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What are the best ways to manage your game production budget?

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Managing your game production budget is a crucial skill for any game developer, whether you are working on a small indie project or a big AAA title. A well-planned and executed budget can help you avoid overspending, deliver your game on time and within scope, and maximize your profits and return on investment. In this article, we will share some of the best ways to manage your game production budget, based on industry best practices and expert advice.

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1 Define your game scope and vision

The first step to managing your game production budget is to define your game scope and vision. This means having a clear idea of what you want to achieve with your game, what features and content you want to include, and what quality standards you want to meet. Your game scope and vision will guide your budgeting decisions and help you prioritize your resources and tasks. You can use tools like a game design document, a prototype, or a pitch deck to communicate your game scope and vision to your team and stakeholders.

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Yegor Ostapenko

Game Designer | STALKER 2, GSC Game World | Designing Engaging Worlds & Mechanics
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Try to find a similar game and decompose it. How many 3d models, 2d art, sounds, animations, VFX and other assets are there? How many features/mechanics? If you have a team - ask them to estimate how much time they would need to perform the very same work. If you don't have a team - ask a few fitting freelancers or outsource agencies for estimates and costs. Try to figure the possible minimum budget, average (expected) and also the one that includes risks.

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Eva Tucker

Producer | Video Game Production | Women in Games Ambassador | Support Your Indies
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The reason you are supposed to define your game scope and vision is to prevent unnecessary expenses further on in the project. The scope should consist of everything that it would take to make the project go from concept to creation and it should follow along with the overall vision of the game. Scope is defined as a list of functions, goals, and the extent of work that needs to be done to finalize a project. Scope does indeed change though but the more you have added in the beginning, the better it is to budget the long haul. The vision of a game would be what you're expecting the game to come out as when completed. Of course this can change at the end, but you don't want that too much as it can completely throw a project off track.

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2 Estimate your costs and revenues

The next step to managing your game production budget is to estimate your costs and revenues. Your costs include all the expenses related to developing, publishing, and marketing your game, such as salaries, software licenses, hardware, outsourcing, testing, distribution, and advertising. Your revenues include all the income generated by your game, such as sales, subscriptions, in-app purchases, ads, sponsorships, and crowdfunding. You can use tools like spreadsheets, calculators, or software to estimate your costs and revenues based on your game scope and vision, market research, and industry benchmarks.

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Eva Tucker

Producer | Video Game Production | Women in Games Ambassador | Support Your Indies
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Now that we have our scope clearly defined, we can estimate the time and costs it would take to complete each item within the scope. The cost is reflected by software used, work hours, contracts with outsourcing, and all the end product marketing that happens when a project needs to hit the market. I've personally used tons of spreadsheets for calculations and it helped out immensely when it came to keeping money on track. List everything that occurs more than once and all one time expenses. The sooner its tracked the easier it is to calculate in case anything needs to be changed later on due to unforeseen obstacles to avoid the critical path.

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3 Set your budget and contingency

The third step to managing your game production budget is to set your budget and contingency. Your budget is the amount of money you plan to spend on your game production, based on your estimated costs and revenues. Your contingency is the amount of money you reserve for unexpected events or changes that may affect your game production, such as delays, bugs, feedback, or market shifts. You can use tools like charts, graphs, or dashboards to set your budget and contingency based on your game scope and vision, risk analysis, and financial goals.

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4 Track and monitor your spending and income

The fourth step to managing your game production budget is to track and monitor your spending and income. This means keeping track of how much money you are spending and earning on your game production, compared to your budget and contingency. You can use tools like reports, invoices, receipts, or statements to track and monitor your spending and income based on your game scope and vision, milestones, and performance indicators.

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5 Adjust and optimize your budget

The fifth step to managing your game production budget is to adjust and optimize your budget. This means making changes to your budget based on your tracking and monitoring results, feedback, and market conditions. You can use tools like scenarios, simulations, or forecasts to adjust and optimize your budget based on your game scope and vision, opportunities, and challenges.

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6 Review and evaluate your budget

The sixth step to managing your game production budget is to review and evaluate your budget. This means analyzing the outcomes and impacts of your budget on your game production, quality, and profitability. You can use tools like audits, surveys, or reviews to review and evaluate your budget based on your game scope and vision, achievements, and lessons learned.

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Eva Tucker

Producer | Video Game Production | Women in Games Ambassador | Support Your Indies
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My favorite section. Being able to go through and compare actuals v. expected is crucial to understanding how to continue budgeting for projects. The key is to reassess and learn after each outcome to improve and stay within budget. Too many companies have issues with this and end up putting too much money out due to issues in quality and development hiccups. These minor issues can cause huge impacts down the line which is why its essential to review the impact and outcome of each completed task within the scope. A proper budget should always have a backup or a risk management plan to prevent huge loss within the project and potentially get shut down.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the best ways to manage your game production budget?

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1 Define your game scope and vision

2 Estimate your costs and revenues

3 Set your budget and contingency

4 Track and monitor your spending and income

5 Adjust and optimize your budget

6 Review and evaluate your budget

7 Here’s what else to consider

Gaming Industry

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What are the best ways to manage your game production budget?

1

2

3

4

5

6

7

1 Define your game scope and vision

2 Estimate your costs and revenues

3 Set your budget and contingency

4 Track and monitor your spending and income

5 Adjust and optimize your budget

6 Review and evaluate your budget

7 Here’s what else to consider

Gaming Industry

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