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Andrew Roberts
Okanagan College press release/edited
When Andrew Roberts started his online video game company last year, he couldn’t find anyone willing to invest money in his idea. But he did find enthusiatic gamers willing to invest their time.
That’s how he developed a unique business plan and a lucrative opportunity.
A graduate of the Okanagan College’s school of business, Roberts, 28, is the CEO and president of Cosmic Logic, an online video game production company.
“In 2006, the gaming industry really started to change,” said Roberts. “I saw a huge opportunity for individuals to create their own video games and distribute them online without a publisher. I just kept waiting for someone else to jump on the idea. By early 2008, no one had made a move so I decided to pick up my own idea and run with it and it has been a great ride from there.”
Roberts approached investors for help with start-up capital but was met with less than enthusiastic responses. So rather than acquire start-up capital, Roberts recruited employees who were willing to work for free.
“I have had no problem finding people who want to get involved with the company because people of my generation want to work toward something they believe in,” said Roberts. “It’s a win-win situation. I cover the cost of the initial software (about $150) and they get to use their skills and creativity to create a video game, which is a dream for a lot of kids.
“They are also really motivated to create a great product because if it sells well, they stand to do well financially. If it flops, they can still use that experience on their resume and as a starting point for future success.”
Cosmic Logic works on a deferred payment structure that divides game revenue equally between the artist, programmer and the company, each earning 33 per cent. That’s after Microsoft gets its share.
Changes to the online gaming industry have resulted in a huge opening for what Roberts calls basement developers. There is no longer a need for publishers in the gaming industry. Cosmic Logic will sell its games online through Microsoft’s global online platform at a cost ranging from $2 to $10. All users will need is an Xbox 360 system.
“Each week Microsoft announces its new games through a press release so marketing costs for the games are zero,” explained Roberts. “Most real gamers visit gaming blogs to find out what is new and hot and you can imagine that when a game catches on, it doesn’t take long for the downloads to take off.”
According to Roberts, even the worst-selling online games are downloaded between 5,000 and10,000 times. Every time one of Cosmic Logic’s games is downloaded, Microsoft will earn 30 per cent. Cosmic Logic will divide the remaining 70 per cent three ways.
Cosmic Logic’s first products will be on the market within the next month and Roberts plans on releasing nearly half a dozen games by the end of the year. The games are a visual throwback to the ’80s, with a retro-style two-dimensional look that uses hand-drawn fluid animation.
Roberts and his team believe strongly in the product and see its simplified structure as a welcome change to an industry that has become overly sophisticated with garish simulations that cost far too much for the average user.
“We are also finding that people love the look and feel of the old Nintendo games and they might want to sit down and just play a fun game for 10 minutes, and not invest hours. That is really the kind of game we are creating and at a cost that is very affordable to the user.”
Roberts quit his full-time job a year ago to devote all of his time to Cosmic Logic’s startup.
“I’m so busy but it doesn’t feel like work,” said Roberts. “I’m using all of my business education and experience working with aspects of finance, human resources, and management. I would almost pay money to do what I am doing now because it is so rewarding.”
And he’s not the only one. His staff, now 21 people, is growing exponentially and he gets queries from young artists, designers and programmers on a continual basis who just want to get involved.
“We have people working from their homes all over town and even as far away as Nevada and Toronto,” said Roberts. “They are all looking for the same thing I am – a way to put their talents and energy toward something they believe in.”
