given the difficulty in getting retail shelf space, it can save you a lot of where and tear.
If you do decide to go with “do-it-yourself” distribution and marketing, make sure your sales estimates show a slow build as you get awareness up. Also, show your investor that you have some smart strategies for getting your game into customer’s hands, whether it’s via direct mail, on the net or via shareware or in small, independent retail sites. Don’t neglect to include a PR plan which can give you some inexpensive market awareness.
Even if the project team isn’t set yet it’s important that investors know that you have a crew of experienced professionals ready to go when the money comes through.
Also include support personnel who might not be directly involved with the production of the project, but who support the company’s activities. That includes your legal counsel, business advisors, accountants, etc.
it is important to nclude an organizational chart even if no one is on payroll yet, or if almost everyone will remain a freelancer. It helps to show the chain of command and the critical responsibility hierarchy that will get the project done.
Advertising strategy, public relations, content marketing and influencer marketing.
Detailed projection of the company’s revenues and expenses during the first years, including the cost of game development, marketing costs and expected revenues.
Advertising is a crucial component of promoting video games and reaching target audiences effectively. The advertising strategy should encompass various channels and tactics to maximize visibility and engagement. Key elements of the advertising strategy may include:
-Target Audience Identification: Identify the demographics and interests of the target audience to tailor advertising messages accordingly.
-Digital Advertising: Utilize digital platforms such as social media, search engines, and gaming websites to display targeted ads to relevant audiences.
-In-Game Advertising: Explore opportunities for product placement, branded content, and sponsored events within video games to reach players directly.
-Cross-Promotion: Collaborate with other brands or game developers to cross-promote products or games to each other’s audiences.
Content marketing is a powerful tool for creating valuable, relevant content to attract and engage audiences. In the context of video games, content marketing can take various forms, including:
Influencer marketing leverages the reach and influence of popular content creators and personalities within the gaming community to promote games and engage audiences. Key elements of an influencer marketing strategy may include:
By integrating these marketing strategies effectively, video game companies can increase brand visibility, engage with target audiences, and drive interest and excitement for their games in the competitive gaming market.
Operating plan: A detailed description of how the company will be managed and operated, including organisational structure, production processes, human resource strategies, and company policies and procedures.
The operating plan in the video games industry outlines the specific strategies and actions necessary to execute the business model effectively and achieve company objectives. It encompasses various operational aspects, including game development, distribution, customer support, and ongoing management. Below are key components to consider when developing an operating plan in the video games sector: