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Having broached the idea of "I will just publish and distribute my own damn game" I have always run into the reality that even coming close to being effective takes more money than I am interested in putting into it. You almost have to use some sort of established portal. Your 'big hit' will always do substantially worse in your hands than a portal that really knows what they are doing unless you are a hard working savant.
The other thing I like is Jeff's discussion on averages. It is the same for every product. The number one product in the field will command the lion's share of the return. Sports is like that on crack. Think of all the people that love to play football. What percentage of them play in the NFL? I would say 99% of people that love to play football pay someone for the chance to play on an organized team let alone get payed to do it. Hell, even in the NFL the pay difference between the star receiver and the backup tight end is very significant. You have to be the best at the niche you are filling and the only way to even start that is to be passionate about it.
So I agree with Jeff that the answer is you have to ignore game ideas you are not passionate about and go with ones you are. This passion actually becomes more important after the game is complete because whether it is very different or looks the same as a host of other games, you are really going to have to sell people on it and demand it gets the coverage it needs to succeed.
P.S. On the "a lot more options" front I just wanted to add a few: Flash-based Virtual Worlds like Webkinz, scratch-card POS publishers like Cherry Credits, free-to-play microtransaction publishers like juggernaut Nexon, and finally web-based 3D games like InstantAction, all of which are emerging platforms for 2008-2009.
I'm asking this because I'm evaluating if it's possible to start my own business without dying in the attempt.
A real business plan for games would include playing the averages but if you want to claim that then you need to have enough games to statistically justify using an average. I think that is what being a publisher is all about.
http://makeitbigingames.com/2006/02/five-founda...
Basically, you right size your life to lower expenses, you don't quit your day job, you find partners to help you, and you build a portfolio of products that eventually allows you to quit your day job.
As for the money there's no harm in researching how much the hits and flops have made in your market. For casual flash games at least there's quite a lot of small developers who have shared this info - gives you a bit of a ballpark idea of what you are getting into.
http://www.iphonesavior.com/2009/01/iphone-deve...
Anyway, thanks Jeff.
here's some sales statistics to get some info what's selling:
http://www.gameproducer.net/category/sales-stat...