Skills USA Entrepreneurship

CLASS: DATE OF SUBMISSION:

COMPUTER GAME DESIGN & PROGRAMMING SKILLS JUNE 1, 2015

TEAM MEMBERS:

DAVID MCALEESE

JASON GARCIA

DAVID GARCIA

JAZMINE CESPEDES

WEE World Educational Entertainment

WEE makes education happen!

EXECUTIVE SUMMARY Name of Business:

World Educational Entertainment (WEE)

Lead Artist/ Level Designer:

Jazmine Cespedes • Day-to-day leader of the design team • Create the visual elements of the game • Manage the art designer & the workflow

needed to create all game assets • Create the game world & game

functions for a game levels • Implement the designs from the design

documents into working game levels

Financial Manager/Project Manager:

David McAleese • Coordinates all lead managers • Ensures all project components are

on task & well managed • Oversees all marketing, advertising

and promotions • Evaluates customer research market

conditions & competitor data

EXECUITVE SUMMARY (cont.)

Game Designer/UI Designer:

David Garcia • Establish the rules of the game,

finalize the design claimants, &

ensure the game will work as

envisioned • Create controls that the player uses

to move & interact with the game • Design realistic UI designs that allow

the player to be immersed in gameplay

Audio Director/Game Writer: Jason Garcia • Conceive the concept, design &

theories of the game • Create character depth & interaction • Compose backstory, introduction &

dramatic information for the player to

understand the imaginary world that the game is trying to create

• Construct all of the sounds that add

depth to the game including active

sounds, background music & ambient

sounds

Why is this a good business

opportunity?

The video game industry is one of the fastest growing sectors in the U.S. economy.

According to the research firm, Gartner:

global video game sales will reach $111.1 billion by 2015

In 2013, in the United States revenues exceeding $21 billion

Entertainment software companies delivered well-paying jobs & revenue to

state and local economies across the nation

Video Game Market Revenue, Worldwide, 2012-2015 (Millions of Dollars)

Segment 2012 2013 2014 2015

Video Game

Console 37,400 44,288 49,375 55,049

Handheld

Video Games 17,756 18,064 15,079 12,399

Mobile Games 9,280 13,208 17,146 22,009

PC Games 14,437 17,722 20,015 21,601

Total Video

Games

Market

78,872 93,282 101,615 111,057

Video Game Industry Growth

In the past decade many schools have

welcomed educational video games

into their classroom and that number is growing

The educational video game market is growing fast

due to five factors

1. Better Technology

• 5:1 ratio of students to computer

• Bring your own tech programs (BYOT)

• Improved quality of the connectivity

2. Gamer Teacher

• The new generation of teachers were

raised on video games and are more

likely to use them in their classrooms

3. Academic Interest

• Video games part of the mainstream society

• Educators are seeing the possible

educational uses and benefits

4. Engagement

• Well designed video games are

engaging and for that reason,

educators are taking notice.

5. Money

• Learning games are currently a

$1.5 billion dollar market, with a

projected growth of $2.3 billion by 2017

The educational video game market

currently is strong and growing

WEE strongly feel that this is

a good business opportunity

with endless growth and possibilities

Customer needs

Our company satisfies the needs of our customers by…

offering comprehensive standards-based content educational video games

that are engaging, and entertaining

offering parents, educators and school districts an effective way to bring

21st century learning into the home and classroom at a low cost

The future of learning is now

Company Goals and Objectives

To ensure that our games are integrated with learning goals

• Provide up-to-date comprehensive standards-based content

• Provide educational video games that are engaging, fun, & entertaining

• Create a link between what is being taught in the classroom & real life

• Create games that are motivating & pose a challenge to the learner

To increase our brand awareness

• Increase target market base to include grades kindergarten through 12th

• Create customer referral bonus program

• Begin free monthly e-newsletter with educational gaming related topics

MISSION to educate the world in an entertaining way through the use of technology

Company Philosophy Every child has the potential to bring something unique and special to the world

Our role is to empower children with the tools they need to accomplish

this goal through the use of technology and engaging educational video games

Education can happen for every child

Nelson Mandela once said,

“Education is the most powerful weapon to change the world.”

COMPANY OWNERSHIP

WEE’s is a new start-up business, it is a Partnership

• We are friends who share a passion for video game development & a shared vision of educating children through the use of technology & gaming

Friendship makes our small independent company, better!

Permits & licenses needed to do business

To operate a partnership we need…

DBA: “assumed name certificate”

Certificate of Authority to Collect Sales Tax:

A registration authorizing the collection of sales and use tax on the sale of

taxable tangible personal property, rentals, specific taxable services and

purchases of tangible personal property for resale

EIN: an employer’s identification number will be secured from IRS

Trademark search: will be conducted by attorney to ensure that it is available and once it is

determined that it is available we will follow our attorney’s instructions in

protecting the name and logo

Owner-employee relationship

Currently has four equal partners and no employees

There are plans in the future to hire employees as the business grows

WEE will benefit our employees by…

• A competitive salary

• Offer medical insurance

• Be treated with respect & as part of the WEE team • Training to perform their jobs to ensure their success

• Help to stay on track while working together to make a better relationship

Commitment …..

to the community is at the heart of our business

• helps attract top employees

• gives our customers a positive feeling about our company

• give every child an opportunity to learn through technology

• work with parents, teachers and school districts to help bridge the

technology gap

This positive relationship will greatly improve our position in the market

it will help us grow and increase our bottom line

PRODUCT AND SERVICES

WEE’s products…

Downloadable comprehensive standards-based content educational video games

Download the product from the Internet to computer by using a key code

Downloads available for mobile devices through several distributors including…

ITunes Store, Google Play & Android device stores

WEE fuses cutting-edge technology & imaginative artistic expression

Computer code transforms ideas into rich expressions

of visual art, which come alive on a range of devices… consoles, computers, tablets & smartphones

WEE’s …. 14 Steps in our design process

Support your game

Select a distribution service

Release the video game

Test the game

Put it all together

Create some rough draft art

Create game assets

Build a prototype

Decide on an engine

Write the design document

List game features

Start with a core philosophy

Pick your platform

Pick your genre

Costs…

• Costs to produce games depends on the complexity of the design

• WEE currently has four team members (partners)

Four week build cost 160 hours x 4 team member = 640 hours

$25 per hour x 640 hours = $16,000

Pricing Strategies:

Developers are following a trend for pricing where they release two versions of their apps: a Limited Free version and the Full Premium version for a small price.

Majority of our competitors in the educational app market are using

The Paid Pricing Strategy Model to sell their apps. The price points for this type of educational app is commonly set at $2.99 per single download.

WEE’s educational apps are sold using the Paid Pricing Strategy model.

• Price point of $2.99 per station download

and • School site license at a cost of $50.00 for up to 25 computes.

Market Research:

A survey was conducted after a group of children (ages 6 to 12) &

their parents beta tested our newest educational video game (app)

After evaluating the results of our sample target market, we strongly feel

the app will be readily accepted into the educational video game market

and will be a commercial success

Target Market..

• Players: children, ages 6 to 12; 1st – 8th grade • Decision maker: parents, educators & schools

Competitors in this market:

the top three companies that we currently compete with…

Competitive Analysis & Unique Proposition Distribution Channels

Company School Age

Market

$2.99

download

School

Discount Googleplay ITunes Android Code Key

WEE YES YES YES YES YES YES YES

CrazySoft

Limited YES YES NO NO YES NO NO

JH Digital

Solutions YES YES NO YES YES NO NO

Educational

Resources YES YES NO YES YES NO NO

MARKETING PLAN

Our products are an intellectual property and will be sold solely

as a download from the Internet with no limit on the quantity

WEE will promote apps through the following channels…

• Company website

• Google Play

• ITunes Store

• Android Store

MANAGEMENT &

OPERATIONS • WEE does not require a storefront

retail space or an office space in commercial location

• WEE is an intellectual property

business that operates out of an office space near the partners’

homes

• The four-member team (partners) collaborates on projects & each

has specific tasks that they are

responsible to perform in order to

compete a video game build

Project Manager/Financial Manager David McAleese

Game Designer/ User Interface

Designer David Garcia

Audio Director/ Game Writer Jason Garcia

Lead Artist/ Level Designer Jazmine

Cespedes

Risks

Three risks that game developers need to be aware of…

Product Obsolescence

Privacy and Security Risks

Intellectual Property (IP) Protection

WEE will keep its finger on the of technology

Story behind a failed software developer- The Learning Company • Purchased by Mattel toy company to expand software product line

• Stocks at height sold for $46 – One year later sold for $12

• Mattel lost $200 million dollars in the first few months of ownership

WHAT HAPPENED???

The Learning Company had not developed any new hit games in several years &

was not keeping up with current technology trends.

pulse

FINANCIAL PLAN

First month start-up costs including one-time equipment purchases:

Operating Expense Chart:

Sales Projections

0

5,000

10,000

15,000

20,000

25,000

# of sales $ sales Total Sales

Single-Use Downloads

Site Licenses

WEE’s Monthly Sales Projections

Type of Sale

# of

sales $ sales Total Sales

Single-Use

Downloads 5,000 $14,950 $29,950

Site Licenses 200 $15,000

Record Keeping

We will use QuickBooks to track WEE’s business

Record keeping tasks include: • Storing customer and vendor information

• Tracking sales and expenses

• Creating customer invoices

• Receiving payments from customers

• Analyzing sales and expenses

• Organizing financial data for tax purposes

Investment outline

Terms of WEE’s loan: $50,000 at 8% over 5 years.

Loan Amount $50,000.00

Interest Rate 8%

Years 5

Monthly Payment $1,013.82

Total Interest Paid on Loan $10,829.20

Wee Investment Outline

Funds will be used for start-up cost • Computers

• Office Machines

• Software • Mobile Devices

• Internet Service & Data Plan

• Office Furniture

• 1st month’s salaries • Rent & Utilities

• Marketing & Advertising

Alternative Funding: • WEE consists of four partners • Each partner will be required to invest

$15,000 from their personal funds to

have an equal share in the business • Alternative funding total = $60,000

WEE World Educational Entertainment

WEE makes education happen!