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Opportunities in the Board Game Industry

January 21st, 2017 Posted in business, general
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A recent post on a forum asking if it was a good idea to start an online game store had me thinking.  The simple answer is no (definitely not in America, not so great in Canada either really).  However, the fact stands that there are a significant number of opportunities in the industry currently which don’t involve direct retail of board games.  I figured I’d detail some of them here (at least from my view point).  Note that I don’t, in most cases, have direct experience so it’s an outsider perspective.

1.  Game Reviewer

Firstly, let’s start by saying that there are only a few reviewers out there who do this full-time.  This is a long-term play as you need to build up enough of a fanbase that they would be willing to pay for you to continue development & publication.  It took us nearly 4 years (over 100+ videos) before we ran our successful Patreon campaign and even then, at $400 per video which came out every 2 weeks, it wouldn’t really be enough for most people to live on.  However, we also only published a video every few weeks and focused on significantly higher production values than most game reviewers, so if you had the time, ability and funds to do this for a year (or two), it should be possible to make a full-time career from it.

The advantage of this is that you’d be playing games constantly unlike other parts of this business.  After all, part of your business is playing games  The negative is that it takes a lot of time to create a video review, so you’d be on a constant ‘mill’ of content development.

2. Game Accessory Retailer / Manufacturer

An interesting area that has cropped up is the development and sale of game accessories.  Whether it’s sleeves, tokens or inserts, there does seem to be some demand for this.  My guess is that the actual margins on producing and selling multiple tokens is quite high once you get past the set-up cost.  The negative is that you are targeting a small portion of an already small market, so I’m not sure there’s enough of a market to generate a decent income.  On the other hand, if you can combine this with sales to publishers for their prototype designs, there could be a decent business here.

3. Publisher

This is probably one of the two areas that I’d certainly look into more significantly if I had the time and capital.  With Kickstarter available these days, capital requirements are actually significantly lower than previously (I’d guess between $3-5k per game for artwork, design and testing and prototypes to be sent to reviewers).  Risk is significantly lower as you are able to crowd-fund the cost of publication to start.  The major disadvantage (beyond the significant time investment to find and playtest games) is the time-lag.  It seems to take between 8 to 12 months to produce a game and most backers would prefer to see the delivery of their first game before you begin Kickstarting a second game.  As such, until you’ve developed a significant following (and/or have a decent hit for a game), your income is likely to be pretty low for the first few years.

4. Game Publishing Management (ala Game Salute)

Game publishing management is something I haven’t seen since tried since Game Salute.  Rather than being a full publisher (purchasing rights, developing the art, etc.), that there might be a space in the market for someone to work as a contractor to aid in the marketing, design & manufacturing and importing of the game.  Certainly it’d require quite a bit of knowledge in this area and and it’d be tricky to work out compensation.  If you charged an hourly rate, you might not be as attractive to a new publisher, but if you did it on a commission basis, you run the risk of a failed Kickstarter (or low funding Kickstarter) since you aren’t personally choosing / editing the games yourself.

5. Distributor

This is really only for those with a lot of money and probably not in the USA. I know at least in Canada, we could probably do with a well-funded West Coast distributor and I’m sure there are significant opportunities for distribution in other countries.  When I say a lot of capital though, I’m talking in the millions.

6. Game Cafes / Restaurants

The hottest trend in retail is game cafes & restaurants.  This seems to be quite profitable if you could can locate a good spot that is large enough and can be staffed regularly.  This is the other area I’d recommend putting money into if you had the desire to get involved with the game industry.  Unlike publishing though, this requires significantly more retail.   From my estimatation, you probably need at least CAD$30k to barebones launch a business and I’d really not want to get involved without at least $60k.  Comfortably, you’d be better of with $100k.

7. Rulebook reviewer / editor

If you’re reading this, you know how many bad rulebooks there are out there.  If you have the skillset to write good rules, this is probably a good market to get into.  This is however (like being a cover artist / board designer) something that is very skill dependent.

8. Game Designer

Unless you become a publisher yourself, most game designer’s aren’t able to make a living just designing board games.  On the other hand, you don’t have to put up a lot of money for this and who knows, maybe you’ll design the next Pandemic / Catan / Scythe and end up raking in royalties forever.

9. Comprehensive Board Game Website (competitor to BGG)

Everyone thinks the design on BGG is horrendous.  They’ve been working on a version 2 of the site forever.  So far, no one has come up with a serious competitor to the site but considering the sheer volume of advertising / marketplace sales and industry information there is, I would have to say there’s a significant revenue source here.  Of course, this requires specific skillsets, a decent capital bank and reliable servers, but I’m sure there’s a business case in here somewhere.

10. Kickstarter Fulfillment

We do this as Starlit Citadel Logistics.  There is certainly money in this business, but it is fast getting extremely competitive in Canada & the USA.  Outside of those countries, South America and Asia seems wide open and potentially Europe (or at least, there’s no leading player in Europe from what I understand).  The biggest barrier to entry in this area is shipping cost.  Many of the established players are able to get significant volume discounts from the courier companies and as such, unless you have an existing business that does a lot of shipping, this could be a major disadvantage.  Other things to watch out for in this business is that income is not predictable – you could do 3 Kickstarter’s in a week and then nothing for a month or 3.  Lastly, most Kickstarter’s break out (from what we’ve seen / been told) into the following volumes – 60% USA, 10% Canada, 20% Europe & 10% everywhere else.  If you assume most Kickstarter projects fund at the 1000 backer level, there’s only a small number of shipments everywhere but the USA which means you’d need to get a significant number of projects signed up to make a decent living.  Then again, there are always the mega projects (Kingdom Death anyone) that help pay the bills for months…

 

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  1. 6 Responses to “Opportunities in the Board Game Industry”

  2. By Lucas on Jan 30, 2017

    Hi, i’d like to know more about how to create a online store. I live in Montreal, and i have no idea how to start. I understand that looks like difficult to have a board game online store, but i actually would like to dig deeper and see it myself. Could you point me to articles or something more focused on the Canadian market?

  3. By Tao on Feb 3, 2017

    If you click on the ‘business’ side of the articles, you’ll find that I occasionally discuss this. To build an online store, you’ll need to deal with 3 major things:
    – getting suppliers and stock (and space to store those products)
    – your online store software. There are a ton of options, I’d recommend you do your research to figure out which option works best for you.
    – the marketing to customers which includes figuring out what your USP would be.

    Outside of that, I really recommend you read general e-commerce articles to better grasp the space you need. As an online store, the majority of the specialised knowledge you need isn’t so much about gaming products and the gaming industry but the online store creation itself. Practical Ecommerce is a great start.

  4. By Miranda on Feb 16, 2017

    I’d be interested in any ideas you have on how to get started in becoming a paid rulebook reviewer/editor. I’ve done a lot of work in this capacity on a volunteer basis (for Kickstarter projects for instance), but I don’t know where to start doing this for money.

  5. By Tao on Mar 11, 2017

    I’d look at talking direct to publishers and designers about this. I’d target the larger publishers / not first timers in general since they might not want to spend the mone on this. I’d also look at integrating yourself into the various designer communities out there.

  6. By Jason Cheng on Mar 22, 2017

    Hi, I am looking into starting a board game rental company focused mainly in my local area. I have been researching board game cafes, store set ups, etc. Many stores do have an option to rent a game for a % of the MSRP, and the only exclusively rental board game company I have heard of is board game exchange. The biggest foreseeable issues would be the high risk of stolen, lost, damaged pieces and the general demand for renting board games. My long term goal is to eventually open up a board game cafe as you had listed in your post, but in the meantime, as I build up a collection, I thought it would be a good idea to start a rental business. Do you have any thoughts on this line of business?

  7. By Tao on Apr 5, 2017

    It could work. We use a game rental library ourselves and we haven’t had a huge amount of movement on it. It’s a nice supplement for our income but it’s not enough to really pay for itself very well yet. We’ve not had issues with lost products, just missing items like missing rulebooks and the like.

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