PROJECT STUDY ON ESTABLISHING A GAME DEVELOPMENT STUDIO I.

NAME OF THE PROJECT Limacon Studios

II. LOCATION OF THE PROJECT The proposed location of the project would be a prime commercial property located on Lacson Street, Bacolod City.

III. DESCRIPTION OF THE PROJECT Limacon Studios will provide Windows application development/support, PlayStation4 development, XBox development, 2D and 3D art and visual effects, and project guidance. Limacon Studios is a game development studio formed by veterans, Engr. Benedict Salazar and Engr. Frederico Sibug, Jr. As developers of the best-selling and critically acclaimed "Gamasutra" series, Limacon Studios talented core team members will produce fifteen titles together, and have individual experience with dozens more. Limacon Studios is committed to creating high-quality, innovative, successful games and software. The following services will be offered:

Game concepts and development for PC, PS4, XBox, Pocket PC. Game platform ports: PC/PS4/XBox/Game Boy. 2D and 3D art, programming, libraries to spec. Interface design and software enhancement. Cohesive, talented development team with years of experience shipping products together.

Proven track record: Gamasutra series has over 3 million units sold to date. On time and on budget shipping.

The production team will have five years of successful product development as a team. Individually, the group will have experience and will contributed to form amazing products. It is believed that the company will be well positioned to be a valuable resource to gaming companies that are seeking cost-effective ways to implement a gaming design mission that will meet projected completion dates. One of the greatest obstacles will be the ability of the production team to perform without wasted effort and resources. Limacon Studios will have a documented history of completing its projects under budget and on time. The mission of Limacon Studios is to provide the highest quality service through the development of innovative, exciting products to the interactive entertainment industry.

IV. HIGHLIGHTS OF MAJOR ASSUMPTIONS A. MARKET PROJECTION TARGET CUSTOMERS Limacon Studios has a simple market projection. The plan defines three target segments, namely: gaming cafes, gaming stores/shops, and home gamers, and the forecast projects how many potential customers are in each of those segments by years, for five years. In the market projection, the numbers indicate that there are 50,000 home gamers included in the market, and that number is growing at an estimated 10 percent every year. There are also 5,000 gaming cafes and 1,000 gaming shops/stores, growing at an estimated rate of 6% and 4% per year, respectively. The chart below offers a visual representation of the Limacon Studios market projection for year 2014 to year 2018.

Market Projection for 2014 - 2018

90000 80000 Number of Customers 70000 60000 50000 40000 30000 20000 10000 0 2014 2015 2016 Year 2017 2018 Gaming Cafes Gaming Shops/Stores Home Gamers

SALES STRATEGY Limacon Studios anticipates that sales will start during the third month. The first two months of operation will have flat sales. After that point, sales will increase.

120000000 100000000 Sales in PhP 80000000 60000000 40000000 20000000 0 1 2 3 4 5 6 7 8 9 10 11 12 Month

SALES FORECAST

The following is the sales forecast for five years. The owners will have agreed not to take a salary for the first three months of the operation, and during this phase all five owners will be involved in sales.

1.6 Sales in PhP (Billions) 1.4 1.2 1 0.8 0.6 0.4 0.2 0 1 2 3 Year 4 5

B. MARKET SHARE Limacon Studios plans to produce 100,000 games copies every year and that would contribute to about 12.3% of the Game Development Market as shown.

Limacon Others

Moreover, Limacon Studios will contribute to the following Game Development Trends as shown.

20%

50% PC 30% PS3/4 XBOX

C. MARKET PRICES TITLE OF GAME Empyrr Kratos: The Rise of the Demigod Luna the Windblower Nefertiti: The Queens Journey Son of Ra Warlords Ghost Rider Samurai Showdown Blade X Shutter Breed your Dragon Cardioid Rifle Run PRICE IN PhP 2,700 2,700 2,200 3,500 3,500 2,200 2,700 2,700 2,200 3,500 2,200 3,500 3,200

Gooey Katrina and her Toe Nails (Limited Edition) Xers Map of China (Limited Edition) Chu and the Killer Octopus (Limited Edition) Ben Meets the Bald Man (Limited Edition)

2,200 4,500 4,500 4,500 4,500

D. INVESTMENT COSTS E. METHOD OF FINANCING

V. SUMMARY OF FINDINGS A. MARKET FEASIBILITY According to a report from X Play Online Games, Inc, recent sales indicate that the video game market is poised for impressive growth. The report forecasts that annual unit sales of video games and PC games in the Philippines is expected to grow over 40% from 2014 to 2020. The successful introduction of new game systems meant that the industry was able to avoid the major downturn in sales that has occurred in past platform transitions. According to X Play Online Games, Inc, the industry should experience another year of record sales in 2014. The interactive games industry is a major economic force. With an estimated global value of some PhP 1.5 to PhP 2.5 trillion, the industry rivals neighboring Southeast Asian countries in revenues and is now recognized as a propulsive force behind the creation of markets for information and communication technologies. Games account for nearly one-third of consumer software sales in the Philippines. TARGET MARKET SEGMENT STRATEGY

Not only was the video game market not slowed by a softening economy or the terrorist attacks, as what recently happened in Zamboanga. The total Philippine video game industry grew from Php 1.6 billion in 2012 to Php 2.3 billion in 2013. It is estimated that by 2014 the three leading games systems, the Sony PlayStation 4, the Microsoft Xbox and the Nintendo GameCube, should have combined Philippine sales of over 6 million units. The report forecasts strong sales for all three systems. There are currently 300 gaming companies that are producing games for one or more of the leading gaming systems in the Philippines. While strong market growth is predicted, there are also many challenges facing the interactive entertainment industry. Sales of the Philippines in terms of the total interactive entertainment software market, which includes PC entertainment and video game software, approached Php 1.1 billion in 2013. Console and portable software sales rose 8.3 percent in unit sales, while PC entertainment software experienced a unit increase of 3.8 percent. The main challenge is that while unit sales are expected to rise rapidly, development and marketing costs are also soaring. SERVICE BUSINESS ANALYSIS Companies are combating development costs by outsourcing segments of the development project. Currently, it is estimated that 30% of project work is outsourced. There are a number of advantages to this strategy. By outsourcing, companies can take advantage of a tremendous gaming experience base without paying the personnel price tag to retain the talent on payroll. By negotiating a price for the outsourcing, companies can also cap development cost. More importantly, as few larger companies compete in the marketplace for dominance, a number of service firms will emerge to fill the demand for quality developers that are necessary for specific projects, much like the rest of software industry. It is estimated that product development in the

software industry can save upwards to 30% of development costs by outsourcing key elements of the development process. COMPETITION AND BUYING PATTERNS The interactive game industry is based on the hype that is created by core players. The ability to create a product that satisfies the gaming demands of core players is a critical consideration when outsourcing opportunities emerge. This unique cultural aspect of the industry influences how companies outsource. Technological expertise is secondary to the ability to create a product that the target group will immediately be comfortable with. Companies are looking for production track records with products with similar play devices that were focused on similar target users. Typically, a selected group of firms are asked to submit proposals for the outsourcing assignment much like an ad campaign. The firm with the best ideas and the best talent to implement the idea gets the contract. Over 80% of the interactive game companies have outsourced segments of game development. This represents a client base of 400 companies. Currently there are a lot of firms that compete for outsourcing contracts in the interactive game industry. Because of the unique cultural aspect of the interactive gaming community, companies specialize in gaming devices or user groups in order to gain advantage in the proposal process. The team's track record is the most important pivotal issue when competing for outsourcing contracts. A firm that has an intact team that has achieved past project goals has an advantage in the bidding process. Production companies are looking for assurances that deadlines will be met and the quality will be there. The production of a game is on a tight schedule and any missed deadline will ripple effect over the entire project, and could result in missed revenues and increased expenses. COMPETITIVE EDGE

The competitive advantage of Limacon Studios will always bring in a project before the projected deadline. As noted, one of the greatest challenges will be production costs. Nowhere is this more critical than with outsourced projects. If a company can produce by deadline, they will get more work. MARKETING STRATEGY Members of the Management and Production Department will approach the distribution companies that are currently distributing video games. A marketing CD will be created for these presentations. The members should have begun the process of presenting their company's services to gaming distributors companies. The team will create a presentation program that will be the centerpiece of the marketing program. The company should have been successful in acquiring contracts with the top game advertising and distribution companies in the Philippines. The company will then continue to aggressively pursue new contracts. B. TECHNICAL FEASIBILITY DESCRIPTION OF PROCESSES AND OPERATIONS The project will be able to provide customers with the highest quality service through the development of innovative and exciting products to the interactive entertainment and gaming industry. The project shall produce a minimum of three (3) games per year. Since the target market of the project will be gamers, it is proposed to have a Memorandum of Agreement (MOA) between the game distributors and advertisers to have the games of Limacon Studios promoted and publicized. This will ensure continuous popularity of the game development studio, and will eventually convince customers to buy the products.

The video games will be created in such a way that every gamer could relate to the game concept. Thus, prior to plan of action in making the game play, there would be surveys to be carried out to know the game interest of the majority. Moreover, there should also be monthly feedbacking to be done about the customers reviews and reactions to the game in order to know the things to be rejected in the next game concepts.

PROJECT EQUIPMENTS The proposed equipments to be acquired before the project be implemented are as follows: 84 sets of computer (complete with programming, animation, editing, and publishing softwares) 9 sets of printer with scanner 4 units of telephone

The owners will canvass first on the prices of the equipments to qualified and trusted suppliers. Moreover, bidding will be done, and the supplier with the best offer gets the priority.

These equipments will be used by the employees of the Limacon Studios to ensure smooth operation of the business. It is proposed that there be 3 computer sets and 3 printers/scanners for the 3 Lead Artists, 15 computer sets for each of the 15 Junior Artists, a computer set and a printer/scanner for the Development Manager, 3 computer sets and 3 printer/scanners for the 3 Content Developers, a computer set for the Head of Audio, 5 computer sets for the Sound Designers and Coders, two computer sets for the Quality Assurance Testers, 2 computer sets, a printer/scanner, and a telephone for the Executive Producer, 45 sets of computer for the Marketing Specialists, Web Designers, and Web Developers, 2 computer sets and 2 telephones for the

Executive Assistants, and a computer set, a printer/scanner, and a telephone for the HR Officer.

Here is the complete list of the personnel needed for the project:

Activities Creating the game characters as well as mentoring junior artists Creating the game characters with the guidance of the Senior Character Artist Monitoring progress as well as the development of the game Designing and building quests, puzzles, stories, and mechanics that the gamers will enjoy and appreciate so much Managing and scheduling a team of sound designers and coders Developing music, sound effects and voice-overs throughout the game Testing game content to ensure that it is free of bugs and errors, as well as analyzing game content and provide relevant, constructive, and varied

Department Responsible

Person In Charge

Art

Lead Artist

Art

Junior Character Artist Development Manager

Design and Development

Design and Development

Content Developer

Design and Development

Head of Audio

Design and Development

Sound Designer and Coder

Design and Development

Quality Assurance Tester

feedback in order to maintain the highest level of quality Managing the time and budget for the project, as well as building the infrastructures to support the project, and planning, providing goals for teams, identifying and mitigating risks, managing priorities and urgent problemsolving decisions. Devising efficient ways to promote and to advertise the product, and coordinating with the web developers and designers for advertisements to be put in websites Designing and building all the websites for the business Developing company branding and print designs Ensuring that staff members are fully briefed for visits, appointments, meetings, and conference calls, and be a central point of contact for the team, their staff and external contacts Ensuring that technologies are performing well and are functioning according to what Office and Facilities Technical Support Personnel Office and Facilities Executive Assistant Design and Development Design and Development Web Developer Management and Production Marketing Specialist Management and Production Executive Producer

Web Designer

they are designed to be Recruiting, Hiring, Training, Organization, Development, Communication, Performance, Management, Coaching, Policy Recommendation, Salary and Benefits, Team Building, Employee Relations, Leadership Human Resource (HR) HR Officer

C. FINANCIAL FEASIBILITY http://www.slideshare.net/Reymar27/project-study-on-establishing-lending-business18725428 http://www.bplans.com/computer_programming_business_plan/market_analysis_summ ary_fc.php#.UwuRgM6IphAs