The arrival of a new videogame industry dealmaker in Vancouver is being viewed as a vote of confidence in the local industry – and a source of potential opportunities for local companies.
California-based Interactive Studio Management (ISM), which represents independent game developers in business transactions, launched a one-man Vancouver office in January. ISM�s new Vancouver agent is Sean Murch, who was previously in charge of central development for EA Sports.
Murch said ISM helps its videogame developer clients land both work-for-hire service contracts and publishing distribution deals for their own properties.
Howard Donaldson, president of the Digital Media and Wireless Association of BC (DigiBC), called Vancouver�s new ISM presence �very positive news� for Vancouver�s videogame hub.
�[Murch] is likely to attract publishing deals here, which will be good,� Donaldson said. �He could place these anywhere, but because he�s here in Vancouver it gives Vancouver an edge up on placing deals here.�
Donaldson said the focus of Vancouver�s video game industry has shifted in recent years as jobs at large console-based game makers have disappeared and smaller companies have formed to service the mobile and social videogame sectors.
�I think it�s an opportunity, but it�s a tougher place to compete.�
Donaldson added that some of Vancouver�s game companies might be too small and underfunded to survive.
He said the shift to smaller company structures has required more business expertise in the industry.
�I think a lot of our talent underestimates the business skills that are required to be successful,� he said. �Our people are generally good at product development. I�d say less so on marketing strategies and promotion and even business development.�
Given those challenges, Donaldson said, ISM�s arrival is particularly welcome. He said Vancouver has one other videogame agent in town, representing Toronto-based Birthplace Inc.
Why did ISM pick Vancouver?
�Vancouver is just a global hotbed and hub for game development,� Murch said, �and we felt that it was being underserved by the existing agents that operate in this space.�
He said that while Vancouver�s gaming industry still faces competitive challenges and has lost some studios – Ubisoft recently closed its Vancouver operation – Microsoft Game Studios� Vancouver and Victoria locations are growing.
Murch said Vancouver�s overall videogame industry is not shrinking. He added that studios are opting to expand or contract depending on what they�re trying to accomplish in Vancouver.
�If they�re just looking for lowest possible costs of production regardless of quality or genre – then, yeah, certainly there�s going to be places globally that are cheaper to do business,� he said. �But we have such a mature, qualified talent base here in Vancouver, and often in our industry, quality will persevere over cost.�
Donaldson said Vancouver�s videogame industry is healthier than it was a year ago.
�We�re still growing, but we could be growing quite a bit more,� he said, referencing the more positive tax credit regimes in Quebec and Ontario.
Murch said ISM won�t be signing new deals with local companies right away.
�ISM has experienced quite a bit of success and growth so at this particular time, we�ve got a full plate,� he said. �But within the next six to eight months, we�ll be looking to bring on additional clients – and at that time we�ll start talking more to the folks that we already have great relationships with here locally.���
