Original or Licensed IP?
The argument rages on. Original IP (Intellectual Property) or licensed IP? And how much is your IP worth?

Stuart Roch just made an argument that "Original IP doesn't sell." Maybe so, maybe not. But there are some great counterpoints.

Scott Miller has made SEVERAL posts about the value of owning your own IP.

Game Developer magazine this month has an article about licensed versus original IP. Interestingly enough, 34 of the 40 top games of the past decade (1994-2004) were ORIGINAL TITLES. 17 of the top 20 were original titles. GoldenEye 007 was the sole licensed IP to break the top ten.

Warren Spector gave a speech at GDC last year that was somewhat controversial about his desire to crank out licensed games (You can see some post-GDC crossfire between Greg Costikyan and Warren Spector if you hunt a little bit at http://www.costik.com/weblog/2003_03_01_blogchive.html )

Does this apply to indies? Sure thing. We may not be in the position to work with A-list properties, but there are still opportunities. A few months ago Orson Scott Card signed a deal with eGenesis (indies responsible for the MMORPG "A Tale In the Desert) for a game based on his Alvin Maker series. 731 Studios recently obtained the rights to make a computer game based on the cult classic RPG "Macho Women With Guns." When I asked how he scored the license, Mario Bonassin answered, "I asked." Licensing existing IP is about marketing - its a brand that can bring you customers, make you stand out from similar but generic titles, and act as a "seal of approval" from the IP owner on your product. There are some great opportunities out there.

But switching it around - what value is there to being an IP holder? Especially as in indie when your sales are an order of magnitude below what the big boys would consider a flop. Is that even worth anything? There was a point where if someone turned around and offered me $5,000 to buy Void War - code, IP, and all - I'd have only asked where I should sign. Split it up with the team, have a pizza party, and call it good. And while the jury is still out, I think that would have been a terrible decision.

The game was not (and still isn't) a huge moneymaker. But there are a surprising number of opportunities that have come up because my company has successfully completed and sold a title, and because we own the game (and can control the fact that our company name is on it, along with everyone's name in the credits). Not all of these pan out, of course - but I'm floored by how many doors this opened, both for Rampant Games and for some of the indivuduals who worked on this project. Talking with other indies who have released games out there, I discovered I'm hardly unique. Even if you can't fully exploit the possibilities of your properties yourself - there are people out there who CAN, and by retaining those rights you are in a position to work with them, and hopefully make a little more money for everyone involved.

I think part of the reason the game development biz has started sucking so bad lately is that many professional studios undervalue their IP rights (a myth which publishers are oh-so-happy to promote and capitalize on). Likewise, a lot of beginners tend to overestimate the value of their own IP, expecting the world to beat a path to their door because they have some concept art and a blog.

In the last two years, I've had my eyes opened a bit concerning the opportunities that are out there for small, independent studios. No, they aren't easy paths to fame and wealth. It's a lot of hard work that I'm not always certain is worth it. But the potential is there. But a lot of it hinges upon you going out there and making it happen, thinking outside the box, networking with others - and seeing your projects through to completion.

Labels: Biz

- posted by The Rampant Coyote @ 9:32 AM (Permalink)