For Subscribers

Get in the Game In the $18 billion video game industry, independent developers are teaming up with the big boys.

By Nichole L. Torres

Opinions expressed by Entrepreneur contributors are their own.

Whether it's deftly targeting an opponent in combat or solving a difficult puzzle, video gamers are always looking to overcome the next challenge. In fact, total video game industry sales hit almost $18 billion in 2007, up from $12.5 billion in 2006. And software sales alone grew by 18 percent, according to the NPD Group.

To meet the explosive demand, game console manufacturers like Microsoft are contracting with independent game developers to create brilliant games. "More than 25 independent studios are the creative fuel behind the original games that represent more than a quarter of our Xbox 360 Live Arcade library today," says Jeremy Wacksman, global marketing manager of Xbox Live.

Game industry veteran Steve Taylor, 38, started Wahoo Studios Inc. in 2001, developing games under the NinjaBee brand. He eventually hooked up with Xbox Live through a combination of luck and persistence. "It's about talking to the right people," says Taylor, who co-owns the Orem, Utah-based company with Brent Fox, 37, and Lane Kiriyama, 52. "We keep trying and trying. After about 15 conversations, something works out." NinjaBee projects sales of nearly $3 million this year, due in part to popular games like Cloning Clyde.

The founders of The Behemoth in San Diego also found success working with XBLA, selling games like Alien Hominid. When they started their company in 2003, John Baez, 43, Tom Fulp, 30, and Dan Paladin, 28, would cold-call companies to try to get their games published. They showed off their games at the 2005 Independent Game Festival and won three major awards, which got their games noticed by the industry at large. Baez advises getting "as much experience as you can in the industry before starting your company." And Paladin stresses taking risks. Following their instincts has helped push company sales into the six figures.

Creativity is needed, and the market is ripe for small independent companies. "Massive consolidation within the mainstream game industry has ratcheted up the barrier to entry, yet small, nimble companies are doing better every day by exploring new audiences and channels of distribution," says Jason Della Rocca, executive director of the International Game Developers Association.

Got a great game idea for Xbox Live Arcade? Independents can work with a game publisher who will connect with XBLA decision-makers. Developers interested in creating a game for Xbox Live Arcade can send background information about their company or experience to arcade@microsoft.com. E-mails should include a detailed description of the game, screen mock-ups and preferably a gameplay video or playable prototype.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

This 29-Year-Old's Side Hustle Brought People 'to the Dark Green Side.' It Made $10,000 Within 2 Days and Sees 6 Figures a Month.

Nikki Seaman began work on her business when the pandemic led to grocery store shutdowns.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

Perplexity CEO Says AI Coding Tools Cut Work Time From 'Four Days to Literally One Hour'

Perplexity CEO Aravind Srinivas said that the startup's engineers are using AI coding tools.

Business News

Here's How Much a Typical Microsoft Employee Makes in a Year

Data from thousands of new federal filings shows how much Microsoft is paying its employees, from software engineers to product designers.

Growing a Business

She Went From Teacher to Owning a Business in an Unexpected Industry – And Wants Others to Do the Same: 'There Is So Much Opportunity'

Angie Snow went from teacher and stay-at-home mom to co-owner of a thriving business by embracing leadership, championing women in trades and rethinking what it means to support both employees and customers.

Marketing

Why Skipping This One PR Move Could Stall Your Startup's Growth Before It Even Begins

Doing PR is critical for startups, yet many entrepreneurs are so busy developing their product that they forget to make a media plan.