Unit 1 Assignment 2 - Business plan and Legislation

 Strategic planning for a Game company 

When it comes to strategic planning for any games company, an executive summary is a compelling overview of the overall gaming business and the games that are produced. It consists of a large document or report prepared for senior executives who need to understand the main points of the company. It provides the ideas of the company’s goals, visions, and key highlights. This would appear at the beginning of a business plan; however, it is often written after the other sections are complete. The plan should explain your strategy and key goals to get from where you are now to where you want your company to be in the future.  The executive summary should start off with the mission statement which clearly states the values and purpose of the games business. The executive should understand what the company hopes to achieve in the future. For this, you should express the long-term aspirations and the impact that the company seeks to make in the future. You should outline the primary goals for the company such as: achieving a specific market share, to create a game that will resonate with your target audience and have gameplay that align with the solution. To do this, you would have to understand the core of the experience and how the game would be both fun and effective for that target audience. Understanding exactly who you are making this game for is a critical step which can be undervalued, including age groups, preferences, and game genres of interest. For example, the target audience for a videogame business would consist of gamers, tech enthusiast and other content creators who are looking for immersive gaming experiences. Also, it is important to include unique selling proposition to articulate what makes the gaming business unique. This should highlight any innovative aspects of your game, the approach to the story and other bonus features. The executive summary serves as a first impression of the business ton potential investors and stakeholders who would be invested, which is why it should be compelling enough so they would be interested enough to dive deeper into the business plan to see what else the company is hoping to achieve. 

The description for the business would provide more in-depth information about the game company which would talk about the nature of the business, like the type of gaming business to specify the type of business it aiming to be like a game development studio, publisher, or platform. For the legal structure, you should provide information on ownership and the key stakeholders. The location of the business should also be mentioned and if it operates in multiple locations. The business description would briefly explain the game development process and should highlight any unique approaches that sets the development process apart. Another key section of the business plan would be the market analysis and strategy that delves into talking about the gaming industry, including defying the target audience, competitors and assesses marketing trends. For this, the owner needs to develop a comprehensive marketing strategy for the game promotion. While defying the demographics for the target audience, consider factors such as age, gender, and interests. You also have to consider the organization and management of the business plan. The plan not only showcases your game(s) but provides a comprehensive overview of your company, team, resources, finances and marketing strategies.  The next part of this business plan would be analyzing the game concept and development, which focuses on the specifics of the games that your business plans to develop like: detailing the concepts, development process and the key considerations. Your game concept should include exactly what the game is and what creating it involves. This includes the story, the art, and how you're going to make money with the game. For example, the game concept for Rocket League is the combination of arcade-style soccer and driving games, using rocket powered vehicles to score goals. It presents the game idea in just a few paragraphs to get people interested. The core idea should include: A description of your game, the game’s style, setting, the different types of characters, an overview of the story and what sets it apart from other games? The complexity of the game will determine how in-depth this area of the documentation is going to be. This section of the business plan provides potential stakeholders with a detailed understanding of the creative and technical aspects of the game development process. This would help stakeholders the type of games your company is aiming to develop and produce.

Financial projections use existing or estimated financial data to forecast your businesses future income and expenses. They often include different scenarios to see how changes to one aspect of your finances might affect your profitability.  As you develop your business plan, your financial projections will help you see if your business plans are realistic, whether you'll have any shortfalls and financing you may need. It can be useful to include various scenarios for each projection in order to help you foresee the financial impacts of each one. As your game business starts operations, compare your projections against actual results to check if your on target or if any changes need to be made. Monitoring will help you learn about your cash flow cycle so its easier to maintain. For monetization strategy, describe any subscriptions you plan to offer to be able to access premium content. You will also need to explain the benefits your subscribers receive such as early access and other exclusive content. If your company plans to release additional content, the plan should explain how it would all be priced and released. Addressing how your monetization strategy contributes to your company will help with long term sustainability for your gaming business. This part of the plan is crucial for how the business plans to generate its revenue while delivering content the players, which should align with the businesses overall goals. 

One effective way to gain a competitive edge is by conducting a market trend analysis. This analysis involves examining data to identify patterns and consumer trends in a particular market, like a games market, which allows businesses to make informed decisions about their strategies and offerings. Businesses like a games company use audience analysis to better understand their customers (target audience) to create more engaging content. Audience analysis can help companies gain new buyers and maintain customer loyalty. Taking an audience-centered approach is important because the company would be improved if the presentation is created and delivered in an appropriate manner. Writing a solid audience analysis for a games company business plan is crucial for understanding and targeting your potential customers effectively. To understand what the most popular is in the game market at the time, analyzing the popular games the audience currently plays and what consoles they use would help truly understand who your trying to produce for. A competitive analysis is a strategy that involves researching multiple competitors to gain insight in the products their producing, sales and marketing strategies. Even amid a busy schedule, though, it’s worth taking the time to do a competitor analysis. Lastly the best way to create a competitors analysis is by studying how your competitors are perceived, then you can draw conclusions about your own brand’s strengths and weaknesses and see how you can improve your overall business. It is important to be aware of the company's weaknesses as its just as important in helping your business row. Intellectual property rights in a business plan can help establish brand identity, along with preventing others from using your own products. You would then have to move on to planning your community engagement strategy. By taking time to listen to stakeholders and address their needs, you can build up trust and lasting relationships for your company.

https://www.wix.com/blog/how-to-start-a-gaming-business

https://empowered.gg/blog/business-plan-for-video-game-studio-guide/

                                                     Open world Vr business plan 

Business name: Virtual world interactive

Owners name: Harrison Coxon

Business Address and postcode: 123vr Street, Suite 456, VRT 7890

Business Telephone number: (555) 0123-5476

Business Email Address: H.Coxon@virtualworldinteractive.com

Home Address and Postcode: 626 Colton Road DRM 456

Home Telephone number: (555) 0987-65435

Personal email Address: Hcoxon12@gmail.com

Business Summary

The idea for an open world Vr business would aim to develop and publish open world vr videogames to create immersive experiences for the players who have a high level of interest in this type of game products. This would involve vast diverse landscapes that include hidden secrets, treasures and dynamic events that encourage exploration from the players. It would enable players to create a community of Vr enthusiasts and gamers to help develop their own virtual worlds. Multiplayer features will be included which enables collaborative gameplay, encouraging teamwork and socializing among club members.

Business Aims 

Long term business aims will include creating a place where players can experience and enjoy a vast amount of possibilities in the open world. Utilizing online platforms can help attract a wider audience. 

Finical summary 

Year 1: Revenue Projection

Game Sales: £2,500,000 (Estimated units sold x average retail price)

Downloadable content: £500,000 (Projected DLC sales)

In-game purchases: £300,000 (Anticipated revenue from virtual goods and upgrades) 

Total Revenue: £3,300,000

Year 1: Costs 

Development costs: £1,200,000 (Game development, programming, design)

Marketing expenses: £800,000 ( Social media campaigns, influencer marketing, events)

Personal salaries: £1,000,000 (Developers, designers, marketing team) 

Operational costs: £500,000 ( Office space, utilities, software liscences)

Total costs: £3,500,000

Net Profit/Loss: -£200,000

Year 2: Revenue Projection

Game Sales: (Anticipated growth, content ,updates ,improvements)

Downloadable content:£1,000,000 (Increased DLCs sales for a larger player base)

In Game purchases:£600,000 (growth in in-game transactions)

Total Revenue: £5,600,000

Elevator Pitch

Strapline: 'Immerse Yourself, Explore Beyond'

Elevator pitch: Our games transcend the limits of traditional gaming, immersing players in expansive, lifelike environments with unparalleled storytelling and interactive experiences. With a focus on cutting edge technology and a passion for redefining entertainment. Virtual world Interactive is set to become the go-to destination for gamers seeking the next immersive experience. 

                                                                        Background 

Why do I want to run my own business? 

The reason I decided to start running my own business is because I've always had a huge passion when it comes to immersive and entertaining videogame experiences. my interests include exploring virtual worlds, gaming, and experimenting with emerging technologies. These hobbies not only reflect my personal passions but also serve as a constant source of inspiration for creating unique and engaging VR experiences. The idea of running my own Vr business stems from a deep desire to be a forefront with offering users an escape into a limitless virtual realm. I am driven by the vison of delivering certain experiences to other players, that blend cutting edge technology with creativity. Over the past decade, i have been very immersed and invested in different virtual reality headsets like the Oculus for example along with the variety of different games it provides. As a VR enthusiast I understand the nuances of user expectations and am committed to delivering experiences that captivate and inspire. My passion for VR extends beyond the business realm, positioning me as a dedicated advocate for the potential of this software. With a diverse background in technology and Vr, I have achieved valuable work experience with developing and publishing my own videogame projects, both 2d and 3d, where I honed my skills in project management, strategic planning, and team leadership. These experiences have equipped me with a solid foundation to navigate the challenges of launching and managing a successful open-world VR business. I hold a level 4 for Creative Media study which involved certain skills such as game designing along with simple skills like teamwork and communication.

Recognizing the rapid evolution of VR technology, I am committed to staying at the forefront of industry trends. I plan to enroll in advanced courses focused on augmented reality integration, haptic feedback systems, and AI-driven simulations. These future training courses aim to elevate my business's offerings, ensuring that we remain pioneers in the open-world of a VR landscape.

Products and Services 

The creative virtual worlds that would be provided for players would be expansive and diverse enough so the players wouldn't feel that its too short and repetitive. These open worlds would also have regular updates and expansions which would also help keep players engaged over the long term.

 The market 

 When it comes to the demographic for my business, our target audience would be gamers who are enthusiasts seeking immersive experiences, Tech enthusiasts and gaming content creators. These players would primarily be aged between 18-35. This group would consist of individuals who would like to seek immersive experiences during their gaming. They would probably be interested in experiencing the latest technological capabilities, exploring the potential of VR, and pushing the boundaries of what is possible in gaming. The age range may vary, but typically curious individuals who have a strong interest in Vr and technology overall. Creatively inclined individuals who see the potential of VR games as unique and engaging content for their audience. They may also have a strong interest in storytelling within virtual environments. This would prompt them into spending money on this service as they would be invested into trying out these virtual worlds to see how it works out and how they can interact with other players. Creating visually appealing content, sharing updates regularly and engaging with the target audience will help keep them engaged with the content we produce.

Market Research

Market size and growth: The AR & VR market is projected to generate revenue of US$38.6bn in 2024. This market is expected to grow at an annual rate of 10.77% (2024-2028) resulting in a projected market volume of US$58.1bn by 2028.The virtual reality gaming market size has grown exponentially in recent years. Right now it is up to £19.62 million in 2024 at a compound annual growth rate of 28.5%. So right now there is a significant and growing market for the virtual reality market, which can have a great impact on this business. 

Key findings from field research:

Marketing strategy 

What are you going to do?	Why have you chosen this marketing method?	How much will it cost?
Utilize social media to build up awareness from target audience	Using platforms like Facebook and Twitter can help with building up d a strong online presence. Engaging with the gaming community, sharing teasers, updates, and behind-the-scenes content will help to generate excitement and awareness.	£500-£6000 per- month
Collaborations and partnerships	Collaborating with popular VR gaming influencers will help to reach a wider audience. Influencers can provide authentic reviews, gameplay footage, and recommendations, fostering credibility and trust among potential players.	$20,000-$50,000 per-campaign
Content marketing	This would involve developing a blog and creating informative videos. This strategy not only educates the audience about the game's features but also improves SEO, driving organic traffic to the game's website.	£5000-£10,000 per-month
Hosting virtual events and Demos	Hosting VR events to show demo versions of upcoming games would allow players to get an early experience this VR world and get a taste of what its like.	£15,000-£20,000 per-event
Paid advertising	Utilizing targeted online ads through platforms like Google ads and gaming related websites will boost advertising and awareness for the players who are invested in taking part.	£15,000,£20,000 per-month
Total estimated marketing budget		£78,000-£130,000 per-month

Competitor analysis 

Name, location and business size	Product/service	Price	Strengths	Weaknesses
Sony PlayStation Vr, San Mateo, California	PlayStation Vr Headset	£600-£700	Integration with the PlayStation Console, large existing user base, exclusive Vr titles	Limited to PlayStation Ecosystem, may not match the performance of high end PC VR systems
Oculus (owned by Meta) Menlo Park, California	Meta quest Headset, controllers	£300-£500	Strong brand recognition, diverse product range, exclusive content and robust technology	Dependency of Meta's ecosystem, some products may be considered relatively expensive
Viveport Tayona City, China	Vive Mars CamTrack	£4,800	Subscription service offers access to a wide range of Vr content, device-agnostic	Quality and quantity of content may vary
Valve Index Bellevue, Washington	Valve Index Headset, I fixit Valve Index Headset	£50-£300	High-end VR experience, excellent tracking, compatibility with Steam VR.	Relatively high cost, may require additional hardware for optimal performance
HP Reverb G2 UK	HP Reverb headset with controllers	£225	High resolution display, collaboration with Valve and Microsoft for tracking and controllers.	Limited exclusive content, may not have as extensive third-party support.

Swot Analysis 

Strengths The wide immersive experience would help set the business apart from other Vr businesses.  Open-world games allow for expansive and imaginative storytelling, fostering player engagement and satisfaction. A skilled and innovative development team with experience in VR technology, ensuring the creation of high-quality content.

Weaknesses There is a large variety of popular and successful businesses when it come to Virtual Reality which makes it tough competition to challenge.  The current adoption of VR technology is not as widespread as traditional gaming platforms, meaning its not as accessible for everyone.

Opportunities  I am dedicated to cultivating further with focusing on teamwork and communication to develop my projects further.

Threats Economic uncertainties can impact consumer spending on non-essential items like VR hardware and games. Rapid advancements in technology may render current hardware or software obsolete, requiring continuous investment to stay competitive. VR is known for being a quite an expensive piece of software, so not as many people would be able to afford it compared to other softwares in the industry.

                                                          Operations and Logistics 

Production

• Game Development process: Establish a streamlined game development plan including: concept creation, coding, testing and quality assurance. 
• Content Creation: Collaborating with a dedicated team who are familiar with graphics and story development will help with ensuring that we are developing a high quality content for the players gaming experience.   
• Testing and QA: Implement thorough testing procedures to identify and rectify bugs or glitches to further make sure the product is as polished as possible.

Delivery to customers

• Direct sales: Implementing a direct to customer sales model through the videogame website will give direct communication to the player base. 
• Updates and Patches: We will develop a reliable system for delivering updates to patch up certain bugs, and introduce new upcoming content. 

Payment and Method Terms 

• Multiple payment options: Credit cards, digital wallets, and other online payment options, to accommodate a diverse customer base.
• Pricing strategies
• Subscription models  

Suppliers 

Name and location of supplier	Items required and prices	Payment arrangements	Reasons for choosing supplier
Vr Hardware Supplier	Vr Headsets, controllers Sensors	Net 30 payment terms, potential discounts for bulk orders	Chosen for reputation, product quality, and favorable pricing
Game development tools	Software liscences Development tools	Quarterly payments, option for annual prepayment	Established tools widely used in the industry, strong support
Merchandise Manufacturer	Vr accessories, branded items	50% upfront, 50% upon delivery	This would include high quality manufacturing and experience with gaming merchandise

Equipment

		If being bought
Equipment	Item Required	Already owned	Purchased from	Price
Development Hardware	High performance PC's  Vr Headsets (Oculus Rift, HTC Vive) Motion controllers	10 units  15 units 10 units	Authorized retailer Manufactures, Distributors Manufactures, distributors	£2500-£3,500 £300-£1000 £100-£200
Testing and QA Equipment	VR compatible testing devices  QA Testing software	5 units Licensed	Manufactures distributers  N/A	£1000-£2500 Subscription feeds
Office equipment	Desks and chairs Computers and monitors  Audio equipment (Headphones)	15 sets 15 sets 10 sets	N/A N/A Electronics retailer	N/A N/A £50-£200
Server and hosting Customer support	Cloud hosting services  Dedicated services  Help desk software	Subscription 2 units Licensed	Service providers Server hosting companies  Software providers	Monthly feeds £500-£100 (each) Monthly fees

Legal Requirements

Business structure: I should choose a suitable legal structure such as proprietorship, partnership and corporation. The business should also be registered with the appropriate authorities.

Intellectual property: This includes any unique software algorithms, design or branding associated with my Vr software.

Terms of services and privacy policy: We should draft and implement clear and compressive terms of service and privacy policy documents.

 Accessibility compliance: I will need to make sure that my Vr software complies with the accessibility so it will be accessible enough for the players when it is available to them.

Advertising and marketing laws: I will also ensure that my advertising and marketing practices comply with the local regulations and avoid false or misleading advertising.

Health regulations: If my VR software has health or safety implications I need to be aware of and comply with relevant regulations.

Address potential health and safety concerns related to VR usage. Include warnings and guidelines for safe use.

Comply with regulations regarding VR technology, especially if it involves hardware components.

Insurance requirements

Intellectual Property insurance: Helps protect against claims of copyright or trademark infringement related to your game content.

Business Interruption insurance: Provides coverage for lost income and extra expenses if your business operations are interrupted due to covered perils, such as a fire or natural disaster.

Event liability insurance: If the business organizes or participates in any events showcasing our VR games, this insurance can cover liabilities associated with any possible accidents or injuries during the event.

Management and staff

Employment laws: Compliance with local labor laws regarding working hours, minimum wage, overtime pay, and employee benefits.

Intellectual property rights: This includes copyrights, trade marks and patents for game development.

Health and safety regulations: Compliance with occupational health and safety standards to provide a safe working environment for employees, especially if there are physical components to the VR game development.

Accessibility standards: Compliance with accessibility standards to ensure that the VR games are accessible enough to individuals who may have certain disabilities.

Costs and pricing strategy

	Product/service name	VR
A	Number of units in calculation	1000 Units
B	Product/service components	Development, Testing, Graphics, Sound, Marketing
C	Total product/service cost	£150,000
D	Cost per unit	£150
E	Price per unit	£300
F	Profit margin (£)	£150,000
G	Profit margin (%)	50%

 

Financial Forecasts 

	Month	1	2	3	4	5	6	7	8	9	10	11	12	TotaL
A	Month name	January	February	March	April	May	June	July	August	September	October	November	December
	Sales forecast
B	Product/service	12	14	17	21	28	34	37	41	44	49	51	58	406

 

C

Assumptions (e.g. Seasonal trends)

For this business, we would be providing a new online virtual reality service for players to fully interact with other players. Our customers would be individuals who would be able to take part of this virtual reality experience.

                                                             Personal survival budget

Section		Monthly cost (£)
A   Estimated costs	Mortgage/rent	£500
	Council tax	£100
	Gas, electricity and oil	£100
	Water rates	£50
	All personal and property insurances	£200
	Clothing	£50
	Food and housekeeping	£150
	Telephone	£100
	Hire charges (TV, DVD etc.)	£50
	Subscriptions (clubs, magazines etc.)	£50
	Entertainment (meals and drinks)	£70
	Car tax, insurance, service and maintenance	£150
	Children’s expenditure and presents	£200
	Credit card, loan and other personal debt repayments	£100
	National Insurance	£100
	Other	£60
B	Total costs (£)	£2030
C   Estimated income	Income from family/partner	£2000
	Part time job	£700
	Working tax credit	£300
	Child benefits	£200
	Other benefits	£100
	Other	£0
D	Total income (£)	£3300
E	Total survival income required (£)	£5330

                                                                            Cash flow chart 

	Month	Pre-start	1	2	3	4	5	6	7	8	9	10	11	12	Total
A	Month name	Month name	Jan	Feb	March	April	May	June	July	Aug	Sept	Oct	Nov	Dec
	Money  in (£)
B	Funding from The Prince’s Trust		500	700	800	900	1000	1200	1500	1700	1900	2000	2100	2300	146000
	Funding from other sources		5000
	Own funds		2000
	Incomes from Sales		3000
	Other		6000
C	Total Money in (£)		16500												165000
	Money out (£)
D	Loan repayments The Prince’s Trust
	Personal drawings
E	Total money out (£)
F	Balance (£)
	Opening balance		0	6500	500	1500	2500	3500	4500	5500	6500	7500	8500	9500	56500
	Closing balance		13000	11000	9000	7000	5000	3000	1000	-1000	-3000	-5000	-7000	-9000	2400

                                                                     Back-up plan 

Short term plan: Short term would be to focus on divesting revenue streams beyond just the VR gaming service and building a strong online community around this service. This could include offering VR equipment rentals, hosting VR gaming events, or partnering with other businesses for cross-promotion. We would gather feedback regularly  from players to identify areas for improvement in the VR gaming experience and work on addressing any technical issues, enhancing gameplay mechanics, and adding new features based on player suggestions. 

Marketing effects would be ramped up to increase awareness and attract more players to the VR gaming services.

Long term plan: Over the long term, we should focus on expanding the content library of the Vr service to keep players invested. This can be done by partnering with the game developers to license popular titles, as well as investing in the development of original VR games exclusive to the platform. Exploring opportunities for integrating the VR gaming service with other platforms and technologies will help to enhance the overall user experience. This could include compatibility with emerging VR hardware, integration with social media platforms for seamless sharing of VR experiences, and support for cross-platform gameplay.

Plan B

If it comes to the previous plan not being as successful, I should then start by evaluating opportunities to pivot the business modal towards alternative markets where VR technology can be applied effectively. This could include enterprise VR applications such as virtual training simulations, architectural visualization, or virtual meetings and events. I should explore other opportunities like for strategic partnerships or acquisition with established players in the VR industry or related sectors. This could provide access to additional resources, expertise, and distribution channels to help stabilize the business and facilitate future growth.

So in conclusion, Through the development and provision of an immersive online virtual reality service, we aim to revolutionize the gaming industry by offering players a platform where they can fully interact with others in captivating virtual worlds. We recognize that the competition for the virtual reality industry is growing, however, Through the development and provision of an immersive online virtual reality service, we aim to revolutionize the gaming industry by offering players a platform where they can fully interact with others in captivating virtual worlds.