from Information to Business Canada Business - Nova Scotia’s monthly business information bulletin June 2011

Business Article Playing with the Big Boys It’s game on for digital business by Kayla MacDonald and Cindy Allen f you’ve watched YouTube, played Ia game on your Nintendo DS, or downloaded the latest app for your handheld device lately, then you know how pervasive digital media has become in our entertainment and information worlds.

With parts of Canada dubbed the “Silicon Valley of the North”, the country has become a hotbed of tech- Photo: John Sherlock nology innovation involving some Matthew and Jason Doucette of Xona Games in Yarmouth, Nova Scotia: 14,000 skilled digital media workers, Quality products trump business location in the gaming world. and 260+ digital media companies.

Within the sector, the multibillion- leaders across the entire gaming value turnaround and a good quality of life dollar is expe- chain – from tools development to are all cited as draws to the province. riencing tremendous growth, with casual games and serious games, to Canadian companies poised as global mobile game and gameware develop- Twin brothers Matthew and Jason ment. Doucette well know the benefits of doing business here and have happily In this issue: It’s an industry on the move. Literally. never had to leave home to reach their Digital Media level of business success. More and more companies are choos- Business Article ... p.1 ing to set up shop outside of the “Video game development is part of Playing with the Big Boys: It’s game on for digital business traditional hubs of gaming creativity a highly competitive global market,” - Toronto, Vancouver and Montreal. the Xona Games creators explain, but Ask the Staff ... p. 2 Nova Scotia, for example, is home the physical location of a digital busi- How can I get a publishing deal for my to internationally-recognized studios ness barely matters in a wired world. video game? such as HB Studios, Longtail Studios, Canada Business Blog ... p. 3 the Red Space, Twisted Oak and Xona The world’s top publishers such Mobile websites – do you need one? Games, with more expected to arrive. as Nintendo, , and Activision, have their pick of games Industry Profile ... p.4 Attractive tax incentives, a highly- developed around the globe, yet Xona Digital Media skilled workforce, low employee Games, located in small-town Nova

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Nova Scotia Business Information for Entrepreneurs “If you don’t enjoy the process and usual” at a trade show like this. “It boils down can’t challenge yourself, then maybe the industry isn’t right for you.” The brothers laugh as they highlight to the the unique cultural differences these Both Acadia University graduates events tend to reveal about the digital fundamental realize that a university education business world, where media and can only get you so far. “Like most video game developers are beyond the principle that things, it boils down to the funda- formality of wearing a suit and tie: mental principle that practice makes practice makes perfect,” reinforces Jason. “Some of the biggest industry leaders walk around wearing ripped jeans and perfect” Practice, plus the evolution of new an old t-shirt.” In the gaming industry, concepts and credos. The brothers appearances are irrelevant: A devel- compiled their own philosophies into oper’s work speaks for itself, say Scotia is firmly on the global radar something they call “Game Code” – a the brothers, and is an art form that with its award-winning games, and list of do’s and don’ts collected from entails creative and quality work. enjoying recognition in notable gam- video games they played in their ing publications. youth. Jason adds that while the Game As digital media evolves and new Code doesn’t necessarily guarantee forms emerge, so do opportunities for How? The Doucettes started their in- success, it does guarantee high quality: developers. Mobile gaming systems dependent business young, and with an element publishers want. and family-friendly video games are a unique recipe for success. just a few niches now spurring indus- It’s also important to get out there and try growth. The Doucette brothers “Many people think that my brother attend events like the annual Game plan on taking full advantage of the and I are gifted or that our expertise Developers Conference, the world’s expanding industry. is a product of the classroom, but it is largest professionals-only game our continuous crafting of new games industry event, held in San Francisco, “Games for social media platforms and dedication that has taught us California. This year, Matthew and such as Farm Ville on Facebook, and everything we know.” Jason’s small business display was set games geared towards women are a up near industry giants like Nintendo few changes that have already taken Matthew also advocates that if you’re and Google. storm,” says Doucette. “The industry interested in the development busi- is here to stay and can only be expect- ness, first jump in and give it a try. But don’t expect “business quite as ed to continue to grow.”

Profile of an entrepreneur

Who: Jason and Matthew Doucette Company: Xona Studios, video game design

Location: Yarmouth, Nova Scotia Established: 2008

Current Game Platforms: LIVE Indie Games and Windows Phone 7 Future Goals: , PlayStation Network, Windows PC, Nintendo and iPhone

Watch: Matthew’s Are you smarter than a CEO? Interview: http://www.youtube.com/watch?v=ChF8o28_c1o Above: A Xona Games display looks completely at home just steps from that of global giant, Nintendo.

from Information to Business 2 Ask the Staff publishers keep to one platform, Secrets of the Game Business, Second genre or budget size, while others Edition

tend to dabble more in the unfamiliar. Francois Dominic Laramee How can I get a publishing deal for my video game? The publisher is not your enemy – Need a book that unveils the inner You might find yourself thinking that workings of the flashy but serious By Molly Fall a publisher is a difficult entity that you game development and publishing must deal with in order to accomplish industry? If you are thinking about here are no hard and fast rules to something. But, don’t forget that a creating a game development com- Tsuccess in pitching your game and developer/publisher relationship is a pany, want your existing company to negotiating a deal with a publisher, win/win situation and the end result prosper for a long time, or just want to but there are a few things you should benefits both. Approach publishers in understand how and why the business be aware of that can help you increase the spirit of cooperation and respect, evolved to its current dynamics, then your chances.. and if everything works, you’ll end up this is right book for you. This book with a game on the shelves. provides an insightful look into the The chances of getting a publishing current state of the industry and future deal on a design document alone challenges facing developers. are slim to none – In addition to a good design you’ll need a playable Feature Blogs Get rich with apps! Your Guide to demo, a good team with a proven track Mobile websites — do you Reaching More Customers and Mak- record, and a clear written plan for need one? ing Money Now items such as budgeting, marketing, Jesse Feiler treatment, and scheduling. As internet access shifts from the desktop to the handset, a mobile It is safe to say that you will probably Publishers are not gamers – The website can be an effective way to use iPhone apps either as a developer, demo you send should have walk- share information and engage your a marketer, a business owner, or an end through instructions and a way customers. user. The cost of this software devel- to jump from one part to the next opment has changed the way forward- without having to beat each level. To learn more about promoting your thinking people approach the idea of A guided tour or anything else that business online, visit our section on software development. With such low doesn’t require having to play the Online Marketing. You may also be costs, it is possible to develop an app game can make it easier for the interested in our Pros and Cons of So- or have them developed for even the publisher to decide why it should be cial Media page, which offers infor- smallest business. Get Rich with Apps published. mation on incorporating social media will show you how to look at apps in into your marketing strategy. a new way and learn what works, and To most people a “camper” is what does not. something to take a trip in – Don’t http://www.canadabusiness.ca/eng/ assume that publishers are familiar blog/entry/6379/ YouTube: Online Video Marketing with gaming jargon or lingo. It is best for any business for Business to avoid any form of slang, even if you Michael Miller are sure they will understand, because this will keep your submission profes- Hot Picks YouTube is a fun and popular site, sional and credible. constantly ranking in the top five The following publications are avail- of all sites on the Web with more All publishers are not the same – able through the Canada Business than 130 million visitors per month. Pitching to as many publishers as pos- - Nova Scotia resource library. Some YouTube for Business is part market- sible will increase the chances of your may also be available from our net- ing text, part computer book; that is game being picked up. To save time, do work of resource centres, located because you need both marketing and a little research in what games they have throughout the province. Please contact technical skill to take best advantage already published and what their future us to find the copy nearest you. publishing interests include. Some continued on page 5 .....

from Information to Business 3 Sector Profile – Digital Media

Associations and Organizations Nova Scotia: Digital Snapshot Canada’s Advanced Research and In- by Ashley Cameron novation Network (CANARIE) http://www.canarie.ca/ Did you know that Canada is ranked the third top country in the world for video game development and is home to some of the best known brands Innovacorp in the video game industry? Nova Scotia alone houses a number of lead- http://innovacorp.ca/about-us ing companies such as HB Studios, Huminah Huminah Interactive, Longtail Studios, Silverback Productions, The Red Space and of course Xona Games, Digital Nova Scotia many of which are featured in Develop Magazine’s November 2010 Issue. http://digitalnovascotia.com/ HB Studios, located in Lunenburg with a second space in Halifax, is the larg- Nova Scotia Business Inc est gaming corporation in the province with over 130 employees. It is known http://www.novascotiabusiness.com/ internationally for producing popular EA Sports games such as the FIFA en/home/default.aspx World Cup series and Tiger Woods PGA Tour 10. Canada Youth Business Foundation According to Digital Nova Scotia, Nova Scotia’s digital industries alliance, http://www.cybf.ca/ Nova Scotia’s thriving technology industry even has the potential to boost the provincial economy in the same way oil and gas did for Alberta. National Research Council Canada http://www.nrc-cnrc.gc.ca/eng/busi- As Jason Powell, President and Chairman of the alliance states in an interview ness/index.html with Nova Scotia Life: “Digital economy encapsulates more than IT. It encom- passes the emerging $3.5 trillion annual piece of the economy that includes

new media and video games. As a province, we participate in a bit over $1 billion of this enormous part of the economy, so there’s room to grow.” Government Programs and Resources With its attractive and competitive digital media tax credit, low employee turnover rates and industry support, Nova Scotia is poised to advance to a This list is just a sampling of the whole new level of digital media business growth. many programs and resources avail- able to businesses in the sector. Con- 47% of Canadian households have at least one video game console such as an sult our website or knowledgeable , Wii or PlayStation staff for more information. Acadia University in Wolfville, Nova Scotia, offers a four-year Bachelor of Computer Canada Media Fund Science Specialization in Game Development. Programs and courses are also avail- If you are a Canadian television or able through the Nova Scotia Community College and Dalhousie University digital media producer, you could get financial assistance to produce Some 20 percent of the top-selling games in North America are developed in television shows and interactive Canadian studios digital media, like digital games.

Canadian digital media companies are setting new standards in courseware design, Equity Investment - New Media entertainment, consulting and flight simulation You could receive funding to produce and launch your interactive new media For years, almost every film nominated for an Academy Award in special effects was product. produced with Canadian-developed technology

InNOVAcorp High Performance Sources: Invest in Canada Bureau, Nova Scotia Business Inc., Nova Scotia Life, Entertain- Incubation ment Software Association of Canada, Gaming Business Review, Develop Magazine and Digital Nova Scotia. continued on page 5....

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Editor-in-Chief Left: Gameplay Cindy Allen shot from Score Editor Rush (scorerush. Ashley Cameron com) - a 4-player Contributors shoot ‘em up game from Xona Molly Fall Kayla MacDonald Business Centre Manager John Kavanagh

Subscribe: .... continued from page 4 .... continued from page 3 http://www.canadabusiness.ca/eng/ Develop your innovative idea and grow of YouTube. The book is organized page/contact/ your emerging technology business into four parts: Marketing Your Busi- with incubation and mentoring. ness Online with YouTube, Produc- Read previous editions: ing Your YouTube Videos, Managing http://198.165.22.233/ns-ec/cb-ns/ Capital Investment Incentive Your YouTube Videos, Promotion and newsletter.php Receive funding to help offset the cost Monetization. of buying technologically-advanced From Information to Business machinery, clean technology, equip- Basic Marketing 02: Online Marketing ISSN 1718-7494 ment, software and hardware. Brian Sheehan © 2011 Canada Business - Nova Scotia

Export Prospector Program In keeping with advances in technol- Benefit from the core advantages of ogy, and rapid consumer adoption of a trade mission designed specifically new media, the possibilities for digital for your business. marketing are changing rapidly. Online marketing is unquestionably the most Follow us on Facebook! Business Development Program dynamic and fast-moving field in mar- Access funds to start, expand or keting today. This book highlights big improve your business in Atlantic marketing ideas and case studies that Canada. exemplify forward thinking. Upcoming Events Digital Media Tax Credit Cyber Law Canada: Your digital media business may be The computer user’s legal guide Canada Small Business eligible for a refundable tax credit of Jeremy Schelling Financing Program webinar up to 50% on the cost of developing June 16 at 2 pm interactive products. The Internet is more than just a pass- ing phenomenon, and laws regulating http://www.ic.gc.ca/webinars it and other on-line communications will have a significant impact on our Japan Engagement Seminar daily lives and businesses. As an Halifax, June 17 internet user, you need to have an http://www.international.gc.ca/canadexport/ understanding of the basic principles articles/110527b2.aspx of cyber law: not only how to legally use the Internet but also how to protect Please see our online calendar, yourself from unlawful users. or visit us on facebook for more business events

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