March 2013 Financial Report
Written by Logress   
Monday, 08 April 2013 03:45

March Financial Report

by Logress » Sun Apr 07, 2013 10:43 pm

Finances are on my mind lately, with taxes and our recent hiccups with PlaySpan... and other news to be read about below. And they are no fun. But games are all about fun, so I think there should be a rule that game companies shouldn't have financials. I think that would work out just fine.

Before I go on, let me remind you all that my general goal has been make a sustainable average income, which I've set at the GP average (which evens out the money shoveling time they had with Christmas and Miku through their spiral downward). March was about 15% below average, which was a little disappointing because I felt it had the potential to hit average. Way better than Feb, though.


Royalties to Japan – off the top as always 

Server Costs – 8% (not higher, just a higher % because sales were a little lower)

Paying back Setup/Startup costs – 0%

Basic Contractors 8%

New Development (paying for developers beyond the core Apocoplay team or development software) – ???%

Set aside for possible chargebacks – 10%

Taxes, fees, legal/financial expenses – 10%

So the first thing you might notice is that we're throwing a wrench at the old "New Development" plan, at least financially. As those of you who have worked on any kind of development (or any complicated project, really) you know that you hit 80-90% and then it takes a huge serge of resources to finish it off. Our old plan of spending what we had available each month on development wasn't able to push anything past that barrier. To put it simply, you run out of money - you stop - then you spend X amount of money to re-start... but then you run out again before you get through the barrier and must repeat the process again next month. The "big push" becomes kind of like leaning on a brick wall. We've got a lot of partially finished projects that are still really far from being usable or launch-able (like the chat, which we just put up anyway).

It's clear we're not making any further progress without chunks of cash spent all at once, and that means it's time for us to put our money where our mouth is -- spend into our savings, take out loans, whatever it takes. I have some ideas up my sleeve already. Many of you have suggested Kickstarter, and while that sounds great, 1) the game it self is kind of like an ongoing Kickstarter already, and 2) we don't really have enough to show to get Kickstarter interest. We'll likely do one when we have a demo of Alteil 2.0 ready. 

Will keep everyone posted!