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Pokretanje studija i pravna pitanja
Yes. Join our Cluster where you can get a lot of advice from other companies. The annual membership fee is €300 for full membership or €150 for associate (without voting rights), and the benefits include a lot of discounts, participation in events organized by CGDA and access to an internal Discord where each company has its own representative and you can ask for much more detailed advice from people who have already been successfully going through all this for many years or decades.
We suggest NKD 62.10.01 Video game programming. There is also an activity “Video game publishing”, but this refers to publishing, not development, and certain tenders (such as “Creative Europe: Development of Video Games”) disqualify publishers and focus only on developers. CGDA recommends that you register in NKD 62.10.01 as the predominant activity. This will be especially important when special tenders for video game development are launched exclusively for companies for which this is the predominant activity.
You can, but in that case, the income from gambling will be treated as "other income" for tax purposes, which is not optimal, and if you really start earning a serious amount of money, we still suggest at least considering opening a business.
One way is – after receiving money from platforms (e.g. Steam, Google Play) – to issue an invoice and send the platform an invoice for the same amount that they sent to you. Since companies like Valve or Google are not required to receive these invoices, they do not need this invoice, but you do – you can use this issued invoice as proof of the reason for the payment, which you can then book as income from abroad (on which VAT is not paid). If you receive payments every month, you can send Steam (Valve) an invoice every month for the amount that Steam sent to your account.
A complicated question, but as stated in the question above, studios can book income from platforms as income with which they attach an invoice. Income from abroad is exempt from VAT in accordance with Article 17 of the VAT Act. If it is a company, you can use this amount for salaries (in which case you pay gross costs2), for the purchase of equipment (in which case you pay VAT on the equipment, but you can claim a refund for this VAT if you are in the VAT system), and if it is income that is higher than all your expenses (salaries, equipment, etc.), this means that you will pay corporate tax on it next year, which is 10% for income less than one million euros.
Game development and publication
The first step may be to outline the idea in the form of a Game Design Document (GDD). There are many examples of GDD that can be found on the internet, and GDD for games is similar in difficulty to a movie script. Once you have your GDD developed to a certain level, or at the same time as you are working on it, you can also look for a team. The team depends on the type of game, as 2D games will need 2D artists, 3D games will need 3D artists, narrative games will need a narrative designer, and so on. There is no perfect team for any project. Another option is to first find a team that works well and then see what kind of game you can make together. A good idea would be to test the team's compatibility through a short small project – perhaps by going to a GameJam as a team. If you don't have a team, a good step is to assemble one – either with money or, in the absence of money, by agreeing on shares, but then people will have to believe that your idea is more interesting than someone else's, for which it is useful to have a GDD ready. Also, it's good to learn a skill so that in a small team you can contribute with programming or drawing or level design, not just with an idea.
This is extremely rare in the video game industry. Almost every studio has a ton of ideas of their own, and, if they are successful, they will not seek out other people's ideas, unless it is a paid job.
If you are making a game as a hobby, and everyone on the team has a steady income, it will take a little longer, but it won't cost much, except that you may sometimes have to get better computers and graphics tablets. If you are making a game professionally and full-time, the biggest expense, apart from the aforementioned equipment, will be in wages. Wages depend on how you negotiate with the workers, and there is no standard for that. As the project gets closer to the prototype stage, part of the costs will go to going to professional conferences like Germany's Gamescom (where CGDA has a booth every year where you can arrange meetings) in search of publishers or investors, and at some point you will also have marketing costs. Depending on the type of game, the price and development time can vary from several days/weeks for hypercasual titles to several months/years for PC titles. Many things can affect the price - actors who lend their voices to the characters in the game, localization into different languages, porting the game to several different consoles, and the like.
Registering at partner.steamgames.com is a relatively simple process that involves filling out a form on the Steam website itself regarding where your company or business is based, whether you are a US citizen, etc. The survey results in a completed form (W8 for non-US citizens) that needs to be digitally signed.
We highly recommend not starting your career on Steam but on itch.io, because Steam is a highly saturated and extremely competitive market where you will be "buried" in a sea of titles that are released daily and without exceptional marketing you will most likely not be able to recoup your investment. If you still want to take this step, contrary to professional opinion, creating a new game on Steam costs you $100, which Steam returns after the game earns the first $1,000. In addition, the developer must put together a Store Page and once it passes an internal review by Steam (to clearly explain what the game is), the store page can be published to the public. Two weeks after the public release, the game can be released on Steam for all users. Don't forget to ask Steam for pre-release keys before the release to send to journalists, streamers, and the like.
The itch.io platform is a place where budding indie teams put their titles, and the revenue share is much more favorable for developers. If the game is successful, you can always put it on Steam after or instead of Itch.
The process of producing and releasing a game on consoles is a bit more complicated, but the first step is to request an SDK and hardware developer kits through the official websites of Nintendo, Sony, and Microsoft, which they do not have to approve, and depends on the quality of the game itself. The alternative is to find a studio that can “port” your game to consoles for you.
Approximately 50% of what the game earns. The explanation follows. If a product (premium game or in-game microtransaction) costs $10, for example, and you sold 100 products this month, that appears to be a revenue of 10×100 = $1,000. However, first of all, regional prices are looked at – on Steam, the nominal price of a game in the US and in Russia is not necessarily the same (so-called regional pricing). How much regional pricing affects the final price depends on which region your game sells better or worse, but on average, the average price of a game worldwide is 8% lower than the price that is common for Western Europe or the US. So if your game costs $10 in the US, it will cost the average player $9.2 due to regional pricing. So for 100 copies sold worldwide, the game earned $920. Also, you need to consider chargebacks, i.e. players who requested and received a refund. Their amount is on average between 5% and 10%, and depends on many factors, including the quality of the game in the eyes of the player. $920 minus 10% is $828. After that, Steam takes a 30% withholding tax for all US customers because if you are a company registered in Croatia, the US and Croatia do not have a double taxation agreement. If US customers make up 25% of your total customers on average, i.e. $207 of your $828, Steam will keep their 30%, i.e. $62.10 of the tax on account of US taxes. Of the remaining $765.90, Steam as a platform keeps 30%, i.e. $229.77, and sends the remaining $536.13 to your account. It should be taken into account that bank operators, depending on the contract you have, can take a larger part of that amount, but for example we will assume that they take 2%, i.e. $10.72. This means that you have $525.41 left in your account. If you have a publisher, this means that $525.41 remains in their account, and you only get a part of it (the average publisher takes 30-50% of the game's revenue), so they would send you even less, but if you publish your game yourself, this is the amount you can count on.
Financing
From private sources, there are investor groups (venture capital, business angels, etc.), specialized intermediaries for investors (for example, London's GamesCoLondon), and video game publishers (such as Sweden's Raw Fury, which also has an office in Zagreb). Different investors and publishers prefer different genres, so it is useful to spend some time researching them, and there are many lists of investors, publishers, and other contacts on the Internet. There are also crowdfunding options - Kickstarter, IndieGoGo, etc.
Yes. Companies that develop video games are eligible for an annual competition from the Croatian Audiovisual Centre. HAVC, usually in the autumn, finances two categories – on the one hand, they finance the development of the game (development from idea to prototype), and on the other hand, they finance (with a larger amount) the production of the game to the final product, provided that it is already well developed enough. The amounts for these incentives amount to several tens of thousands of euros, with a tendency to increase every year, as budgets grow. In addition to state funds, there are also European funds as part of the Creative Europe competition, also for the development of a game from idea to prototype, and they offer up to €200,000 per project. All of the above funds are “co-financed”, which means that the company must generally secure part of the funds from other sources, or combine several public sources. If you do not have a company, the PISMO incubator offers incentives for self-employment in the video game industry, which are also in the range of several tens of thousands of euros. Also, if you have private investments, check the Investment Promotion Act, and a Croatian scheme for the return of investments in video games is currently being worked on, modeled after the VGTR in the UK.
Croatia is not yet an approved country for creators on Kickstarter, so you will have to ask someone from an approved country (e.g. Slovenia) to act as an intermediary for you for a certain share of the project (we recommend less than 5%) and when the project is successful you can invoice them to pay you the full amount minus the agreed share. Another option is to open a branch in Slovenia, which is also a simple job, but requires going to the nearest larger city (e.g. Krško) and starting a simple procedure with a notary there.
Video game publishers, if they have the ability, can finance the development and production of your game, invest in marketing, porting, localization, and if they have quality staff, they can also find you distribution and business opportunities, such as obtaining exclusive contracts with platforms that can be very lucrative. It is highly recommended not to hire a publisher who is not willing to invest financially in development, because if they only invest in marketing, it is very difficult to monitor and there are often only negative experiences in the industry (the average extremely low rating of publishers by the domestic sector can be found in our annual anonymous surveys and speaks volumes).
The experience you gain in video game development is useful in many other industries, as the same tools used to create games can be used to create VR simulations that can be used for educational, tourism or marketing purposes, and design skills can be used by artists to produce visuals for marketing purposes. If your team is not inclined to do agency work, it is always possible to seek out other studios and arrange a co-production with them - perhaps your team's skills are needed by another studio right now.
Community, career and education
Places where hobbyists and professionals in the video game industry gather include the GameDev MeetUp and GameDev DrinkUp events that take place monthly in Zagreb, which are announced, among other things, on the Zagreb GameDev Facebook page and the Game Developers Croatia Facebook group. In addition to this Facebook group, there is also a Discord group where hobbyists and professionals meet, at discord.gg/fXwXw4V. Outside of Zagreb there are several locations – Osijek through Game Dev Assembly, Novska through PISMO incubator, Split through Creative Dalmatia and probably many others. There are also many gaming portals where you can get information, such as GameHub TV and multimedia platform, GamePerspectives, IGN Adria, HCL and the like. There are also events like Work In Progress Party where people bring their games and play them and get advice from each other.
In addition to informal gatherings, there are many formal educations where you can learn the basics of programming, design and other skills important for video games – from Zagreb’s Machina Academy to Novalja’s PISMO incubator. Also, in addition to knowledge, it is useful to have some kind of portfolio – this is best complemented by work – one of the options is to go to GameJam competitions that often take place (for example, Global Game Jam, or one of the many online competitions) where you can try to make a small game in a short time. If your goal is to get a job, it is useful for programmers to put their game codes on a git repository so that employers can see your level of knowledge, and it is useful for artists to have a portfolio on one of the art portfolio sites like ArtStation. Following the aforementioned groups and going to events is a good way to find out when a studio is hiring, and many studios are very open to sending them an email with a portfolio
If you have sent your portfolio and CV to all CGDA member companies and even more broadly to companies in Europe and beyond, and you have only received rejections, the problem is not with you but with the whole world, since the global industry is currently (after a period of growth in 2020-2022) in a period of stagnation and restructuring and senior roles are being sought more often. However, what you can do to stand out is to go to events and seek advice from people in the industry who will be happy to tell you what to focus on in building your portfolio.
In addition to the above-mentioned programs, there are also announcements of study programs in Novska and at the University of Zagreb, and there is also a private video game study program at the University of Algebra.
There are several GameJams happening at any given time, with different rules. A list can be found at
Yes. Join our Cluster where you can get a lot of advice from other companies. The annual membership fee is €300 for full membership or €150 for associate (without voting rights), and the benefits include a lot of discounts, participation in events organized by CGDA and access to an internal Discord where each company has its own representative and you can ask for much more detailed advice from people who have already been successfully going through all this for many years or decades.
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