Identifying and Managing Potential Risks

When a game is released there is always a risk that it won't sell as well as predicted, and so product management, sales research and advertisement are all key aspects to minimising risks financially. Due to the fact that alot of Publisher's invest alot of money into games they have claim to a large percentage of the profit made from sales, and so if a game fails to sell as well as predicted then the game developer will fail to secure enough money to break even with the cost of development. There is a risk that a game publisher will also cancel their involvement with the production if they believe that the game will not be successful, which doesn't bode well for the development.