A video game business is a way of generating income by creating an opportunity for gamers to play games. Typically, video game entrepreneurs earn by offering an entertainment avenue for gamers. However, as a new entrepreneur, here are some of the questions you may need to consider
- How does a video game business work?
- What is the market size of video game?
- What is the current and what will be the future demand for video gaming services?
- Who are your customers as a video game business person?
- Is video gaming a viable or profitable business idea?
- How much do you need to start a video game business?
- Where should you locate your video game business?
In this blog post, I will not only help you to find the answer to the first question, but also provide you with several resources from which you will get quality information regarding the rest of the questions as well.
So, how does the video game business work?
The video game industry is wide, but has three main niches. These include game developers, game publishers, game marketers, and buyers. The develop is the company that creates games. Some of the top players in this business include Ubisoft, Nintendo, Sony Interactive Entertainment, Epic Games, Activision Blizzard, Gameloft, Bungie, and Equare Enix. In Kenya, the key players in this sector include Elan Telemedia LTD, Kiss Dev, Lafont Innovation LLC, App Dev Services, Leti Alerts, Risivonne Investments, and Ruzz Graphics. In case you would like to find out more about these companies, I suggest you check this article for top game development companies in Kenya. Publishers are companies (mostly digital platforms) that publish a game on behalf of the developer while the buyers, obviously, are people who consume the game. Below are four creative ways you can use to make money as a video gamer
Option #1: Start a Game Development Company
Generally, starting a game development company requires a huge investment. From this article, you will discover that even running a small gaming studio will require you to invest extensively before you even think of meeting your accounting, legal, and advertising costs. Nevertheless, it may be possible to start your own gaming company, but the truth of the matter is that you have to be truly financially planned otherwise your investment will collapse within the first month of operation. You can check this Wikipedia article for a comprehensive list of commercial failures in video games so you can learn from their experiences and avoid the mistakes on time
Option #2: Start selling video games
So, now that starting a video game development company from scratch is challenging, what alternative do you have as an entrepreneur? My recommendation is that you should consider creating your own games and selling them online. This option will particularly work for you if you want to start small. Of cause, marketing your games can be highly challenging particularly considering that your game has to compete against strong brands. So, how do you overcome your marketing challenging as a video game seller? Here are a few recommendations:
The first strategy is the right focus. In this case, you will need to be really specific concerning the category of gamers you are targeting. In particular, make sure you are clear on your target market. For example, are your games targeting kids, youth, or elderly people? There are many online platforms to help you to make an informed decision concerning your target market. An example is the Grand View Research website from which you will discover which specific consumer category are likely to buy your games.Secondly, you may need to focus on social media marketing by making use of live streaming services. Both Facebook and YouTube offer live streaming services for gamers. For Facebook, you will find this service under Facebook Like Gaming. You can read about YouTube Gaming Live Stream at YouTube Creator Academic. With these platforms, you will be able to promote your game by allowing your target customers to watch your game live. Additionally, you should consider having your own blog where you not only write articles on video gaming, but also promoting and selling your games. Anyway, do you know that you can also publish your games on Google Play Store and make money when people download your games into their mobile phones? Here are some interesting facts about being a Google Play Publisher that may interest you.
Option #3: Start a video gaming center (physical or online)
If gaming is your passion and you are consistent enough, you can make money simply by creating, promoting, and selling your own games at a video gaming center. Also called a LAN Gaming Center, a video gaming center is a type of business in which you connect several computers over a local area network for purposes of gaming. This business allows to generate income by creating a video gaming location for gamers to play multiple games. There are so many benefits of and opportunities in having a LAN Game center that I cannot just go without mentioning a few.
- You will require a small amount of capital to start: As starting SME operator, you can be being with a few stations, say 10 or even five computers. Typically, you need between $500k and $1M to get a video center running, which will possibly take somewhere between 4 and 6 years to become profitable.
- You have the opportunity to offer additional services such as printing and photocopying to supplement your income.
- Your business can enjoy a broad range of clients provided you are ready to have a different kinds of games for individuals at different ages. Indeed, you will win big if your business offers the latest trending games to the gamers.
- Most people are unwilling to spend on purchasing games and there are so many reasons for this including the fact that some highly engaging games are expensive and require devices with particular specs together with a strong internet connection. This means that if your business is located strategically, more and more people will be willing to play at your center.
- You have different options for your pricing strategy including charging membership fee or fixing hourly rates.
If you choose to approach this business by establishing your center on the internet, you have even greater opportunities for success for various reasons. One, your center will be accessible to anyone, anywhere in the world, meaning you have a large customer base. Secondly, you’ll be minimizing on your monthly expenses by eliminating the need to rent a space for your clients. So, here are a few things to consider when setting an online gaming center
- Integrate a variety of languages to avoid limiting your customer base
- Have a secured payment system.
- Set reasonable prices –avoid overcharging your clients because the industry is extremely competitive and your clients could to your competitors for a better deal.
- Equip your station with the latest online games that are both interesting and engaging.
Option #4: Start delivering online gaming tutorials
The first question to ask is “are online gaming tutorials profitable? The answer is yes. There are many ways to you can provide online tutorials on games. When doing this, you will be a content creator. The good part is that you shall have overcome one of the major challenges an aspiring online creator may face, which is choosing the right niche. Since you already know your niche (gaming), you can decide to start a blog where you offer content on video gaming. Moreover, by having your personal blog, you will enjoy the opportunity of generating revenues through additional methods like affiliate marketing and from advertisers who place their ads on your site. Your tutorial can cover anything from how to play games to selecting the right game to avoiding gaming addiction. You can also choose to deliver your content or tutorial via YouTube in which case you will have to create a channel.
So, these are some of the ways you can make money if you are a video gamer who loves sharing your ideas with others. Remember to come back because I am working and will soon post a very comprehensive article that will provide you with more in answers to the questions in the above list. Please, share your comment and let me know what you think I should add!