HA3 Task 3 Current Financial Issues

Task 3

Current Financial Issues

Financial planning is important in the games industry as if you do not plan, there is a big chance you will go over budget, causing progress to be lost, and a chance that you may have to find ways to make money, cancel the game or end up having to close your business down due to having no money. 

There can be a variety of financial issues that could occur within the games industry which may prevent the completion of a project for example the business may have though they have got the money to create the project but it turns out they haven’t, which results in the closing of the project unless they can find funding. Another reason may be because the publishers have pulled out because the deadline hasn't been met. This means that the funds stop coming into the project from the publisher funding organisation. When the publishers pull out of a project they will require a fee because of the time the developers have wasted.

Produce an account of why financial planning is so important within the games industry and what the current issues facing the industry are.

You are aiming to comprehensively explain financial issues in the games industry with reference to elucidated examples. You should be using subject terminology consistently and correctly.