The Cost of Doing Business in the Game Industry

Kenney Mencher

Sometimes I feel like someone's reading my mind. In my line of work I really need to put myself in the shoes of the company CEO.

Even though we are all passionate about making games sometimes the bottom line counts. Some stuff I consider before deciding my fees and pitching a company to a prospective employee is that they too have to understand and be invested in the profits the company wants to earn.

ESPECIALLY if you are going to work in a start up you may want to consider what the CEO is worried about.

I absolutely love this article:

What does it really cost to open an indie studio? All your money, most of your life
by Guillaume Boucher-Vidal

I've cut and pasted the most salient statistics here:

Kenney Mencher

BREAKDOWN OF COSTS

• Initial costs:
• Incorporation: $500 (Varies by location, does not include attorney fee)
• Equipment (per workstation)
• at least $800 per PC (that's not high-end stuff, just good enough for the job)
• $150 per monitor (you need 2 monitors per person)
• $20 per mouse
• $20 per keyboard
• $100 per desk
• $80 per chair
• roughly $1800 in software licenses
• Total: $3120 per person

Not to mention:

• $1,000 or more for a company laptop (You'll eventually need to be portable)
• $200 for a printer/scanner
• $80 for business cards
• $3000 for miscellaneous stuff (paper, ink, router, tools, air conditioner, gaming peripherals, etc)

Ongoing costs:

Kenney Mencher

• Rent/electricity: $776 per month
• Cellphone/internet access: $180 per month
• Bank fees: $20-40 per month
• Insurance: $250 per month
• Salaries: about $3250 per employee per month (includes taxes and other "hidden costs")
• Other costs:
• Participation at PAX East: About $8,000 total
• Legal fees: About $3,000 per year
• Accountant fees: About $3,000 per year
• Music: About $150 per song, prices vary greatly
• Sound effects: $10 per sound effect, prices vary greatly
• PR Firms: $1000 per campaign, prices vary greatly
• Travel expenses (not counting PAX): About $2000 per trip, depends on location and timing

That's a very basic overview of the costs to start and run a studio.

Kenney Mencher