I’ve worked on one electronic toy, 4 games - 3 of which were released - the last one I just finished up work on is slated for release this Christmas.
I'm currently working right now on an IP of my own. Here's a couple of things to look out for.
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The video game industry is nervous. The market is flooded with shit games (PS2) and the price of software is threatening to come down dramatically in the next few months yet the cost of development has not. A number of bigs are looking at the lower platforms to hold them over as the gap years begin again (those awkward times when the public is between platforms Xbox or Xbox2? PS2 or PS3? G5 Mac or PC?), that always threatens small and medium companies.
2. Larger companies are not buying smaller companies like they used to.
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As for launching an IP its tough and its expensive. Publishing is a mess and it does not pay well - and the ancillary revenues are almost nonexistent. Everyone wants Halo and they aint giving, and many of the other titles have not lived up to expectations - i.e. games like Res.Evil, Tomb Raider all fell short of expectations and have poisoned retail.
4.Get an agent and all non-disclosure materials applicable. Even if you sell it to a publisher or developer let your agent do the dirty work. Besides, it’s almost like you cant even show the property to a company these days without an agent.
Is it worth it? Hell yes. I mean, if it hits, you can write your ticket.