Last time I promised to talk about business… Oh joy! 
One of the unfortunate side-effects of running your own little game development team is that you have to pay everyone. Not that that in-and-of itself is a big deal, but there is a lot of paperwork and procedure that goes along with it.
In our case, we have a bit more of a headache because we’re using “government funding”.
What Funding?
The fund in question is called MIDMF… the “Manitoba Interactive Digital Media Fund”. It has three sections: prototyping, development and marketing. We’ve been in the prototype stage.
Read On!
How Does it Work?
It’s a “matching funds” program – that means that the government matches what your company invests in the game. So if you’re planning on investing $10k in a prototype, the government would give you $10k.
What Does it Take to Apply?
Quite a large pile of paper work… our final application ended up being about 70 pages.
How do you Pay it Back?
You only have to pay it back if the game you’re working on gets released. If the game is released and makes money, you pay back the amount (say $10k) over a period of time via a percentage cut, to be negotiated between you and the government.
What are the Qualifications?
Half or more of your “key” staff must be residents of Manitoba.
What are the Limits?
I believe the limit for the government’s portion was $20k for prototyping, $50k for development. (not sure about “marketing”)
That’s not a TON of Money in Game Development Terms…?
The old overall budget figure I’ve heard for an XBLA game was about $250k, a far cry from MIDMF’s ~$75k. However, for smaller, indie teams, the government’s matching funds proved to be quite helpful.
Sounds Pretty Decent! Where Do I Sign Up?
Unfortunately you can’t, because it has been canceled.
Aww…
Yeah, it kinda sucks. Manitoba still has a tax credit. (I’ve heard there are some potential issues with it, but I don’t know the details)
It felt like our province was a little bit ahead of some of the others with MIDMF, now it feels like we’re taking a huge step backwards.
But: we have a lot of good people working to improve the industry here, so I’m hoping that in the future we’ll see the creation of a new fund that goes even further in supporting the local game development scene.
That’s all the business I’ve got for you today. Thinking of dollar signs and numbers makes my brain hurt.
Na wrote a Comment on April 20, 2010 at 2:07 am
That sounds great! I wish I had that sort of program for my own art work (not game design, but still…) in my town. It would mean less time trying to raise cash whilst developing my products.
Rostiger wrote a Comment on April 20, 2010 at 3:24 am
Nice coverage, Alec!
But what happens if things don’t work out and you don’t release for whatever reason? I can’t imagine they’ll just give you the money for nothing? Is that just one of the risks you have to take or is there some sort of Plan B?
Loken wrote a Comment on April 20, 2010 at 10:19 am
Too bad it was canceled.
I’ve tried looking for similar programs here in Minnesota. Not a lot of incentive to write video games here.
Chrissy wrote a Comment on April 20, 2010 at 4:40 pm
@2: If the game went unreleased, we would not have to pay back the money we got for prototyping. At all. It’s essentially a risk-free loan with no interest fees. The Provincial Government used to be cool like that :\
Hiro wrote a Comment on April 21, 2010 at 4:34 am
Huh. Sucks it got cancelled.. Does that mean that you wont get it, or did you get in before it closed so they still have to pay you?
FellaDudeMan wrote a Comment on April 21, 2010 at 2:16 pm
I think I said “Aww” right on cue with the text. AWWWWW!!!!!
You know, I sometimes try to imagine what this world would be like if we didn’t always have to worry about money, but eventually I’m reminded that here on Earth, it’s just a necessary evil. Even bartering can’t really cover the complexity of our lives anymore.
Despite how morbid that all seems, it’s at least comforting when dealing with the guilt you sometimes get when you demand payment for something you enjoy doing. Since items of entertainment have value, that value should be worth something. That worth goes towards the well being of the creators, and in turn, the perpetuity of good entertainment.
That’s why people shouldn’t get mad about paying a fair price for an indie game!
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