Game development is the software development process by which a video game is produced. Games are developed as a creative outlet and to generate profit. Development is normally funded by a publisher. Well-made games bring profit more readily. However, it is important to estimate a game’s financial requirements, such as development costs of individual features. Failing to provide clear implications of game’s expectations may result in exceeding allocated budget. In fact, the majority of commercial games do not produce profit. Most developers cannot afford changing development schedule and require estimating their capabilities with available resources before production.
The game industry requires innovations, as publishers cannot profit from constant release of repetitive sequels and imitations. Every year new independent development companies open and some manage to develop hit titles. Similarly, many developers close down because they cannot find a publishing contract or their production is not profitable. It is difficult to start a new company due to high initial investment required. Nevertheless, growth of casual and mobile game market has allowed developers with smaller teams to enter the market. Once the companies become financially stable, they may expand to develop larger games.Most developers start small and gradually expand their business. A developer receiving profit from a successful title may store up a capital to expand and re-factor their company, as well as tolerate more failed deadlines.