I have been involved in the startup world since 2014. I’m the co-founder of a health tech startup that was initially established in Mexico. We accelerated its growth through both Mexican and American incubators in Silicon Valley. Given my background, I have a good understanding of the dos and don’ts when I interact with other startups, especially when I’m invited to join their teams.

In February of this year, I joined the marketing department of an independent studio that was developing a very ambitious and cool game. This game was set to be their primary focus for the next couple of years.

Unfortunately the studio had to close down because of several issues and problems that kept it from staying alive until launch but after the downfall i couldnt stop thinking about some of the known and not so known problems that have plagued other studios as well.

Please note that I won’t be mentioning what I think made this studio close or what those reasons may be because only upper-level knew what was going on. But I can safely assume that maybe one or two points I will be mentioning may be part of those reasons because it is something very common not only in games but in startups in general.

By learning and discovering these mistakes, I really hope that you can avoid similar pitfalls and increase your chances of success.

Here are some of these harsh realities:

Overambitious First Projects

One common mistake I’ve seen is when studios tackle incredibly ambitious projects as their debut title. While it’s natural to have big dreams, industry trends suggest that starting with a smaller, more achievable project can be a wiser approach. A successful initial release can pave the way for future projects and gain recognition from the market and investors and of course gamers. Starting with a massive hit right out of the gate can present significant risks for both the studio and its investors.

Oversized Team and Delayed Launch

It’s important to carefully manage your team’s size and project timeline. I’ve encountered studios that grew rapidly in terms of team size without a solid plan or revenue stream. This can result in substantial monthly expenses, especially when team members receive regular salaries. Investors may find these numbers alarming, especially if the revenue is not expected to start coming in for a while, even after the game’s launch. Of course taking into account if the game will be a viable success or not. It’s crucial to strike a balance between team size, project scope, and financial sustainability.

Genre Changes and Community Loss

Once you announce a game, it’s important to maintain consistency in its genre. Changing the genre can lead to confusion and disappointment among your community. Your community forms around their specific preferences, and altering the genre can cause you to lose their support. If you realize that the defined genre is beyond your current resources, it’s better to be transparent and let the community know that it may be a secondary stage in the game’s growth, which may not be available at launch. This transition should be as subtle and clear as possible.

Neglecting Marketing

Marketing plays a crucial role in building awareness and generating buzz for your game. Unfortunately, some studios prioritize other aspects of development and neglect marketing efforts. It’s important to share the game’s progress with the community and engage them throughout the development process. Gamers are passionate about the journey, and by keeping them informed, you can build a dedicated following. Don’t underestimate the power of marketing in creating anticipation and excitement for your game. Also, dont forget about us **wink* **wink**

Choosing the Right Investors

When seeking investors, it’s important to find partners who not only provide financial support but also understand your business and share their expertise. Some studios make the mistake of solely focusing on securing funds to survive until the game’s launch. While financial support is crucial, having investors who align with your vision and offer more than just money can greatly benefit your studio’s growth and success.

Lack of Minimum Viable Product (MVP)

Developing a minimum viable product is essential for showcasing the core features and selling points of your game. I’ve seen studios that were well-advanced in various areas but lacked a strong MVP. It’s important to prioritize the development of the key mechanics that make your game unique and enjoyable. This allows you to demonstrate its potential to publishers and potential gamers, making it easier to market and pitch your game effectively.

If you find that your studio or team is close to some of the points mentioned, it’s crucial to assess and address these issues before it’s too late. With the right strategies and a strong foundation, you can set yourself up for a brighter future.

Thanks for reading

This post was written by Aron G. Katz Founder of GamemarketingXP.