Game Development Community

IPhone Licensing Model Discussion

by Brett Seyler · in General Discussion · 08/14/2008 (2:15 pm) · 73 replies

Hey guys,

I thought a long time about doing this, but I've decided that I want some some early feedback from those of you interested in licensing Torque for the iPhone before we set up a licensing model to roll with permanently. Building an effective, fair licensing model is a tricky thing to do. To give you some perspective, the costs for getting TGE and TGB ported are pretty considerable. We're talking about 3 full-time devs for nearly 3 months. If you do the math, it's a significant investment, but one we're proud to have nearly done at this point. We expected interest in the product would be high, but it's outpaced even our most optimistic assumptions. Many of the inquiries have been from you, our core users who take game development seriously, but aren't making millions at it yet. It's always been our mission to enable you to reach the next level, and making games for the iPhone could be a really great chance to do that at a minimal cost. In the past, getting games on a phone required huge hurdles, so "hitting the big time" usually meant making a great PC game and getting picked up to put your game on a console or two. With the iPhone, this could be much easier. There's no dev kit to buy except the iPhone or iPod Touch as a "dev kit" and of course you have to work on a Mac (unless you're really crafty...more on that later) which some people already do. Pretty nice!

So while it's important for us to be able to recoup the investment in porting TGE and TGB and to be able to continue funding improvements to the SDK, it's even more important that we don't close the door on any of you who are serious about making iPhone games with Torque. Originally we had planned to roll out a licensing model very similar to what we have for consoles (Wii and 360), but we're not absolutely glued to that. What I want to do here is open a discussion about what you all would like to see in terms of licensing Torque for iPhone development. I promise I'll take your feedback into account and in the end, we'll try to make the best decision we can for you.

As a frame of reference, here are some possible models we considered:

$15k unlimited titles, no royalty
Pros: Clean, simple, actually much less expensive than our console licensing of Torque
Cons: A bit high for many Indies

$5k / title, no royalty
Pros: Clean, simple, still a fraction of our console pricing
Cons: Still a bit high for Indies

$2-3k / title, 10% royalty
Pros: A bit more affordable for serious developers
Cons: Royalties can be a pain to track and Apple's already taking 30%

$500 / title, 30% royalty
Pros: Definitely affordable for anyone shipping games
Cons: Royalties for the same reasons as above

Obviously the latter choices would allow us to license Torque for the iPhone to more of you, so that's appealing, but we can get creative with this if we want too. Let us know what you think. Nothing's written in stone here. Again, goal #1 is be able to pay for the work and continue to fund improvements to the SDK. Goal #2 is to get this in as many people's hands as possible.

Please share your thoughts in a constructive way. The floor is now open for discussion. Thanks in advance guys.

About the author

Since 2007, I've done my best to steer Torque's development and brand toward the best opportunities in games middleware.

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#61
08/20/2008 (5:14 pm)
What I would like to see honestly is an indie option that eliminates the entry risk and allows a single developer to try a few things and maybe get lucky and produce one game that really takes off, in which case the commercial license is not too expensive anymore.

Have you guys maybe considered an indie license like

$250 - $350
unlimited games
no royalties
maximum combined profit on the appstore for all published games < $15000

And if the profits exceed $15000 you would have to buy the commercial license for $15000.

That would allow an indie tinkerer to try to get something started and if they get lucky and succeed they will have to re-invest their profits into the commercial license.

Edit:

Just saw Brett's announcement on his Blog. I think those options are very reasonable as well. Glad there is a decent Indie option, thanks guys!
#62
08/20/2008 (5:54 pm)
Making over $15,000 means they have to invest everything? Wow. That's a pretty extreme licensing fee! We get 100% of your profits if you have a sweet hit. Then you're back to zero and get to build it back up, hoping it sustains itself (or your next project does).
#63
08/20/2008 (6:11 pm)
@David: I wouldn't consider a game that makes $15k a sweet hit, for me it's all about a hobby financing itself with the opportunity to become more. Hence the desire for a low, risk free entry level. And should something become even semi popular ( i.e. break even ), I wouldn't mind investing that in a royalty free commercial license for future titles.

But I think the options Brett posted on his Blog are more than fair.

PS: A sweet hit is something like Desktop Tower Defense, $100k in ad revenue over 1 year.
Simple game, simple idea, for some reason became a huge hit.
#64
08/20/2008 (7:02 pm)
I would consider N+ a hit since it cost more than DTD made in ad revenue to port it to the 360. But that's splitting hairs.

Taking away 100% of a dev's profit margin is steep under most circumstances and often closer to draconian publishing deals in the traditional industry where the publisher owns your soul and you have to fight to even break even on a break-away hit as a team.
#65
08/20/2008 (7:44 pm)
Brett, the license fees on your blog on right on the mark. The entry fee for indies is fair and a set price per game is much preferred to paying royalties for eternity. I can't think of any reason you won't sell a ton of these licenses.

Nice.
#66
08/24/2008 (12:48 pm)
I agree the fees are definitely fair.
Everyone not thinking so should buy TGB Pro and try to port it over himself and he will pretty fast learn WHY it is more than fair.
#67
08/24/2008 (3:23 pm)
I'm going to copy this here from Bretts blog for Brett.

Brett, you get the:

68.233.5.139/~transfer/Pics/seal-1.gif
#68
08/28/2008 (9:12 pm)
The pricing announced here www.garagegames.com/products/307/ seams good to me. I have a couple of questions:

As a TGB indie binary only license holder, do I have to upgrate to TGB Pro before I can buy iTGB?

What is the benefit of pre-ordering? If the only benefit is - 'we might raise the price later, so pre-order now at this low price' then I'm not going to pre-order. I'd rather have that $500 sitting in my bank account and if you bump it up much higher than $500 I probably won't buy it at all. In Brett's email it says pre-orders will also receive an additional release license (effectively getting $100 off) but that's not mentioned on the pre-order page itself.
#69
08/28/2008 (9:20 pm)
I was wondering about the same thing, too. I just purchased my TGB license earlier today in preparation for iTGB (glad to see they just announced it, too - talk about perfect timing). However, I don't see or have any need for the Pro version either, as I'm developing just fine with the current setup and preparing my game for the iPhone screen resolution.

I would like to pre-order immediately, please clarify and correct if necessary. Thanks!
#70
08/28/2008 (9:32 pm)
Hey guys. I just posted a new blog up that addresses exactly that (among other things). The short answer is yes, you need TGB Pro to purchase iTGB.

iTorque Update

edited because I forgot the link...
#71
08/29/2008 (12:46 pm)
@Brett

I just found out that Torque is being ported to the iPhone and I can't wait for its release. This will save me lots of headaches from finishing and optimizing my "just started" game engine. As for the price, thanks and no matter what they say it's still very fair to us indies. Also good job on handling the tough and sometimes unfair critiques on your company.
#72
08/31/2008 (8:09 am)
Say I payed the $500 for the 30% for a game.

Could I then "upgrade" to only paying 10% royalty by paying the difference of $1500ish?

Or say I wanted to then go to no royalties whatsoever, pay the difference of $4500?
#73
08/31/2008 (8:32 pm)
@Rybo

Read the updated price in the blog that Brett Seyler posted a few post above yours.
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