Question for established game companies

How is the current worldwide economic crisis, in particular the stock market crashes around the world, affecting your game development business?

I am personally very confused as to how to proceed with my own company. I'm currently trying to get some real funding for my game (one to two million) but in the current climate, I'm not sure that I'll get anywhere.

I'd like to discuss the economy with those that are part of it. Personally, I'd like to get some direction on how to move forward under the current climate.

When it comes to banks and getting funding, there's no way they're going to give loans that big now to unknown companies like ours, it's not the time to take such risks for them.

But I have to say the direct impact on my own company isn't huge... But it's been in hibernation-mode for about a year now, so that comes to no surprise. It's always been a serious-but-hobby kind of thing for me.

Sales did go down as far as any 3rd party projects I worked on and that's about all I can say about this,

Cheers

Its not a good time to get funding.

There are many cheap investment alternatives in the market right now

(for example blue chip stocks, wich are rated very low)

So there are many mature companies with a stable background
who have a low stockprice. So many good investment alternatives
compared to investing into a startup.

Also when you get funding, you are in a worse position, as the investor can claim more stake in the venture.
(given ownership and controll)

Just finished funding in the range you are looking for. Recent events actaully helped....

We have been doing this for a couple of years so the model is proven. That is an advantage for us over a start-up.

The return in the stock market is not good right now. As the market bounces around. The market in the US is down in value significantly from the start of the year.

So look for ways you can ensure a quick profit return of 10 percent per year and you will find alot of takers. Better than -20 percent in the stock market or 2 percent in the money market.

As I have stated in the past take the risk out of the equation. Build it, they will come.....

Ken

Thanks for all the replies so far.

I'm glad to hear you say that, Nard. There's been a lot of talk that investors may actually be MORE interested in us since we are less of a risk with higher returns than the market now and perhaps for years to come. But you are the first actual person that has said this from a successful point of view.

Good luck with your new funding; hold on tight to that cash!

Another factor that helped us, was to show revenue as early as Q2 2009.

I really think you should spend a week with Unity and test out it's MMO update.

We will be releasing Wiiware titles in 2009... That was part of our product pitch.

Also look into the Intel Partner program, they may be able to help you find channels.... You can sign up for free at Intel.com

Ken