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How to start An American Video Game Development Company?

Game Development
Nov 21, 2020
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The rapid increase in tablets and smartphones and the new and exciting free-to-play video games attract a new customer base that includes the young generation mostly. By seeing this craze of video games among people, Top video game publishers are now providing new gaming innovations.


This increased growth in video games has helped a lot the USA video game industry to have consistent blooming even in recession time. As per the Entertainment Software Association, the gaming industry flourished four times quicker than the American Economy between 2015 to 2020. 

Through this game industry development, multiple video game jobs have bloomed across America, growing more with each passing year. Due to this extensive growth, various video game developers and publishers are looking to start a video game development company in America’s famous cities where people are showing much interest in playing games.

Video game development companies in the USA are hiring more than 42,000 employees in 36 states directly, a 30% enhancement since last year’s report.

If you are also interested in investing in an American video game development company, then you can start it in the famous cities of America such as Los Angeles, Chicago, Las Vegas, New York, etc. Among all these, Los Angeles will be more suitable to start a video game development company. 

But before starting an American video game development company, you have to consider some essential things that will help you set up your gaming business in a new city. 

Start A Video Game Development Company in Los Angeles by Considering these Following Steps:


Step to start videoo game developmnent company

After having an amazing business idea of starting a video game development company, you must take the next step. There are many more things to keep in mind than only starting a business, like registering it.

Here we have provided you with a simple guide to begin the video game company. The below steps will ensure that your development company has well-planned objects, legally tractable, and registered properly.  

#1 Have Proper Plan For Your Business

A clear business plan is significant for expecting success as a businessman. It will guide you to map out the particular business things and also find some new essentials. Here are a few topics to mind-

Costs Included to Start a Video Game Development Company in Chicago

To open your business venture in such an expensive city in America will cost you a lot. The business will need various resources at starting, such as personal computers for developers, a good place for business, specialized and costly computer software, video game consoles, printers, insurance, employees, etc. 

Despite that, the average cost of video game development is estimated between $19.99 to $69.99 as per hour, and commonly high-quality games cost up to $49.99 to $59.99 as per hour.

If you run your business from your house, apartment, or any other place, it will save your cost, and it is also possible to develop a game with highly powered PCs and specialized software. In this way, starting a video game development company in America will save you lots of money.

Ongoing Expenses of the Company

All the hardware and software must be new and updated. You must have a budget of a minimum of $200-$500 monthly for software upgrades and hardware replacements. There will be spent hundreds of dollars monthly on office resources, utilities, and high-speed internet connection.  

Skilled employees who have specialization in different parts of the game development will demand a salary between $50,000 to $1,20,000 or more than that annually.

Read More : 11 Tips to Start with VR Game Development in 2020

For instance, a marketing expert, a manager, and an accountant will pay between $50,000 to $80,000, whereas beta testers and receptionists will demand $10 to $20 per hour.  

Target Market Base

Top video game publishers know that deciding your target market is essential, and it can be anyone right from the kids to old-age people who play video games.

This target market includes millennials in excess as they are passionate about playing amazing and exciting video games. It is good to target this age as they have sufficient optional income to buy video games regularly.

#2 Naming Your Business

Whether you are starting your business in LA, New York, San Francisco, or Chicago, it is necessary to choose a right and appropriate name, sometimes it can be challenging to find a suitable name.

So, if you don’t have any name in your mind already, then visit the guides for naming your business and get their help through brainstorming with a name generator. 

If you go for a sole proprietorship, you might want to run a business name not similar to your own name.

Read More : How to Run a Game Development Company at Home and Get Business Growth?

Also, secure your name for the domain before anyone else does it. You can take the help of naming guides. Also consider-

  • State and federal trademark records
  • Business records of the particular state
  • Availability of web domain
  • Different social media platforms

#3 Create a Legal Entity

A legal business entity like a corporation or limited liability company (LLC) for an American video game development company secures you from being liable personally while using your video game development company. 

You can begin an LLC for yourself by spending minimal state costs of LLC or employing a business formation service for a little extra fee.

#4 Register for All Taxes

You will be required to register for different state and federal taxes before starting a business. To register for different taxes, You will require to apply for an Employee Identification Number (EIN) that is free and easy to get through the IRS website via mail or fax.

#5 Business Credit Card & Bank Account

Using professional business credit and banking accounts is important for personal asset protection. When you mix your business and personal accounts, you put your personal things like car, home, and other valuable things at risk in the business events. Having credit cards and other financing resources on behalf of your business will provide you higher lines of credit, better interest rates, and many more.

#6 Business Accounting

You will start an American video game development company, so it would be better to keep records of all the sources of income and expenses that are crucial to know about the business’s financial evaluation.

Read More: Upcoming Trends of Mobile Game Development: How it will Shape the Future of the Gaming Industry?

Having detailed and accurate accounts also simplifies the annual tax filing. 

#7 Have Necessary Licenses and Permits

If you fail to get essential licenses and permits, it can result in huge fines or also can harm your business to get closed.

  • Some licenses and state permits may be required to run a video game company. In a country like the USA, it is necessary to fulfill the licensing needs to do business.
  • To create a different product, brand, concept, or design, it is advisable to secure your rights by registering for proper copyrights and trademarks.

#8 Insurance of Business

Like permits and licenses, your business requires insurance for operating lawfully and safely. It secures the financial wellbeing of the company in the program of a covered loss.

There are multiple insurance policies generated for various businesses with different kinds of risks. If you are an American video game developer and publisher, you should be aware of the risk types your business can face; you can start with the GLI (General Liability Insurance).

#9 Establish the Brand

Your brand depicts your company’s services and what is the public view of your business. A strong and popular brand will help you with this and make you stand apart from all the competitors. 

#10 Have a Strong Web Presence

An appropriate business website and app permit the users to learn more about the business and its services and products you provide. You can take the help of social media  to get more customers and clients. 

How to Make Money with a Video Game Development Company?


make money with video game development company

  • Starting a video game development company can make you earn a lot of money by generating intriguing and exciting video games for video game PCs, Consoles, and arcades. These fun games are sold in a huge quantity, and there are also chances of earning money via merchandising like printing t-shirts, figurines, etc.


  • These gaming businesses have the ability to earn millions of dollars, and video games have never been famous; it is the advent of online gaming that has increased the importance of video games in people’s lives and have made the profit potential boundless.


  • To make your gaming business more profitable, provide gamers the choice of buying in-app upgrades.


  • There are chances to create agreements with the console giver to protect a segment of the proceeds from online play fees.  

Marketing & Promotion of a Video Game Development Company

For starting a video game development company, connect to potential game buyers by using different channels from which they are exposed frequently.

For promotions, most gamers choose to remain active on different web portals, including YouTube, Social media platforms, game streaming sites, etc. Also, advertise your gaming company on famous sites and portals.  

Many video game development companies have found success via advertisements through magazine ads and TV commercials. Your company’s promotional approaches will hinge ultimately as per the game type you are trying to sell. 

Market research is also essential to decide the suitable sources to connect with the other video game players who are also much interested in the specific video games developed by your company. 

Read More: How to download and play Pokemon Go video Game

The best way to promote and attract new customers for an American video game development company is to develop a premium-quality video game that remains exciting and enjoyable for a long-time period.  

Some of the video game players create loyalty programs to particular game development companies based on the fun factor of the company’s initial games.

Put your efforts to create a deep and effective connection with gamers by offering them amazing content so that they can become loyal to you. Also, keep in mind to provide a free download for one stage in your game to gain customer’s trust.  

Will it be Good to Enter into the Gaming Industry?

To entertain people, entering the gaming industry is the best way as it provides a chance to experience a shared joy, so opening a video game development company will come up as a reward. The video game industry has brought people together to share their exciting and fun experience. 

hire game development company

Starting a video game development company will be quite fun as many people have much interest in playing online video games and casino games as well, and this city is known as a hub for this kind of fun. 

The video game development industry is growing faster day-by-day and becoming popular because of current improvements in its graphics, the advent of VR technology, online gaming development, etc.

Most Popular and Suitable Cities of the USA for Starting Video Game Development Companies

When you have decided to enter the gaming industry, you must know about what cities in America would be the best choice for opening a video game development company. Here are the top 5 cities in the USA that include multinational video game software and hardware development company

  • Los Angeles, CA
  • San Francisco, CA
  • New York, NY
  • Seattle, WA
  • Austin, TX

But before selecting any of the American cities, consider various things such as the climate, environment, rent, insurance cost, surrounding entertainment, market trends, taxes, etc.     

Summing Up

This article has discussed the significant points for opening a video game development company in the USA. The best American City to start your gaming business in Los Angeles, as people have more interest in video games there than any other city.

Following this guide, as mentioned above, you can successfully plan your venture and can target a huge customer base. 

If you want any help to start a video game development company or create one of the fun games, you can contact BR Softech. Being a leading game service provider, we create highly unique and amazing gaming solutions for our customers. To have any assistance, connect with us!

Saloni Agrawal

I am a passionate and full-time writer with experience in academic writing and blogs related to the IT sector, High-tech, and lifestyle. I’ve grown my skills of content writing with the time and have keen interest in learning and exploring new things.

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