Minimizing Risks in Start-Up Gaming Co's

I read a great article this morning (thanks, Google alerts)about Kalypso, a Baltimore start-up that just launched it's first game, Tropico 3. That's right, Tropico 3. How did Kalypso accomplish the amazing feat of creating the third game in a popular series as their first release? No, my friends, they did not rewrite the laws of physics.. they purchased the right to the series from Take Two, creators of GTA. You see, as the article points out, while the Tropico series has sold hundreds of thousands of copies worldwide (thanks in part, no doubt to both physical and downloadable sales on sites like Gametap & Yahoo! Games), it's still not profitable enough for Take Two to keep in its roster. Not when they have GTA (which sells millions of copies per release) and some of the best game developers in the biz; priorities = profit.

Now, that's not to say that Kalypso, who only opened their doors in June, don't have equally talented programmers and developers on their team. Quite to the contrary, I think this move was GENIUS for a start up, especially one in the cut-throat gaming industry. On the one hand, entrepreneurs "have no place to go but up," states Kalypso founder Deborah Tillet. But on the other hand, the risk of crashing and burning is higher, and of greater personal risk than it is with larger, established companies. So what better way to balance these interests than to purchase a more established IP? I touched on this topic a little while back, but it's certainly no secret that established IPs are an easier sell (and a better idea?) in this current economy. I applaude Kalypso for taking the leap and starting their own company @ a time when everyone is clinging to the known and the safe. I think purchasing the rights to an established title is a perfect & creative way to get on the map, and a chance for Kalypso to become truly innovative much quicker. Huzzah!