College grad founds Cosmic Logic out of untapped workforce
About the time he was graduating with a degree from Okanagan College’s School of Business, Andrew Roberts noticed a potentially lucrative opportunity in the online gaming industry and wondered how long it would take for someone to take advantage of it.
Now 28-years-old, Roberts is the CEO and President of Cosmic Logic, an online video game production company that is headquartered at various Tim Horton’s coffee shops in Kelowna – at least, that’s where his staff of 21 meet regularly to catch up on developments and pitch new ideas for games.
“In 2006 the gaming industry really started to change,” said Roberts. “I saw a huge opportunity for individuals to create their own video games and distribute them online without a publisher. I just kept waiting for someone else to jump on the idea.
“By early 2008 no one had made a move so I decided to pick up my own idea and run with it and it has been a great ride from there.”
Roberts’ approach to operating Cosmic Logic is unique, due to his tenacity and belief in the talent and drive of the virtually untapped local, young workforce.
In early 2008 Roberts approached investors for help with start-up capital but was met with less than enthusiastic responses. Despite having a solid business plan, no one was interested.
“Investors and bankers just don’t get the gaming industry,” said Roberts. “They are a bit out of touch with what is really going on and don’t understand that a mere $100 investment in a game can result in a worldwide phenomenon.”
So rather than acquire start-up capital, Roberts recruited employees who were willing to work for free. His team now consists of computer scientists, graphic artists, and business graduates. He also draws on support and advice from Okanagan College’s SIFE Okanagan and the founders of Club Penguin.
As CEO, Roberts thinks of himself as a producer. He brings together artists and programmers who work to build a game concept. His employees are nearly all under the age of 25 and share a common interest in gaming and a passion for finding fulfillment in their work, something Roberts attributes to his generation.
“I have had no problem finding people who want to get involved with the company because people of my generation want to work toward something they believe in,” said Roberts. “It’s a win-win situation. I cover the cost of the initial software (about $150) and they get to use their skills and creativity to create a video game, which is a dream for a lot of kids.
“They are also really motivated to create a great product because if it sells well, they stand to do well financially. If it flops, they can still use that experience on their resume and as a starting point for future success.”
Cosmic Logic works on a deferred payment structure that divides game revenue equally between the artist, programmer and the company, each earning 33 per cent.
That’s after Microsoft gets its share.
Changes to the online gaming industry have resulted in a huge opening for what Roberts calls basement developers. There is no longer a need for publishers in the gaming industry. Cosmic Logic will sell its games online through Microsoft’s global online platform at a cost ranging from $2 - $10. All users will need is an Xbox 360 system.
“Each week Microsoft announces its new games through a press release so marketing costs for the games are zero,” explained Roberts. “Most real gamers visit gaming blogs to find out what is new and hot and you can imagine that when a game catches on, it doesn’t take long for the downloads to take off.”
According to Roberts, even the worst-selling online games are downloaded between 5,000-10,000 times. Every time one of Cosmic Logic’s games is downloaded Microsoft will earn 30 per cent. Cosmic Logic will divide the remaining 70 per cent three ways.
Cosmic Logic’s first products will be on the market within the next month and Roberts plans on releasing nearly half a dozen games by the end of the year. The games are a visual throwback to the 80s, with a retro-style two-dimensional look that uses hand-drawn fluid animation.
Roberts and his team believe strongly in the product and see its simplified structure as a welcome change to an industry that has become overly sophisticated with garish simulations that cost far too much for the average user.
“Most video games you can buy in stores these days cost about $60 each,” said Roberts. “They are very technical and complex and that works for a lot of people. We are also finding that people love the look and feel of the old Nintendo games and they might want to sit down and just play a fun game for 10 minutes, and not invest hours. That is really the kind of game we are creating and at a cost that is very affordable to the user.”
Roberts quit his full-time job a year ago to devote all of his time to Cosmic Logic’s startup.
“I’m so busy but it doesn’t feel like work,” said Roberts. “I’m using all of my business education and experience working with aspects of finance, human resources, and management. I would almost pay money to do what I am doing now because it is so rewarding.”
And he’s not the only one. His staff is growing exponentially and he gets queries from young artists, designers and programmers on a continual basis who just want to get involved.
“We have people working from their homes all over town and even as far away as Nevada and Toronto,” said Roberts. “They are all looking for the same thing I am – a way to put their talents and energy toward something they believe in. There is a whole segment of young people who have gotten their education and are looking for a way to use it. I hope to help create opportunities for graduates like myself who have so much to offer.”
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For more information:
Christine Ulmer, Public Affairs
Okanagan College
250-862-5616
Okanagan College media release - June 30, 2009