Executive Summary



Little Big Dog Studio Business PlanJuly 21, 2013Copy SH-000-001Disclaimer:This document is for the information only and is not an offering for sale of any securities of the company. Information disclosed herein should be considered proprietary and confidential.The document is the property of Little Big Dog Studio Company and may not be disclosed, distributed, or reproduced without the express written permission of Little Big Dog Studio Company.Shane HenriksonHenrikson.Shane@BPLContents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc362189835 \h 4Company Description PAGEREF _Toc362189836 \h 4Company Mission PAGEREF _Toc362189837 \h 4Products and Services PAGEREF _Toc362189838 \h 4Development to Date PAGEREF _Toc362189839 \h 4Legal Status and Ownership PAGEREF _Toc362189840 \h 5Industry Analysis and Trends PAGEREF _Toc362189841 \h 5Industry Overview PAGEREF _Toc362189842 \h 5Target Market PAGEREF _Toc362189843 \h 6Target Customers PAGEREF _Toc362189844 \h 6Market Readiness PAGEREF _Toc362189845 \h 7Strategic Opportunities PAGEREF _Toc362189846 \h 8Competition PAGEREF _Toc362189847 \h 8Competitors PAGEREF _Toc362189848 \h 8Competitive Positions PAGEREF _Toc362189849 \h 8Competitive Advantages PAGEREF _Toc362189850 \h 10Future Competition and Their Barriers to Entry PAGEREF _Toc362189851 \h 11Marketing Plan PAGEREF _Toc362189852 \h 11Market Opportunity PAGEREF _Toc362189853 \h 11Barriers to Entry PAGEREF _Toc362189854 \h 12Consumer Needs PAGEREF _Toc362189855 \h 12Internet PAGEREF _Toc362189856 \h 12Events / Trade Show PAGEREF _Toc362189857 \h 12Sales Strategy PAGEREF _Toc362189858 \h 13Long Term Opportunities PAGEREF _Toc362189859 \h 13Technology Plan PAGEREF _Toc362189860 \h 13Operations and Management PAGEREF _Toc362189861 \h 14Efficiencies PAGEREF _Toc362189862 \h 15Management & Organization PAGEREF _Toc362189863 \h 16Financials PAGEREF _Toc362189864 \h 17Appendix PAGEREF _Toc362189865 \h 19Sources & References PAGEREF _Toc362189866 \h 20Executive SummarySome background on Shane Henrikson, He has made 4 video games from PC to the Nintendo DS, attending Full Sail University for my Masters in Entertainment Business. Shane has Recruited elite video game industry employees for top tier companies and was the first person at his 4-year college to successfully make a video game with people around the world. His connections have grown expediential in video games in the past 2 years. Additionally, He is an avid blogger and reviewer of video games ranging from independent games to serious AAA games. When there is news of the latest and greatest technology he has already covered it and reviewed it. His vision of crowdfunding will provide most or this entire project. He is a firm believer in equity-based crowdfunding and recognizes that video games will shift to this financial funding as a major source for independent games and their pany DescriptionLittle Big Dog Studio LLC is a video game developer that develops free-to-play video games. The company is based outside of Philadelphia , PA. Little Big Dog Studio specializes in free-to-play video games for entertainment systems and mobile pany Mission Little Big Dog Studio relies on its consumers. The relationship between the consumer and the developer has been broken. Little Big Dog Studio plans to reignite the past with new creative content and for free. A video game’s life cycle is short, so by delivering new content that the consumer wants for free is pleasing. The consumer has the choice of paying for in-game content that delivers an advantage over other players that didn’t pay. This in-game content is called micro-transactions, which is up to the consumer to pay for.Products and ServicesLittle Big Dog Studio provides products to the consumer. These products are based around the business model of free-to-play with full implementation of in-game advertising. The combination of those two models allows the company to be completely free consumer and still create revenue for the studio. The consumer has the buying option of customizing their own game with in-game items or downloadable content that costs from $.50 to $10, this is called micro-transactions.With the implementations of in-game advertisement the studio has the power of shopping around for sponsors. These sponsors will have their brand associated within the video game. The brand or logo will be displayed in the game where users are frequently going within the level. The in-game advertising display revenue ranges depending on placement of where the sponsor chooses. Little Big Dog Studio has figured a price range of $300 to $600 weekly per advertisement. Development to DateShane Henrikson is the founder of Little Big Dog Studio in Philadelphia, PA based on an LLC on June 1, 2012. As of May 6, 2013, Little Big Dog Studio has obtained: Design Documents (PPD & GDD)Intellectual Property (IP) rights to video game title(s)License and copyrights on the First Functional Prototype (FFP)Currently, the company is finding sponsors and consumer funded crowdfunding as an investment to successfully open the studio in June 2014. Legal Status and OwnershipLittle Big Dog Studio is operating under a Limited Liability Company (LLC), the company will regulate under the laws of Pennsylvania. Ownership of the company belongs to Shane Henrikson, the President of the company. The investors of the company will receive a percent of ownership under contract. Little Big Dog Studio has made no prior or present agreements to any partners or contracts. All software and game licenses must be attained before the studio’s opening. All designs, documents, intellectual property created from Little Big Dog Studio and its employees will be required to be submitted for copyright ownership. The ownership between the intellectual property (IP) and copyrights will be settled on a per project basis between the studio and the client. Partial financial backing has been provided by Shane Henrikson and various donations have provided research and document preparation. Industry Analysis and TrendsLittle Big Dog Studio has been changing its older methods of game development methodologies to adapt the rapidly changing free-to-play model within the video game industry. As the video game industry still revolves around the traditional output, Little Big Dog Studio will be among the first developers to specialize in the free-to-play sector. Little Big Dog Studio has been able to research fully where other developers failed with consumer relationships, content, and pricing. Little Big Dog Studio will become a major competitor within the nation and international marketplace as a provider of its product services. To the U.S. Census Bureau, Little Big Dog Studio is specified into three North American Industry Classifications. Little Big Dog Studio’s NAICS numbers are:?334614 Games, computer software, mass reproducing?511210 Software publishers?511210 Games, computer software, publishingIn the national market, Little Big Dog Studio’s largest competitors are:?Valve – based out of Bellevue, Washington ()?Zynga – based out of San Francisco, California ()?Riot Games – based out of Santa Monica, California ()Industry Overview Within the video game industry there are many developers that focus just on the free-to-play market. However, these games are not projected to a greater demand to a target audience or console publishers. The popularity of the free-to-play market is starting to make its path into the console field. First this business model was too much of a high risk but over time it has been proven that this model generates more revenue than traditional models. Taken from a mobile free-to-play data sheet, in 2012, the mobile devices of iOS ad Android applications generated a total of $5.4 billion across premium, in-app purchases and advertising revenue. The forcasts show a revenue that will grow by 60% over the previous year. Premium and in-app purchase revenue is also increasing at a rate of 50%, from $4.5 billion to $6.7 billion. This data taken from the mobile market can be easily doubled with the implementation i the console field. With the freemium model Little Big Dog Studio can monetize fundings through advertisements, upselling customers to premium content and ancillary products. The company’s competitor Zynga generated over 300 million monthly users on Facebook compared to a traditional game like Activision Blizzard’s “World of Warcraft,” that peaked at 12 million monthly active users. Among recent news, video game media outlets predict 70% of users in free-to-play games will drop. The issue behind this is player retention. The problem which is Little Big Dog Studio’s guidelines is the content and graphically appealing to the consumer. If the consumer leaves your game within the first 4 minutes of playing you’ll never see that projected audience member again. The need of quality over quantity is a necessity where the consumer feels they’re in control of the video game.Target Market2010 was the best year for the video game industry. As the video game industry continues to grow it continues to exceed previous standards. During the year of 2010, the free-to-play market was introduced from mobile to computer base. In 2013, the free-to-play market is starting to make its presence be known in the next-generation console development. As this business model grows, Little Big Dog Studio will be a forefront developer in the free-to-play market. The ideal market will be targeted more towards a mix of casual and hardcore gamers. The games developed at Little Big Dog Studio will not be for casual gamers because it will be more complex than traditional games, however, it will not be too complex that the learning curve might prevent people from playing. In recent years the industry has seen a new sport develop through the video game industry. This sport is generalized as eSports. eSports bring developers, audiences, sponsors to competitive and professional gaming. Through these events, the studio could sponsor local talent within Philadelphia, PA. The city has a population of approximately 1,500,000 in 2000. With these eSports events the studio can interact with sponsors and its target audience, which will be a great opportunity for spreading the studio’s name and product.Target CustomersThe studio’s main target audience will be focused towards males. The average subscriber to be between the ages of 25 and 34. Market segmentation is narrow to only PC users. Little Big Dog Studio wants teenagers to adult audiences willing to experience free-to-play games on a hardcore setting. Since teenagers are more willing to adapt, Little Big Dog Studio will be targeting this market first. After these early adopters take on the product. The studio can then transition the product to other audiences after the steady stream of consumers play the product. ?Age: 18-35?Sex: Male?Income: $0-40,000?Education Level: High School?Marital Status: Single?Family Size: 0-2?Ethnic Group: Caucasian?Home Ownership: ApartmentMarket ReadinessAccording to the ESA 58% of Americans play video games. Consumers spent $20.77 billion on video games, hardware, and accessories in 2012. The average video game player purchaser is 35 years old. According to the data released by The NPD Group, video game sales were strong in 2012, generating nearly $21 billion in revenues. $14.8 billion was contributed from in-game downloadable content. Most popular games were in the “Action,” category with 22.3% percent of all games sold. Also , according to the ESA, growth from 2005-2009 exceeded 10%. Over the same period, the entire U.S. economy grew at a rate of lest than 2%. The video game industry also continues to grow as a source of employment. Direct employment for the industry grew at an annual rate of 8.6%Strategic OpportunitiesVideo game consumers are always looking for the next big game that will deliver a better experience. Video game players are constantly checking their stats and rankings when comparing them to their “friends list.” Video game consumers are continually searching for games that they can beat their friends and family members at for “bragging rights.” Little Big Dog Studio will be able to offer more for these consumers online when away from their video game consoles. A section of the webpage will be devoted to ranks and statistics for users to check comparisons against friends and family members. As the game develops and gathers more users we will see a positive feedback and higher volume of consumers. CompetitionThe video game industry is highly competitive, from console games to mobile games. Free-to-play is a model that was born out of necessity in China because of piracy. Somewhat unintentionally, the game publishers who tried it -- Nexon, NCsoft and Tencent -- found it was overwhelmingly successful. (CNN Money 2013). Each game has a different design and creativity to it. Each video game is targeted to a particular target audience, some video game studios only produce games for early childhood, everyone, teens and mature. Big companies are now starting to target larger demographics in the free-to-play market as a social and casual field. Little Big Dog Studio is marketing themselves as a teen to mature free-to-play market. With $21 billion in revenues generated in 2012, Little Big Dog Studio plans to grab 1.5-2% of that figure when their product launches. CompetitorsThe major competitors that Little Big Dog will face in the free-to-play market are , Riot Games and Adhesive Games. These companies have dominated the free-to-play market with different business models. Riot Games so far has the best business model for the MMORPG games and has made a significant amount within their first yearly revenues. is another online multiplayer video game that dominated Europe and made its way to North America. Adhesive Games are a graphic appealing game which incorporates action and online multiplayer action in its free-to-play market. Digital Extremes are another up and coming competitor for the free-to-play market. This company released the first ever mission guided objectives. The reason why they’re such a weak competitor to Little Big Dog Studio is because of how narrow the target they projected. Unlike the other models where they’re open to an online community, Digital Extremes have narrowed the target audience from the design development in their game. Competitive PositionsWhen ranking these competitors from one to another then ranking them against Little Big Dog Studio, their strengths and weaknesses vary. Multiplayer ModelVehicular CombatConsole & PCLearning curve with User InterfaceGaming ModesNo TutorialRiot GamesMultiplayer ModelMultiple Gaming ModesRPG Only MultiplayerPC OnlyComplicated InterfaceAdhesive GamesMultiplayer ModelSimple User InterfaceMultiple Gaming ModesFirst-PersonOnly MultiplayerPC OnlyDigital ExtremesSingle Player ModelThird Person ShooterConsole & PC Single Player ModelNarrow Target AudienceComplicated is based around an online multiplayer vehicular combat system with historical tanks; known as World of Tanks. Users of this game have grown fond of this game because of its historical background. With the recent developments of this game, is now venturing into console development with the free-to-play model. The design features and in-game currency has new consumers turning away. Because of its popularity in Europe and crossing to North America, will have to redesign their game to tailor new consumers. Within their design the video game has such a high learning curve that consumers are automatically looking for other games to play. Riot GamesRiot Games is the number one free-to-play model in the video game industry. Their game design elements have put an almost perfect game, free on the market. Their RPG game called League of Legends at the number one position for free-to-play games. eSports are concentrated around this genre of game because of the high volumes of consumers it has. Because of the design, interface, and PC based features. The company has tailored this game to a hardcore narrow field. Even though it is generating a large profit, it could be making more if they open their style to a console port. Adhesive GamesAdhesive Games has just jumped into the free-to-play market with their game called Hawken. Hawken was produced by 14 video game vets that knew there was a demand for mech battles. Since the launch of this game, the media and other companies have been watching this company closely. With the simple design and in-game currency very cheap. The appeal to a target audience has been very attractive. The only problem that this company has is its PC only port.Digital ExtremesDigital Extremes are the first company to produce a single player game to the free-to-play market. Since this company is still very new, there is not a lot of information for this developer. They experimented with their design elements to see what would work and doesn’t work. They focused on the hardcore player to adapt to this game. It is the first single player guided mission that has in-game currency for the player to mold around. Because of the learning curve, lack of dedicated servers, and complicated interface—the casual player is immediately turned off.Little Big Dog StudioThis company is new to the field that has learned a lot from other free-to-play models. What this company has over the other companies are:Multiple platform / console based free-to-playSimple User InterfaceOnline TutorialsSingle and Multiplayer Game Play Elements This studio will be taking all the elements that went really well and incorporating them into their game design marketing petitive Advantages When scoping out locations for the studio, Philadelphia, PA presents a positive opportunity for the company. The IGDA of Philadelphia has a small base of independent studios. Bringing in a large triple “A” studio would create a large business and marketing development to the community. For example, when releasing a video game, the chances of outsourcing material locally is appraised then outsourcing to another state or out of the country. Since the video game is free-to-play, incorporating in-game advertisement for local businesses has a potential. A relationship between the studio and other businesses can create marketing media for Little Big Dog Studio’s presence in the city through small businesses. The idea of a video game studio generating revenue based on local media and advertising has not been done before. This business model should increase a greater view on the city and rejuvenate businesses that were hit hard from the economy. By keeping the studio small and local we can work on many original and new IPs for the consumers. The goal of the company is to provide a triple ‘A’ game to the masses. Through in-game content this empowers consumer over what they need or want available to them. Traditional free-to-play games do not have this production level to provide to the consumers and have not produced a game with multiple options. Little Big Dog Studio would like to see the consumer base grow through these availability options in the video games that are created. Future Competition and Their Barriers to EntryThe video game industry is always evolving with technology and the economy. With free-to-play games starting to come to console development, more attention is being sought out to those companies. The next-generation of video game development will bring a slew of free-to-play developers to a larger audience. One major competitor that is starting to look more seriously into this business model is EA games. Domestic retail sales of hardware and software fell 31% in June as compared to the same month a year ago, according to the NPD Group. (Bits 2009) They do already have free-to-play games on social outlets. With the funding that EA has, they could start bringing their IPs over to this model. With technology always improving and bringing a better performance to developers. There will be licensing for engines, software and publishing fees. Without these major three components a video game developer will not be able to get their product out to the public. The costs of game engines steadily increase as new technology pushes forward. Since the majority of the consumers is attracted to graphic appealing video games the demand will be high to purchase these game engines. Marketing PlanLittle Big Dog Studio LLC differentiates itself from other video game developers by offering free-to-play games with outside advertising in games. The studio develops games for a large audience from teens to adults. Little Big Dog Studio has multiple options in-game currencies for the intended consumer. Little Big Dog Studio provides quality games at quality prices. You buy what you want in the game instead of buying a game that you don’t need. LBDS company provides the same quality content as major triple ‘A’ studios. Market Opportunity The video game industry is constantly fluctuating around the economy, traditional prices are too high for the average consumer. While companies still produce game prices at $60, Little Big Dog Studio tends to today’s target audience. They have the option to buy what they want in the game, and how much of the product they want. Delivering reasonable high quality content at low prices. As mentioned before, the need for quality and quantity is a constant battle industry. To gain a loyal followers the company will need to catch the player by delivering outstanding content, that has never been done before. The whole length of the game will be cut up in series and with the release of new content brings back consumers and rejuvenates the product’s life cycle. Why pay for a game that you beat and then forget about it. Keep putting life into it and entertaining your consumer. More life equals more profit for a product. With the implementation of quantity can be experimented further when people demand more of the product, while still captivating the audience. With the right balanced material on content, micro-transaction, in-game advertisements, and initial pricing the target audience will see free-to-play games to be the next adventure in the video game entertainment industry. Barriers to Entry A following for a free-to-play market will be the greatest barrier to entry. The free-to-play market has recently been taking a loss of profit in the industry. Target audiences are turned off from this business model approach to a new generation of video games. Little Big Dog Studio will need to convince the need target audience that this studio is not out there to produce low quality games that you pay more micro-transactions than buying a full retail game. From the research and data collected Little Big Dog Studio will be able to provide quality content to consumers at a low price. Consumer NeedsToday’s video game consumer loves playing new games. They are attracted to a graphic appealing enriched multiplayer game. A leading and contributing factor for new consumers not buying a video game—is price. Pricing for video games have skyrocketed throughout the years. With today’s economy in 2013, the average individual cannot afford a newly released game. These consumers are the individuals Little Big Dog Studio is marketing to. The slogan “quality games at quality prices” is designed for the consumer and their needs, not the other way around.Video Game players also want:Cheap video gamesLongevity of product lifespan More contentMultiple ports for console & PC compatibility Up-to-date info on stats Strong developer to consumer relationshipLittle Big Dog Studio needs the feedback from the consumer to provide better content and a strong relationship. The design process is taken directly through the consumer’s needs and wants. Little Big Dog Studio is going to be using many resourceful marketing outlets that the target audience and potential clients search. The marketing strategy will attract from both spectrums and from this, LBDS will build its brand from. LBDS plans to spend $25,000 on this marketing plan. InternetThe internet is a major element of Little Big Dog Studio’s marketing plan. Our website is where you can gather the latest information about the game. Interactive screens, showing off the gameplay of the video game, a community for players to compare statistics, and a contact us section. LBDS is also implementing other internet marketing plans such as social media relations to give vital information and community feedback. These social websites will be constantly updated through social media sites like Facebook and Twitter. What the company needs is to be found on search engines like Google and Yahoo. The company will also find targeted keywords through SEO methods to have the consumer find the company more easily. Events / Trade ShowA large portion of the funding for the marketing plan will be going to events or trade shows like E3, GDC, or PaxEast. By funding and participating in these events and trade shows, the brand and company awareness grows. While attending these events the company can showcase their latest product to the consumers. With eSports shows the company can have more opportunity with consumer relations. As the consumer battles other consumers for a prize, the company’s product will get broadcasted through services like Sales StrategyFrom the marketing plan LBDS will attract consumers and clients. Consumers for in-game currency and clients for in-game advertising. Clients can contact the company to negotiate terms for ad-placing of their products or services. A sign up service fee will be part of a contract agreement. The money exchange will be based on how many times the Ads per viewed (APV) based around players in the match. A traffic monitoring system provides the company with APV to show contractors how many views their ad was seen by players. This is where a heart of the generated funds will come from, depending on locations and how many users will see it. Consumers will be given multiple options of the game(s). Either from buying it entirely or in parts. This depends on the consumer’s needs of the product. Some consumers want to have a competitive advantage over others. Through this process of in-game currency an additional revenue will be generated. Clients of in-game advertising will be able to view their product or service through in-game, a specially designed web portal, or on the company’s website. Special arrangements can be made for those clients that wish to place 2 or more advertisements in the video game. Contractors will pay Little Big Dog Studio $0.10 per 1,000 ad displays in the game. Little Big Dog Studio is open to work with any contractor that will with the startup company and does not hurt the image of the studio. Long Term OpportunitiesThe long-term goals of Little Big Dog Studio would be developing better quality games on the free-to-play market and keeping a relationship with our audience’s needs. The ever growing video game industry promises a strong revenue for this business model. With the revenue generated the studio will have the potential to open multiple locations. Little Big Dog Studio’s growth will overtake rival competitors that already dominate the free-to-play market. With the revenue the company generates, Little Big Dog Studio will be able to venture into other areas of the video game industry that have involved more risks. Risks are a major reason why many other companies fail because they don’t take them. Little Big Dog Studio’s brand will not only be a recognized label in the free-to-play market, it will expand to traditional business models and companies as well. With the revenue generated the company will be able to target audiences in free-to-play and traditional models with the growth that Little Big Dog Studio is projecting. Technology PlanWhen it comes to technology, Little Big Dog Studio relies on powerful computer machines for its development cycle. A video game consumes a lot of power, so it is essential to use the latest industry equipment and software to provide the products for the consumer. This equipment will help the company deliver the video game to the consumers. Backing up data is extremely important so having large servers to store personal data at the office is a better fit than through a service. Hardware(20) Windows 8 PC - 3.8 GHz, 8 Core with 30 GB of RAM(10) Wacom Cintiq 24HD touch(40) Asus PB278Q Monitors(3) HP ProLiant DL380p Gen8 Rack Server System - Intel Xeon(10) Playstation 4 Dev Kits(10) Xbox One Dev Kits()SoftwareAdobe Master Suite 2013Adobe Maya 2013Adobe 3dsMax 2013Adobe Mudbrush 2013ZbrushMicrosoft Office 2013Hootsuite SubscriptionVisual Studio 2008 ProfessionalUnity3d Engine()() TelecommunicationsGoogle FiberWebsite Made in HTML5With this combination of hardware, software, internet and website. Little Big Dog Studio will be among the top developers in the country. This combination pack will power the company 3-5 years before upgrading the hardware and software. As the company grows the demand for more products will be needed after the release of the first product. The website development will be built on HTML5. HTML5 is the latest industry trend for building websites. HTML5 allows for mobile and desktop computers to interact with the main site. The ease and comfortability will allow any user of HTML5 to develop a site for us. The company is a strong supporter of local college students take place as an intern within the company. Through this intern position, it is mandatory the intern helps grow the business through SEO practices and community engagement.Operations and ManagementLittle Big Dog Studios will be located in Philadelphia, PA. The plan is to have adequate office space for the employees. The square footage that the company has been scoping out is averaged out to be 4,000 square feet. This building will become the headquarters of the video game studio. This location will be strictly for the video game business only and nothing personal. The studio will work with owners of parking lots for the employees to access personal parking. While the studio’s employees are working, their cars will be safe with an on-site guard. Little Big Dog Studio does not want to officially own a building in Philadelphia, PA as of yet. The studio wants to get to know the culture and atmosphere of a video game developer in this city. The length of the lease is for 1 year at a monthly cost of $8,725. Restrictions policy of the building includes: No AnimalsNo more than 20 persons in the rented space.No Smoking When it comes to utilities and maintenance of the studio, the average monthly bill will cost $2,800. This is because of the amount of electricity used at the site. During the busy months of the Summer/Fall, the electric bill will rise due to focusing the deliverable for the holiday season and having the air conditioner to lower the temperature of the studio. Since the costs for video games are very high, the machinery that the studio is running will not be energy-efficient. The business office is where all the development stages of the video game is made. These stages are:Pre-production – research and development & concepts. Production – Data stringing art and programming. The strategy goes into development. Post-Production – Polished material and setting the release of the game(s) date. EfficienciesLittle Big Dog Studio is committed to bringing free-to-play video games to the consumers. Little Big Dog Studio will be using high-end computers to deliver valuable products. The company will need to overcome some frequent problems to improve its operations. With the addition of adding high-end computers, tablets, and software the compatibility issues will no longer be an issue. With the older computers, tablets, and software compatibility with programs and users were high. Special arrangements were needed for an employee or a consumer to work or play. With the Producer of this gaming collecting data and milestones, (s)he will be testing the quality of the product and making sure there are no bugs that can ruin the experience. When releasing the product to the consumer the digital inventory must be fully functional, bug free, and available at all times. Orders of the video game can be purchased through retailers like, Gamestop, Steam, and Amazon. Since servers tend to overload, having the product on multiple servers for larger crowds is a must. Little Big Dog Studio will be providing the best possible content to the consumer without cutting any expenses. Quality service through our webpage provides our consumers to connect to other users for any bug, compatibility issues, errors, ideas, and general discussions. Little Big Dog Studio values the relationship between the consumer and the product/company. Since Little Big Dog Studio is a product-based business we will be distributing the products we make digitally to wholesalers. There is no need to ship an actual product of the video game. The return policies are non-negotiable at a final sale. Since the product is free-to-play there is no need to ship a product to a consumer. The video game will require an internet connection to download the product and to play online. In-game micro-transactions are small assets that the user has available to them if they wish to purchase. The community/PR manager will be handling complaints and issues to solve any conflicts when an item is purchased. Through the company’s community forums the studio will be able to make improvements to the games we provide. The value of the consumer is more important than the financial return. This community forum on the website allows our strengths and weaknesses become present. Where the consumer found a part of the game pleasurable and where there is a high volume of complaints. Community forums are the new online data surveys for video games. Little Big Dog Studio’s products want to evolve around the consumer’s needs and wants. Management & OrganizationKey EmployeesAt Little Big Dog Studio LLC, there will be a president, producer, an art team, programming team, a sound designer and a web developer. The company also wants to incorporate local interns from colleges for these students to learn about the video game industry. Shane Henrikson, president – Shane holds an Associate and Bachelors Degree in Game Design and Development and a Masters Degree in Entertainment Business. Shane has plenty of experience managing teams, projecting scopes and completing deadlines through agile practices. His background is widely diverse and brings elements of SEO, SEM, leadership and solves any problems through analytics with team members.Consultants and Advisory BoardWhen it comes to any legal actions, agreements and contracts. The Little Big Dog Studio is proud to announce Patrick Sweeney as the company’s lawyer. Patrick Sweeney has been in the video game industry for many years when it comes to legal actions. The company requested Patrick Sweeney to be a part of the advisory board. Management StructureThe structure below shows the hierarchy of the business at Little Big Dog Studio. The company plans to grow in the next 5-10 years, which will need more positions. Any work that is needed but the company is already at maximum production level, they will outsource projects. 2584450130810President00President2616200763905Producer00Producer762001487805Art Team00Art Team12954001487805Tech Team00Tech Team25844501487805Sound Designer00Sound Designer38608001487805Web Developer00Web Developer51117501487805Interns00Interns30416505543550030480001176655002247900171005500102870017100550035369501710055004813300167195500FinancialsLittle Big Dog Studio is looking for investors that are willing to invest $2,257,000 in the company. The company knows this initial amount is a very large amount from private investors. This amount of funding will provide 3 years of financing. In exchange, Little Big Dog Studio will provide 35% of the company’s equity for 10 years. By offering this percentage and length of time, it will reassure investors to work with the company in the future, future projects and the possibly opening other studio locations. The video game industry is the highest paying entertainment industry and the free-to-play market is thriving for more studios like this one. LINK Excel.Sheet.8 "E:\\Henrikson_ Final_Financial Statement.xls" "r START-UP COSTS!R3C1:R59C7" \a \f 4 \h \* MERGEFORMAT AppendixSources & ReferencesGaudiosi,?J. (2013, June 4).?Free to play games - Fortune Tech: Technology blogs, news and analysis from Fortune Magazine. Retrieved?June?16, 2013, from International Business Times - Freemium Games Make Up 80% Of $10B Mobile App Market In 2012: Flurry Report: Business Times - Something For Nothing: How The Videogame Industry Is Adapting To A 'Freemium' World: - Free-to-play games developers should expect 70 percent drop in users: Source - () ()Richtel,?M. (2009, July 16).?Sharp Downturn for the Video Game Industry - . Retrieved?June?16, 2013, from The Entertainment Software Association - Economic Data. (n.d.). Retrieved?June?16, 2013, from U.S. Census Bureau: Game Industry Statistics Industry Figures, and Information - . (n.d.). Retrieved?June?16, 2013, from ................
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