I was interviewed by Forbes for a feature article about Gamers at Work. Here's the complete interview.
FORBES: First, could you tell me about Entertainment Media Council?
RAMSAY: Alongside 15 entrepreneurs, CEOs, and senior executives in the video-game industry, I founded Entertainment Media Council and incorporated the association as a nonprofit in September 2008. We set out to solve the video-game industry's biggest challenges—to move the industry forward by supporting developers, publishers, and other business leaders as they find themselves up against the odds. That remains our mission today.
Gamers at Work: Stories Behind the Games People Play and the forthcoming Online Gamers at Work deliver on that promise by providing entrepreneurs with an inside look at what they can expect from their own startup adventures. Through my interviews with nearly 40 founders of major video-game companies, such as Atari cofounder Nolan Bushnell, Electronic Arts founder Trip Hawkins, and Kongregate cofounder Emily Greer, we learn exactly why Lionhead Studios founder and Fable series creator Peter Molyneux OBE called Gamers at Work "a critical resource for new and experienced business leaders."
There is more work to be done, however. We're just getting started.
FORBES: How did you go about securing the interviews? Did you find any of the subjects particularly challenging to get hold of?
RAMSAY: I make a strong effort to personally invite each founder to contribute his or her story to my books. In 2010, I drove up to Ayzenberg Group's [a]list Summit in Napa from San Diego to ask Nolan for an interview. I walked away from that conference with Nolan, Gaikai cofounder David Perry, and Oddworld Inhabitants cofounder Lorne Lanning confirmed, as well as the book deal. If I can't make the pitch directly, I try to find someone who can. Sometimes that's a mutual friend or publicist, but most of the entrepreneurs I've approached readily agreed to do interviews. There have been a few who declined though. That's always disappointing, but their competitors have always been happy to take their place.
FORBES: Many of the interviewees are representatives of the "golden age" of PC games, although many are still working in games today. What was your selection criteria?
RAMSAY: In the United States, half of all startups across major industries can expect to operate beyond their fifth year; however, in the video-game industry, merely existing for five years is a longshot. There are a select few who built lasting enterprises though. Who are they? What can we learn from them? How can we follow their examples? Whether I thought the answers to these questions would be valuable to entrepreneurs guided the selection process. Naturally, many of the industry's most successful founders, who would have inspiring, fascinating, or entertaining stories to share, started their first companies more than ten years ago.
FORBES: Were you particularly struck by any particular stories or responses?
RAMSAY: After Gamers at Work was published, I actually asked several of my interviewees this same question. Trip said that he particularly enjoyed MicroProse cofounder Wild Bill Stealey's recollections about Avalon Hill's casual approach to protecting the company's rights to Civilization because that sort of disregard would never happen today. For me, there was something in every interview that I found memorable. Naughty Dog cofounder Jason Rubin recalled that the studio's relationship with Universal had deteriorated to the extent that Universal wouldn't pay for air conditioning or allow portable units in the building. The team was forced to work shirtless in the hallways!
Aside from the intrigue, I was surprised that everyone was open about their sacrifices. Sony Online Entertainment president John Smedley lamented not being home from work enough in the early days of developing EverQuest to spend time with his family. Many people enjoy dehumanizing corporations as faceless legal instruments for accruing wealth and increasing shareholder value, but the truth is simply that corporations are bodies of people organized for common purposes. As Peter F. Drucker might have said, corporations are living human ecosystems. I wanted to give corporations back their humanity by emphasizing that business is always personal. But I didn't expect to get as much detail as I was provided in that regard.
FORBES: What key lessons for video-game startups did you learn from the book?
RAMSAY: Many of the lessons about starting and building successful companies remain as meaningful, valuable, and relevant today as they did in the four decades covered in Gamers at Work.
Be frugal: if you have money to burn, spend on only what you really need; otherwise, spend nothing. Don Daglow, whose company Stormfront Studios lasted 20 years, reminded us that keeping a studio running is about balancing unpredictable revenue and predictable expenses. You want to always be prepared for the worst case scenario.
Be versatile: stay open to opportunities and avoid locking yourself into any strategy, such as developing only games you want to play. When Troika Games found themselves without their next role-playing game contract, Tim Cain and his cofounders made the tough decision to close down. There were opportunities on the table, but none they could be passionate about. The result was the loss of a great team that created three amazing games in just five years.
Finally, be mindful: produce your flagship title to the best of your abilities, but don't forget that you have a business to run. Many new studios fall apart because everyone involved puts their all into the product and nothing into the company. You have to be fully aware that, at the end of the development cycle, your first game is one of many to come, so ensure that you have the necessary leadership and management expertise on your team to move the studio forward.
FORBES: You've said that the goal of the EMC is to address the "systemic, market-level and corporate problems that make video games such a volatile industry in which to do business." What do you see as those problems? How did Gamers at Work inform your understanding of those problems and how to address them?
RAMSAY: As I said before, most startups in the video-game industry can be expected to close within five years. That is our primary concern, but I don't want to understate our mission. The challenges of starting and building small companies into great companies, as well as the challenges of leading and managing large enterprises, have not become any easier. While today's video games are more enduring thanks in large part to the achievements of those featured in Gamers at Work and Online Gamers at Work, today's developers, publishers, and other video-game companies struggle with the same decisions and plenty of new ones.
How many great studios will never get a chance to shine because the founders—usually artists, designers, and programmers—were not attentive to the financial, legal, and business development needs of their organizations? How many innovative games will we never see because marketing was an afterthought or the people in charge were averse to monetizing art? How many talented developers will never work on their greatest achievements because mismanagement led to burnout, yet another cancelled title, or yet another failed business?
Entertainment Media Council was created because the problems we've seen over our years in the video-game industry—from the high rate of new firm deaths and the increasing difficulty of navigating trends, opportunities, and threats to the demands for a triple bottom line and the consequences of operating creative ventures within walled gardens—are solvable problems. We can change the industry for the better. We can address the toughest challenges facing companies today by bringing the brightest minds in business together. And together, we can leverage our economic strength and intellectual capital to guide us to a bright future. Gamers at Work and Online Gamers at Work inform our understanding of the challenges ahead, but the stories within also reaffirm that we are not powerless to own our destinies.
You can purchase Gamers at Work: Stories Behind the Games People Play at Amazon, Barnes & Noble, Target, Walmart, and many other booksellers around the world.