MSc Computer Games and Entertainment BUSINESS AND PRACTICE. Prof William Latham. Goldsmiths College (University of London).

Transcription

1 MSc Computer Games and Entertainment BUSINESS AND PRACTICE. Prof William Latham - Goldsmiths College (University of London).

2 Lecture 5 MSc Games and Entertainment. Business and Practice. IS71025A Date Oct 27 th Prof William Latham

3 MSc Games and Entertainment. 1. Analytical Skills. Generic Skills for analysis for games industry Step Analysis, Comparative Analysis, Statistical Analysis, Risk Analysis. 2 The Standard Development Process. Concept > Prototype > Alpha > Gold Master > Master Approval. Topics we will cover:- 3 Production Processes. Waterfall, Scrum, Code and Fix << Last Week. 4 Contractual. Analysis of Existing Games Development Contract between Developer and Publisher. (COD Case Study). << Last Week. 5. Analysis and Mechanics of a Standard Royalty Model. (Boxed Product). << This Week. 6. Basic Business Models. As flow diagram. 7. Security:- Escrow and Backups of Game Data and access criteria. 8. New Business Areas. Eg. Social Networking, Facebook Games and other business models.

4 MSc Games and Entertainment. 9. Basics of creative Game Design. 10. SPVs. Special purpose vehicles and financing. 11. Further Basic Business Models. 12. Creating a Business Plan (Generic) and How to Start a Business. 13. Cash flow and financial Projections using Basics Business Models. In Excel. 14. Resourcing and costs on computer games Development. 15. IP Intellectual Property. << David Kuper. Lawyer. Last 2 weeks of term

5 Escrows and Data Security.

6 Korean MMO deleted during server repairs A Korean MMO has been taken permanently offline after the game's data was deleted during essential server maintenance last month. M2, run by developer Sankando and operator Hangame, was taken offline on the 21 October to deal with a widespread data problem, reports IgxPro. During the server maintenance which ensued, vital information was deleted from the game's database which could not be restored and had not been backed up externally or elsewhere. Because the free-to-play game operated largely on funds from premium items, some "selective compensation" has been offered to players for lost purchases.

7 PROBLEM 1) Games Publishers are generally disorganised in terms of storing, normally stuck in filing cabinet. 2) Developers are disorganised at times due to deadline pressure.

8 Standard Back Up Procedures used by Developers. SourceCode. Proprietary Tools Assets in all states. (Low and High Resolution). Copies of Middleware, eg. Unreal, Max. The asset Logged and signed for at each location. Used Trusted Employees CEO Home. 2 nd Office Location. Fire Proof Safe. Safety Deposit Bank Vault. Eg. Metropolitan Safe Deposits in UK. Quite rare

9 But needs to be highly organised, so that build is created each month and then deposited, often done immediately after Milestone Deliverable is made.

10 Developers are highly protective of their source code. So how does one get round this:- SOFTWARE ESCROW. Similar to money escrow except software.

11 Software can escrowed but also:- Documents, designs, trade secrets, Legal Documents, Money.

12 Escrow Services

13 Main Software Escrow Suppliers. 1) Iron Mountain 2) Escrow Associates 3) InnovaSafe 4) EscrowTech 5) NCC Group. National Computer Centre.

14 ESCROW Company Fees. 1.Set Up Fee, including use of their set of agreements (can be multi party). 2.Legal Costs normally fixed. 3.Standard Escrow Drops cost. 4.Full Verification. Normally based on Estimate. 5.Release costs. 6.Provide Insurance.

15 For smaller projects a Legal Firm can manage Escrows. ie. Code is held by firm and released to relevant parties based on release conditions, based on law firm legal judgement.

16 ESCROW Back Up Procedures used by Developers. SourceCode. Proprietary Tools Software Escrow Escrow Firms:- NCC, Iron Mountain. Assets in all states. (Low and High Resolution). Copies of Middleware, eg. Unreal, Max. The asset Viewed by Funder eg. Value $5m. ROUTE 1. Standard Escrow Deposits made by:- Fedex. Online FTP or similar Developer Legally confirms (warrants) that a full build is being deposited. BUT it is not checked, needs trust Quite low cost. A few hundred dolars.

17 ESCROW Back Up Procedures used by Developers. SourceCode. Proprietay Tools Software Escrow Escrow Firms:- NCC, Iron Mountain. Assets in all states. (Low and High Resolution). Copies of Middleware, eg. Unreal, Max. The asset Viewed by Funder eg. Value $5m. ROUTE 2. FULL Verification Escrow Deposit. On Site Collection by Escrow Co engineers at Developer or off site clean build A full build and compile is performed, matched against tests on target hardware. All machines discennected from network, Over 3 to 5 days High Costs. $8K plus Not relying on trust you know is there exactly.

18 CHALLENGES ESCROW Full Verification is BEST, but:- 1)Is expensive. 2) Happens late in development to capture worth while code. Normally at Alpha, Beta. Sometimes 50% Build.

19 CHALLENGES So normally on a development project eg. That is 20 months long. There will be over development period:- 14 to 16 Standard Escrow Deposits. 1 to 2 Full Verifications. Ideally 2 Full Verifications, one at 50% Build.

20 ACCESS OF ESCROW. (Normally when things go wrong)l Criteria for Access. 1. Developer Bankruptcy 2. Repeated MS Delivery Failure. 3. Whatever reason is agreed between parties.. 4. Developer cannot prevent. Software Escrow Release Conditions, in Legal Document. Publisher Bank Bond Company

21 ACCESS OF ESCROW. (Normally when things go wrong) Criteria for Access. 1. Developer Bankruptcy 2. Repeated MS Delivery Failure. 3. Whatever reason is agreed between parties.. 4. Developer cannot prevent. Developer A Software Escrow Release Conditions, in Legal Document. Fails Escrow contents released Publisher Bank Bond Company Developer B to complete

22 Developer A SourceCode. Proprietary Tools Assets in all states. (Low and High Resolution). Copies of Middleware, eg. Unreal, Max. Escrow contents released Developer B to complete Vital everything is captured, why full verification is important.

23 Developer A SourceCode. Proprietary Tools Assets in all states. (Low and High Resolution). Copies of Middleware, eg. Unreal, Max. Escrow contents released BUT can be hard if Developer B picks up late. Better if Unreal or Unity. Sometimes SPV is set up. (SPV Stands for Special Purpose Vehicle). Developer B to complete Commercial Release.

24 Escrow Companies, offer additional services. Open Source Due Diligence EscrowTech's CodeMiner Service EscrowTech now provides an Open Source Due Diligence service known as CodeMiner. EscrowTech scans software (source code and object code) to detect the presence of open source programs. EscrowTech generates a report that discloses the open source programs and their corresponding licenses. For example, if the software includes code from an open source project licensed under the GNU General Public License, the report will identify the open source project and the applicable GNU General Public License. The report provides valuable and actionable information to venture capitalists and other investors and their attorneys.

25 QA