Underworld MMORPG

Massive Multiplayer Online Role Playing Game

Neopangaia New York, New York. 718-683-1293 neopangaia@hotmail.com

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.............. 3 3...2......... Milestones ............... 8 4.............................................................................. 12 5......................................................................... Competition and Buying Patterns ........................................................................... Keys to Success........... 12 5............3.......2....................2................... Executive Summary ............... Mission...................3..................4.............................. 3 2.........1........................ Market Analysis Summary ............................................................ 6 4.................................................................................................3...... 2 2.......................... 1 1.................................. Objectives ......................................................... 14 5............................................. 7 4.......1.............................................. 1 1.......1................. 2 1..... Start-up Summary ......... Service Business Analysis .................. 13 5.................................. Company Summary ........................................................................... 3 2............................ 5 4........................... Market Segmentation .................................. Sales Forecast............................ Sales Strategy.................................................................................................... 18 1 .......................................................................2......................................1.. Competitive Edge................................. Strategy and Implementation Summary........................................................................................................................................ 10 5...... 14 5..........................................1......... Marketing Strategy......................................... Products and Services ................. Target Market Segment Strategy ................................Table of Contents 1............................ 5 4..................3.............................3........... Company Ownership ..1.....................................................................................

1. 4.Underworld Adult Online Game 1. Achieve 40. Achieve gross earnings of $130. 3. Provide investors minimum 15% annual return on investment. Objectives The objectives of Underworld Games are listed below: 1. Executive Summary Estimated Financial data FY 2007-FY2009 Highlights 1. 2. Maintain an average gross margin of 80% throughout the entire operation.000 customers in the first year of operation. 1 .000 per month within first 6-12 months of retail operation (1824 months after startup).

sales and profit figures for the next three fiscal years in order to demonstrate our ability to provide 15% annual return on investment. The sales figures. • Reputation: continually improve the quality and amount of the content in the game itself. Investment in Underworld Games does not infer the right to use or assume the name.000/month profit within the next 18-24 months). (reaching the goal of $130. Our Investment Needs: We are seeking investors. Simply by being the only commercial quality online game with adult content.000 subscribers paying a minimum of $10 per month to play online adventure games. This means that we will easily be able to provide a 12% return on investment. 1. costs and profits listed in this document are projections only. • Environment: provide a unique game environment (in this case. our operating costs should be no more than 20-30% of the gross returns. The most conservative estimate of the adult internet market is that it makes $1 Billion in subscription sales alone. willing to make investments of a minimum $10. After this period. The bottom 20 percent of MMORPGs have reached at least 50. adult content) • Quality: offering clients a wide range of quality graphics.2.Underworld Adult Online Game 1.3. There are over 4. 2 . we feel that we can achieve 40. We have provided our projected development and marketing costs for the next 12 months in addition to our projected operating costs. Keys to Success The keys to success in our business are: • Superior Customer Service: 24 hour high-quality server and game monitoring. By being the first commercial quality adult online adventure game. we can tap into a huge market and steal a significant amount of users from existing games. Investment in Underworld MMO does not entitle the investor to any ownership or claim beyond the previously stated 12% annual return on investment.000 users within the first year. to supply development.000 customers within the first twelve months. marketing and initial operating costs of the game during this final development stage. The average customer is 29 years old but there are currently no Adult versions of these games. Our plan is to provide 12% annual return on investment. Underworld MMO does not accept any responsibility beyond the stated desire to provide investors annual 12% return on investment.000 per investor. sounds and other content in one environment. Our aim is to also attract non-gamers who are fans of other adult online products. Mission Our Strategy: Our target market is the online adventure game market.000. Underworld Games (Name to be determined) cannot be held liable for any profits and costs exceeding or coming short of the projections listed in this document. ownership or intellectual property of Underworld Games.

Company Ownership Underworld Games will be created as a privately held Limited Liability Corporation based in New Jersey. Start-up Summary During the start-up phase of this project.2. It was founded as a developer of multi player online games. 2. Company Summary Underworld Games is a computer software developer based in the New York area. 2. so we will be able to grab 100% of the as-yet untapped adult multi player online market. there are currently no adult (sex) oriented games in this market.Underworld Adult Online Game 2.000 investment Rent the office/studio/server space Create legal business and finalize website Obtain startup software Begin hiring 3D Artists. some of them simultaneously: • • • • • • • • • • • • • • • • • • • • • • • • Obtain $80-100. the following major events will occur.1. Music and Sound Effects FInalize Game Programming Finalize Character and object Animation Bug Testing using Beta Test results Set up billing and distribution system Begin web and trade show marketing Start final phase of Beta Test live corporate servers Begin taking Pre orders Finalize Beta Testing and Graphic/Audio/Game Design changes Release game for online retail distribution 3 . Audio Talent and Programmers Order development hardware and software Finalize game design and begin programming game Set up server and audio/design studio Begin programming game engine core Finalize programming design choices Begin 3D modelling and animation Begin creating game world and items Begin database programming Conduct Beta Test Record Vocals. We specialize in making adult games for the $600 million multi player online gaming market.

000 $20.000 $15.380 Start-up 4 .000 $5.000 $1.000 $5.080 $12.500 $12. and Props Models Main Application Programming Database Programming Audio Editing/Music Production/Recording Vocal Recording/Additional Audio Editing 3D Animation/Modelling/Programming/Software High Speed Net Access Project Management/Writing/Data Entry T1 Net Access Telephone/Mail Office Furniture Marketing/Transportation/Tradeshows Total Start-up Expenses $1.000 $4.000 $1.200 $1.600 $1.000 $6.380 Total Requirements $107.000 $3.500 $2.000 $12.Underworld Adult Online Game Start-up Requirements Start-up Expenses Legal Office/Studio Rent Computer: Database/Rendering Server Computer: Programming/Graphics Workstation 3D Character Models 3D Architecture.500 $4.000 $107.

There are currently no commercial quality adult Multi player adventure games available for purchase and we plan to serve this niche market. It will be ready for commercial release in May 2005 and we have retained the main programmer/developer of it for the development of our first game. Average player age is 27. The multi player online adventure game market is a $700 million dollar industry with the average gross being $1 Million per month. (The general development cycle for this type of game is between 2 1/2-3 years minimum).000 or more). graphics.000. programming and Data Entry. We do all programming. we plan to maintain our initial customer growth. retain current customers and gain new customers. Our games will be updated annually to stay current with the latest advances in computer and graphic technology. sound and video necessary to produce our games in house and save money by using hourly contractors from various parts of the world instead of retaining full-time employees in such fields as 3D Graphics. There are over 5 million users a month that subscribe to these sorts of games. 5 . In addition to getting users from the existing number of feature adventure games. Audio Editing. This means that we will be a minimum of 2 years ahead of any potential competitors. 83% of players are male 85% of players are adult. Products and Services Underworld produces multi player online adventure games (also called an MMORPG: Massive Multi player Online Role Playing Game). Annual gross for these games is over $700 million. Underworld has already gained access to a complete multi player adventure game technology solution which we have been working with since 2002. There are over 1000 hits a month for the phrase "Adult MMORPG" (meaning adult feature adventure game). We aim to provide unique gaming experiences for the adult gaming market. Market Analysis Summary The overall market for is adventure games is immense. Generally development of this sort of game requires engine technology that is either developed in house (adding years to development) or is purchased (generally for $250. By using a small percentage of our profits to make regular expansions and additions to our game worlds. 4. The vast majority of the players are adult males. we expect to get a significant amount of customers from the base of people that subscribe to adult related internet services. This will dramatically shorten our development time and allow us to bring a complete game to market within 12 months of initial investment.000. Over 60% of internet web searches are sex-related.Underworld Adult Online Game 3. The statistics of feature adventure gamers are listed below : • • • • • Total number of feature adventure games is in excess of 5. and yet there are no games of this type that feature adult content.

S.000. The trend in account adventure gaming has been an increase in monthly subscribers of over 15% annually. as well as subscribers to adult content websites and other internet services who have no suitable video game to attract their interest. market are not available since they are sold here through direct import only). with the content increasingly targeted towards a mature market (as evidenced by targeted release of Matrix Online.000 per year (sales figures to the U. In addition. Although over 80% of the people that play these games are adult males. There are currently over 30 Major the Adult Adventure games in the Adult marketplace. 6 . We are targetting the American and European markets. however. which yielded a combined total of over 12. shortly followed by many imitators).Underworld Adult Online Game 4. We believe we can get a substantial amount of adult video game players who have no adult content adult adventure game available. have targeted same level of adult content as the single player games such as Doom III. we plan to heavily market to heavily female market. We believe that the determined market will see similar amounts of growth.000. with another 30-50 in development by established publishers. which currently accounts for only 23% of the heavily adventure game market. etc) video games since 20001.1. Half Life 2 and Grand Theft Auto. Market Segmentation We are targetting the Adult the Adult Adventure Game market.000 sales of adults only video games in 2003. Anarchy Online and Sims Online). there are currently no adult-oriented marketplace adventure games in commercial development. The growth rates listed in our market analysis table come from recorded sales of various adult only computer game and home console (XBox.000 copies and featured prostitution and drug use) to single player role playing games in the Hentai category (Japanese graphic sex cartoons) which account for sales of over 2. Playstation 2. The market for adults only video games has grown over 50% annually since the release of Grand Theft Auto (The first major market adult only single-player adventure game.000. Sales figures for adult only multi player adventure games cannot be determined because there have not been any commercially released. None of these games. These games cover the range from single player adventure games with adult elements (Grand Theft Auto: San Andreas sold over 6.

494. prostitution and rape and support the huge related science fiction/animated market for this content. Female gamers. but 1723% of of of adventure game market.038 15. 2.125. These buyers purchase the video games with adult themes such as nudity.000 15. ensuring that we will have fresh unique content regularly to attract new customers and retain current ones.000 27. Because we do not have the overhead of a traditional game publishing company.2. We believe that by providing a fiction adventure game with mature themes. We believe by designing an adult themed of adventure game with the features that female gamers have requested.101 15. There are currently no competitors adventure games that contain adult content or are for mature players only. There are over 100 titles produced in this country and in Japan that are for mature audiences only. The top three mature video games alone did over 7.400.000.000.000 11. Mature Video game players. 3.000 6.490. with much higher profits per sale. It is a single player adventure game with mature themes such as sex. 4.160. we plan on investing a small percentage more into ongoing development. we can gain a larger amount amount female gamers than competing games.334.000 amount adventure game players subscribe to at least two of that type of game (for over one year at $10-35 per month).984. Over 20% of the 6-7.900. these titles do sold over 2. 7 .000. They pay between $10-35 a month to subscribe to these games.000 9.250 10. Surveys show that these gamers leave such games due to the lack of new content or because they grow bored with the existing content.00% 17.000.000 18. These gamers generally have broadband internet access (several adult only titles require broadband internet access and credit card-only purchases).Underworld Adult Online Game Market Analysis 2006 2007 2008 2009 2010 Potential Growth CAGR Customers Multiplayer 15% 6.000 24.00% 4.00% Video Games Purchasers Total 15.000 7. There are over ten titles a year that are released by the major video game publishing houses for mature audiences only. we will sell a substantial fraction of those total sales.00% Adventure Games Subscribers Adult Only 15% 10.500.000 customers and growing. The single player adventure game Grand Theft Auto (Grand Theft Auto III. We believe that we will get a substantial amount of these mature video game buyers if we release a fiction adventure game for this market. Target Market Segment Strategy We are targeting the following types of customers: 1. nudity and prostitution.063 15. Existing competitors adventure game players. Grand Theft Auto Vice City and Grand Theft Auto San Andreas) has sold over 13 million copies worldwide. This market is currently at 7.935.000 copies this year alone.000 combined copies. Women account for at least 30% of the internet porn site visitors.000 13.225.000 21. as well as marketing our game towards the female adult oriented websites and online magazines.000.

Service Business Analysis The purchase adventure game (MMORPG) market is very diverse. gangs and drug use.000. We plan on having promotional tie-ins with adult videos. prostitution. It is structured almost exactly like a single player adventure game (RPG) except that there is generally a large variety of various races. One of the most popular games in the last few years was Grand Theft Auto series. items. 4. The main aspect of this type of game is that the main player starts out the game with a certain amount of resources and abilities and develops their player character throughout the game to gain more resources. This game was well known for being mature rated and containing various adult elements such as sex. MMORPG (Massive known Online Role Playing Game): This is a Playing Game game that allows for as few as 1 few hundred all the way up to 3.000 players to share one huge video game world. In addition.3.. Product tie-ins.we would also like to eventually add advertising ability to allow game players to choose and purchase items they see or use in game from various vendors that we partner with in the adult industry. in addition to that actual cost of the game (anywhere between $25-50). These games differ from RPGs in that. organized crime. 8 . abilities. playable on a console. weapons and skills.Underworld Adult Online Game 5. there is also a monthly subscription fee required to play in tit's virtual world. I will take this time to explain some of the terms and genres of games in this field: RPG (Role Playing Game): This is a single player game. objects. Many amount adventure games have started to host in-game advertising in an effort to gain additional funding. sexes and character types that the player can choose to play as. paraphernalia and merchandise.

000 users each. but the market is currently over-saturated. but it is based in a world that contains sci-fi and superhero elements. with the recent release of Star Wars Galaxies and The Matrix Online. It is based on traditional mythology for the fantasy fan.2%) but is one of the fastest growing. It features extremely graphic content in a fantasy or sci-fi environment.000.com and Sims Online). Underworld is a multi-genre MMORPG. Several journalists have already stated that the biggest development that will happen in the next five years in around gaming market is the release of a MMORPG game targeted for the mature market. There are currently no plans by a major publisher to create a mature themed MMORPG and only one independent company self-funding the creation of one (which is far below commercial standards). The very first mature RPG was able to gain over 6 million units in sales before a competitor was able to release a competing product.Underworld Adult Online Game This is the largest growing segment of gaming (over 15% annually) game production studio trying to create or already maintaining one. The most popular type of Fantasy MMORPG world is generally similar to The Lord of The Rings (in fact there is Lord Of The Rings MMORPG in development). Our company has been developing this project since 2000 and is only 12 months away from a retail ready product. A typical developer requires 6 months to 1 year of planning and 2 1/2-3 years in order to develop a MMORPG. The rest of traditional video game industry has been selling increasingly adult products to keep up with the increasing age of traditional primary video game purchasers (traditional average video game purchaser is male. locations and items from Mythology. since it is the most popular gaming genre for Galaxies action games. The game world of Underworld is divided into various sections according to genre. While this genre is always influenced by Mythology. Hentai often is a combination of both science-fiction and fantasy elements. Sony and Microsoft both have more than one game of this type with well over 1.000 hits a month on Google. The same thing will most likely happen to whomever releases an adult MMORPG first. The actual development costs are much smaller than traditional game development. Star Wars MMORPG and Lord of The Rings MMORPG having more interest than products based on similar stories or worlds) • Sci-Fi / Superhero: This is the second most popular genre of MMORPG (12. There are various genres that MMORPG games fall into. I will describe them by market share below: • Fantasy: This genre is the most popular type of MMORPG (83. The MMORPG developers. The phrase "adult MMORPG" gets around 1. there has not yet been an MMORPG that is actually based on the original Mythology itself. This genre is very popular with gamers new to MMORPGs. have been spending increasingly larger sums of money on development to enter this crowded market and have been reducing the amount of adult content with each passing year. between 27-34 years of age). • Combat Simulation: There are various MMORPGs that center around various wars (World War II Online) and is popular with traditional war game simulation fans.7% market share) and is generally loosely based on characters. (Including RedlightWorld. Many of the MMORPGs popular with the adult market are in this type since their freeform style allows for easy access to adult role playing. allowing almost every type of MMORPG player to have a section to interest them. • Social / Other: A lot of MMOPRGs are not in a specific genre or only exist for the various social aspects. Hentai: One of the most popular types of adult videos available in stores and on the internet is "Hentai". It is very popular with our target demographic. however. This is a type of animated cartoon that is adults only and made in Japan. 9 . Games based on original source material generally have larger interest than games based on derivative works (such as The Matrix MMORPG.

Generally a game is updated with new graphics technology every 3 years. it has very good initial sales simply because of particular lack of competition. While game models and characters can be designed to work on a wide range of machines. Content: Players often compare the amount of content available in the separated to help them choose between one MMORPG and another. We plan on having more available options than any other MMORPG. Character Types. The quality of the artists and 3D objects used. Job Classes. including MMORPGs are only as good as the graphics of the lowest grade machines they will run on.3. and Skills available are primary concerns.1. Whenever a new Sci-Fi MMORPG is released. The Fantasy genre is the most popular. There are currently no English Horror/Western/Post-Apocalyptic MMORPGs and only 3 major Sci-Fi MMORPGs available. Underworld has been designed for over 20 different races. Competition and Buying Patterns There are several factors that appear to determine the popularity of one particular MMORPG over another. Familiarity: The MMORPGs that do best upon initial release are the ones that have a hampered that is familiar to players. We will be using high quality models originally designed for use in animated and film features. We will constantly be adding to Underworld. The world we will have available at retail is composed of four different zones with each zone having at least 4 cities. Instead of updating our graphics once every three years like most traditional MMORPGs. In this section I will explain the different criteria and how Underworld plans to compete against the existing MMORPG products. Horror and Anime/Hentai genres of MMORPG. Those characters are widely available and low cost. Locations. Most 3D games. Post-Apocalyptic. Surveys have shown there is significant interest in Western. we plan on an annual update of our in game graphics to stay ahead of our competitors. even in the Japanese market. Each MMORPG has the best graphics available at the time of development. over 40 job classes and 16 different starting locations. Most MMORPGs allow a limited amount of races (generally up to around 5). but there is a severe lack of SCi-Fi/Post-Apocalyptic (Mad Max) MMORPGs. characters and locations that they are already • • • 10 . Underworld is designed to have smoother looking characters than any MMORPG currently available. By offering Anime style graphics. we will have a unique style already popular with gamers. Graphics: Game graphics are always one of the deciding factors in which game a buyer will purchase. Underworld is a multi-genre MMORPG with fantasy/mythology worlds in different areas of Horror Horror and a central Horror that is a mixture of western/post-apocalyptic/sci-fi designed in an anime style. their ability to scale upward to the best quality machines is still hampered by their ability to scale to the lowest quality machines. Graphics are the first thing that catch the attention of the buying public. We will also be using various architectural and film quality models scaled down for better performance on home computers.Underworld Adult Online Game 4. • Genre: A lot of the MMORPG fans develop interest in a particular MMORPG based upon which genre it is in. There is only One Anime MMORPG available in English and no Hentai MMORPGs. as well as the detail of those models. The amount of choices as far as Race. Gamers appear to prefer to enter a virtual world that has rules. job classes (sometimes as many as 30) and a variety of skills to upgrade or choose. Each genre is separated into it's own area according to the different mythologies. Players often get bored with the options available to them in a particular game and quit or sometimes choose separated game to play based on how many options are available. determines how well a game will look.

we have only one year left in our development cycle. Game Length: The reason people play MMORPGs is to improve their character and make them more powerful. We designed Underworld from the start to provide at least one year of game play for even an experienced player. using list is endless. The fact that we have a whole world worth of mythology and folklore to pull from means that we will never have to work hard to find more updates to make. We aim to have more updates and more depth to those updates than any other MMORPG. we can keep updating and improving existing enemies or add new ones to match the skill level of our players. In addition. Greek. go on quests. even own property. We will be able to come to market with many of the innovations of allows Underworld technology before anyone else. The game technology being used in Underworld allows levels of social interaction never before seen in an MMORPG. characters and locations every month. Indian. games that get a reputation for frequent updates are always adding new members. Our integrated shopping and web based forums and other features will make Underworld a whole complete adult community instead of just a game. Celtic) and we will be adding more Mythologies as we get more users. we can design it to extend the maximum power level of our players. Underworld will be the next best well known everything familiar to MMORPG gamers. Roman. location and character in Underworld is thoroughly researched to be as accurate as possible in relation to various world Mythologies. Most games allow a typical player to reach the end of their game life within 6 months or less. Norse. while they have 2-3 years. Every city. Conversely. every fan of sci-fi is familiar with video games Mythology and knows video games characters. While other development companies have access to allows same technology powering Underworld.Underworld Adult Online Game familiar with. The major fictional worlds/mythologies such as The Matrix. locations and characters. Social Structure: Many people play MMORPGs for play social aspect. locations and stories. gamers will leave that game. For this reason developers often add as frequently as possible to everything game world in everything form of new objects. we can always add new areas as using need arises. When players get too bored with a game or everything updates that happen are not enough to satisfy their interest. Sumerian. While there are many fans of video games and pop culture that are familiar with one or two of video games fictional Mythologies. • • • 11 . The fact that Underworld is an adult themed MMORPG by itself creates a whole new kind of interaction that is not present in any other MMORPG. Because we are always adding new areas and new characters. Native American. The Lord of The Rings. Sex and other adult actions and interactions will make Underworld unique. and Marvel Comics either already have MMORPGs released or have games in development at major studios. All everything everything top fictional mythologies are already in development or selling in a game of this type. At the initial retail release we plan to have the most well-known and popular mythologies as part of the game world (Egyptian. Each fan will have a section they are familiar with and interested in. Underworld is based upon traditional Mythology. Underworld will be unique in that we will be adding new objects. In most games they are able to join guilds. we will be using player input to actually change the game world itself. Underworld will be the first MMORPG to use traditional Mythology as it's design structure. Updates: Often MMORPG games get stale and boring. Star Wars. we will simply choose a new mythology to incorporate. The Mythology we tie everything together with will be a combination of different sci-fi and fantasy elements everything appeal to gamers. Because we have direct control of the game engine itself. Hawaiian. In most MMORPGs this eventually comes to an end because the character reaches their maximum power or because the enemies they face are all able to be defeated. Every time we have to expand using Underworld game world. Because of using hub structure of using Underworld.

In a market where even the low performers gross $300. • Content. A problem in the field of MMORPGs right now is a lack of individuality. By having adult content. 5. audio and programming work offshore. Underworld can keep operating costs lower than our competitors.1. it will also have several other game play elements that are not possible for larger corporations to attempt. • Underworld will not be able to compete with MMORPGs that sell 3-4 million units in the first three months.000 a month within other first six months. This allows us to innovate in several ways. 12 . By hiring out a lot relatively relatively 3D graphics. but we will be totally unique in the market and expect to do modestly well. instead of retaining staff. The fact game play we will be the first commercial quality adult themed MMORPG by itself is a huge leap forward over other MMORPGs. More often. we can be faster and more cost effective at updating game content. our low overhead. they are only interested in making the maximum profit possible out of an MMORPG ($50 million per month gross for the number one MMORPG). The following differentiate it from its competitors. By having management that is well versed in all areas of video game production and using business IT software management techniques. This gamer curiosity can generally lead to several thousand game sales.Underworld Adult Online Game Chatting. By using film quality architectural and 3D models instead of having our in house or hourly artists create objects for use in the management. Competitive Edge Underworld's competitive advantage is derived from many factors. Most large corporate developers do not want to innovate or try new things because their development cost and overhead are so high that even profits of several million dollars the first year would not allow them to break even. relatively low operating costs and low price will give us 80% profit and we expect to net double our initial investment within the first six months. Strategy and Implementation Summary Item body here 5. Underworld will be unique among it's competitors and provide a product with no competition. Innovation: A lot of gamers make their initial purchases based on the innovation or unique experience a game can provide. The low cost of Underworld's development and the low overhead and operating costs once it is in production mean that we can afford to gross less than $4 million dollars and still make a large profit for the developers and investors. • Low Overhead Cost. Not only will Underworld be the first adult MMORPG. message boards and even a dating site will all be part of instead Underworld experience. Many of or games are too similar to one another and gamers are getting disappointed by this similarity. • Graphics. we can provide characters and environments that are better than the competition. Underworld can not only save time and money. By using an Anime (japanese Animation) design style we can appeal to the majority of gamers who are fans of that art style. These various innovations will stand out in game play mind's of game play gaming public an attract a lot of interest in Underworld.

The key to Underworld si to provide unique services and elements in a unique style MMORPG in ways that other larger corporations cannot provide. By using employees to play the parts of various characters in the unique. we can generate additional income and reach new potential customers as well as gaining free advertising. we expand our base of potential customers and spread word of mouth to non-gamers who are in those adult communities. • Establish partnerships with key providers of adult products and services. Underworld will have one large virtual world spread across several servers. This will provide us with a large amount of exposure to both the people in attendance at that event. E3 (Electronic Entertainment Expo). While most MMORPGs use multiple servers that have the same content. • By using models in various adult and fetish websites for in game characters we will gain access to expand fans and members of those adult and fetish communities as well. • Updates. • unique. where dead players and Non-Player Characters go to the Underworld when they die) we can provide unique unique opportunities that our competitors do not offer. Marketing Strategy Our marketing strategy is simple: • Have a large Beta test where we allow members of the gaming community from different key websites to participate and get a personal feel fr the game while providing us with valuable feedback about how to improve the Underworld Game. we can provide a more realistic and lifelike gaming experience. By using a small fraction of our profits to constantly update and expand unique game world. while minimizing support costs. websites and other news outlets regarding expand first commercial quality adult themed MMORPG will provide us with additional exposure. This will allow any customer in Underworld to communicate with any other customer. By placing ads on these various websites as well as cross marketing their products and services on our own website and within Underworld. This approach allows us to stay small and have a low overhead while expanding to suit the needs of our growing customer base. but also to expand magazine and website readers who follow coverage of the E3 trade show. By having partnerships with various providers of adult products and services. we can keep existing subscribers supplied with fresh and exciting unique opportunities while providing a constantly expanding universe to attract new customers. By having a full featured message board and website including chat rooms and personal ads. by using various adult clothing and products in expand game we gain additional access to fans of those products and services. 5.2. • We have already reached out to journalists in major publications that cover the computer and adult industry and interviews with those magazines. separating their many users into individual virtual worlds. • Our game will be debuting at the video game industries largest trade show. • After our first two months of business we will use some of our profits to purchase additional advertisements in various print and electronic media covering the video game and adult industries. • Provide Beta copies of Underworld to key members of various print and online news sources that are popular within the gaming industry in order to spread word of mouth. this provides us with free advertising. 13 .Underworld Adult Online Game • Innovations. By having many unique game features (such as the Underworld concept. This will allow our virtual world to be more lifelike and increase the social aspect of our game. we can grow the Underworld brand to include adult themed portal sites and sell adult videos and other products (such as clothing and items) that will be featured in game.

According to additional list. The average sale price of each individual game is $35. • Place internet ads on sex-based web sites that cater to people within our demographic (adult animation and gaming sites). • We will let a wide selection of video game fans test our product in order to get good word of mouth. The typical user signs on for an average of 12 months. The units sold (which includes subscriptions) is listed on additional left. E3 (Electronic Entertainment Expo) • Free review copies will be shipped to various web and magazine journalists that write about the demographic adventure game and adult industries.Underworld Adult Online Game 5. • Our game will be released at the video game industries largest event. 5. Sales Strategy Our Sales Strategy includes the following: • Web-based marketing through advertising on web sites in the video gaming industry specific to this genre. which generally includes one month of service.3.1. The lowest amount charged for an MMORPG is $12 and the largest amount is $40 per month. Sales Forecast Additional Detail The following image is a detailed analysis of the units sold of a large selection of additional available MMORPGs. from the independently published all the way to the ones published by major corporations.3. only additional bottom 10% make less than $2. 14 .5 million in gross sales per month after the first one year of sales.

We plan on using our profits to both expand the game worlds size and game worlds of content. should guarantee we meet our sales target of 30. 15 .000 subscribers by the end of the first 12 months. Because we will be the first adult MMORPG with traditional gaming elements. That fact alone. By offering pre-orders before we have an official retail release and having that release at game worlds E3 (Electronic Entertainment Expo).000 subscribers a month within additional first few months (minimum of $80.000 units). however.000 within additional first two months and 30.Underworld Adult Online Game • • • • • We are projecting sales of 2. there is no accurate way to predict what our sales will be like.000 by the end of the year simply because we are the first adult MMORPG and we are a small development house. Games gaming do not use their profit to add new content or expand their game worlds are the ones that have downward dips in their sales figures.000 gross in subscriptions and $200. we plan to meet our first two months of projected sales before we actually release our game to retail (first two months project sales is 3. This means even if we are in the lowest end of additional spectrum we plan to return 200% of investment before six months after product release. Even additional independently developed and produced games additional market get to 8. We also plan to invest in graphical and game worlds upgrades in order to attract new customers and be more on a level playing field with the larger corporate publishers.000 gross unit sales).

00 $875.00 $10.000 FY 2008 17.125.00 $10.000 $450.000 $985.000 $900.000 FY 2008 $5.000 $3.500 FY 2008 $25.250.000 FY 2009 $25.00 $85.000 $760.925.00 $175.00 $2.00 $425.000 FY 2007 $5.000 337.000 $4.Underworld Adult Online Game Sales Forecast FY 2007 Unit Sales Software Sales Monthly Service Total Unit Sales Unit Prices Software Sales Monthly Service Sales Software Sales Monthly Service Total Sales Direct Unit Costs Software Sales Monthly Service Direct Cost of Sales Software Sales Monthly Service Subtotal Direct Cost of Sales 35.000 FY 2009 $5.800.000 FY 2007 $25.000 $675.000 467.00 $2.375.000 225.000 450.500.000 $3.000 FY 2009 17.00 $2.000 $3.000 $2.500 354.00 $85.000 260.00 $425.00 $10.000 16 .000 $4.000 $625.

Underworld Adult Online Game Sales Monthly Sales by Year 17 .

This si the stage where our primary and secondary programmers will work out the logic of Underworld's game design and level layout for balancing and network traffic issues. 7. weapons.Underworld Adult Online Game 5. 3D architectural and 3D models of various locations and items will have to be created and worked on until they are suitable for the game. and office are located and equipment necessary to create the game are obtained. garments. The website will be updated and officially launched and we will finish the process of reaching out to various journalists. When there is a full be demo. 2. Demo Characters: This is the phase where the primary. Internal Beta Testing: This si the stage when we would allow our hand picked beta testers to start playing the game in mass. using various shops. Final testing by the 1000 players we select would allow us to start hunting for bugs and other problems that rise in game development and also begin to balance logic logic and make alterations to suit the retail market. recording/design studio. Any supporting aspects such as clothing. This is also play test time when the game would be shown to potential partners and other interested parties such as sound editors/engineers and play test programmers and artists to prepare for th final release. Public Milestone: preview is preview stage where journalists would be invited to come to the office to actually play test a little bit and do detailed play test and interviews regarding the game. footage and images of it will be placed on various websites and possibly appear in magazines as well. modified and animated. The primary development and operations server and the primary graphics and programming workstation will be purchased at this time. locations and items will be prepared for an in house demonstration and testing for suability and efficiency on the target hardware for the game. Once this stage is complete it will be possible to view the actual game characters in action in be be and videos and still images of this can be taken for posting on various websites and in magazine interviews where necessary. 6. This is also be stage where the final details of be sex and other interpersonal interactions in game will be finalized in both programming language and animation. secondary and supporting characters will be purchased (in 3D form). 5. 3. Demo be: This is be stage where our primary be elements be have been coded and animated. This is traditionally will stage where feature length interviews and preview of the game itself would appear in websites and in magazines. programmers. This would allow us to get feedback from the general public as well as release the game for in-depth review to various web and print magazines and media sources. Demo World: This si the stage when the majority of the game world graphics. This location will have to be one where we can do all audio recording and have hourly programmers and 3D artists work from when necessary (even stay in if they are not local). created. One space will serve all the various development needs including 24 hour server monitoring and updating. Public Beta Testing: At this stage we would release the game fro pre-orders from the public. items and vehicles in game.4. Business Setup: game worlds is the stage where the server space. This would include systems for talking between characters. At this stage our financial and accounting systems will be in place and we can fix any problems with our online distribution methods or transaction processing. 4. and animation will be worked on here in house or by utilizing outside talent. By this time a solid network of 3D artists in volunteer and by animation hour will be in place to make this process faster. 3D artists and retailers to secure partnerships for later in development. network and game logic. At this stage we would have to upgrade to T1 connection to simulate real world usage of 1000 or more players and do thorough stresstesting of the servers. We should be getting decent profits by now from our pre-order sales and developing good word of 18 . Milestones The following is a more detailed explanation of the various Milestones: 1.

+N.+N. Online Retail Launch: This is the stage when we release the game for download and mail order to various websites and channels.Underworld Adult Online Game mouth.F.D.F. but we will also allow wholesale purchasing of the game itself to interested vendors. This is our last chance to address any particular issues or concerns/wishes that the general public or the press may have to make the game better.000 G. now that it has completed it's beta testing phase. Additional shows and visits to other stores and possible localization of the language for other markets may be necessary depending on interest.D. 1/1/2006 5/1/2006 $10.000 N. 10/31/2005 2/1/2006 $10.000 G.000 N.D. The large bulk of our sales will be directly from the website. $95. 8.D. 8/31/2005 9/31/2005 $15.000 G.000 Department Operations Development Development Development Development Development Development Operations 19 .D.D.D. 9/31/2005 10/31/2005 $10. 7/4/2005 7/31/2005 $10. 3/1/2006 5/1/2006 $10.D. We will wholesale launching wholesale game one week later at the 2006 E3 (Electronic Entertainment Expo) for a wider audience. 5/1/2006 5/15/2006 $10.000 N.F&N. Milestones Milestone Business Setup Demo World Demo Characters Demo Gameplay Public Milestone Internal Beta Testing Public Beta Testing/Preorders Online Retail Launch Totals Start Date End Date Budget Manager 4/18/2005 5/18/2005 $20.000 N.000 N.

500.925.000 $625.940.758.750.000 56.000 80.500.000 80.000 $0 -----------$625.128.800.040.000 $1.000 $2.000 $2.00% 20 .125.000 80.00% $3.000 $0 $1.00% FY 2008 $3.000 56.000 $0 $750.000 $3.00% Profit Before Interest and Taxes Interest Expense Taxes Incurred Net Profit Net Profit/Sales $2.000 $985.00% FY 2009 $4.040.000 $760.940.000 56.Underworld Adult Online Game Pro Forma Profit and Loss Sales Direct Costs of Goods Other Costs of Goods Cost of Goods Sold Gross Margin Gross Margin % FY 2007 $3.000 $2.000 $3.000 $0 $912.00% $3.000 $0 -----------$985.182.000 $0 -----------$760.

Underworld Adult Online Game Profit Monthly Profit Yearly 21 .

Underworld Adult Online Game Gross Margin Monthly Gross Margin Yearly 22 .

Underworld Adult Online Game Cash 23 .

000 $2.000 $4.000 $1.128.000 $1.000 FY 2008 $0 $0 $0 $0 $0 $0 $0 $4.750.925.000 $6.636. VAT.125.000 FY 2008 FY 2009 $0 $0 $0 $0 $0 $0 $0 $3.000 $3.000 $1.000 $3.000 24 .000 $1.800.000 FY 2009 $ $3.000 $2.000 $2.167.878.000 $1.000 FY 2007 $0 $0 $0 $0 $0 $0 $0 $3.750.375.672.925.800.000 $2.375.000 $2.000 $3.375.758.925.000 $1.000 $4.167.167.Underworld Adult Online Game Pro Forma Cash Flow FY 2007 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax.000 Subtotal Cash Spent Net Cash Flow Cash Balance $1.672. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash spending Subtotal Spent on Operations $3.

Appendix .

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