A very interesting thread Fastlane, and it touches on some good points.
I have a huge amount I would like to say and ask about this subject, although I think it would be mostly lost, being now way off topic... Certainly needs a disussion thread of its own this one.
I think that there will always be different approaches, and of course sometimes these new ways of doing things change the way people do business, but on the whole, thats a rare thing indeed. That said I think what Jamie really highlights is that there may well be approaches that are better suited to the more advanced users here, than they would be for a new developer.
As a new developer you will need anything from 6-18 months before you can grasp what the A6 engine can actually do, and get some idea for the market you might want to go for. Everyone has the game they want to make, but that's not to say it will be successful, you need to find your niche. Spend those early months creating...small games, little testers, if your target game is going to be a driving game, make mini games related to driving. make a block drive around... break it up into small parts so you can learn each stage and requirment.
Personally I have been developing game content for over a decade but only in the last 6 months, after more than 2 years with A6, do I think I am 'nearly' ready to put together a commercial title.
Going back to the earlier post from Fastlane: Basically this is my production plan around which I am building my business plan. From my experience working alongside my AAA Senior Producer friend, I have learned a great deal about how they do business.
Much of their time is spent concepting, that is, coming up with ideas for a game, basic style, gameplay etc. This is never more than 2xA4. The ideas that make it this far, often then have images added to them, generally sourced from the web. Pictures that convey style, ideas, similiar scenes and so forth.
If they feel very strongly about a certain concept they will then take it to the next stage, although as they have a good relationship with their publishers they don't always have to produce a working demo, and often just pitch the idea. However I don't think people here have that luxury. So concepts that are developed further, usually bcz the publisher has said they would like to see more of X concept, are turned into a small playable or self running demo. Usually no more than a level, some CGI and music, things that help carry the ambience and feel. Unique features are often showcased at this stage, as well as artistic concept sketches and anything else that can help to quickly convey the concept and proof that it is possible.
We could all suggest a real time MMorpg with 10million people playing in one server, but if its not possible your wasting your time.
I know I have already gone on to long, but I really wanted to reply to Ken's excellent post. First off....
Quote:
A split of profits for team members is a fairy tale.
I couldnt agree with you more. 99-100% this is a sign that the person is not in a position to put together a project and has no real understanding of the business. I have no knowledge of a succesful project based around this strategy. When I asked my firend he said, 'for % profits?' and laughed for a good few minutes...
Your comments about publishers forcing your hand, in terms of who's staff will finish the project, I have to say this is not as uncommon as people may think. As far as I can tell, with my limited experience with my friends development company, their publisher had quite a lot of say over how the game would be developed and who would do the developing. Work that was outsourced was also redirected, simply the publisher can often do the same task cheaper, or at least with less loss to them. It doesn't only apply to your staff, I know that their sequel title was less succesful for this very reason. The original games appeal was that it didn't follow the style of COD , Doom3 and so forth, yet the publisher wanted the sequel to adopt more elements from these titles to be more competative. A bad call if you ask me...and sales certainly suggest I am on the side of right here 
That said, to develop a proof-of-concept as I suggest and fastlane defines, would require a minimal team, in fact if you can't develop your proof with as few as 2-4 people, your not ready to proof. So with that said, to complete a title you will need more like 20-30 staff and anything upwards from there.
Sorry that I don't name the developers directly, but I am unsure as to the legal position when discussing general business practice. They had 40 staff, artists, programmers and so forth, as well as outsourcing large chunks of their development to 3rd party companies. So as long as your proof team is small I don't think you would have too many problems ensuring their employment should the concept be picked up.
When we talk about how much it will cost to employ the people who have given you their expertise to manage, you have to consider the realistic costs, as you suggest, and you also have to factor in that these people worked for 2-3 months, unpaid, and took the gamble on your concept. Simultaneously you have to consider that they choose to do this work as they also believed in the concept and wanted a piece of that pie.
Obviously I think exact figures really do depend on the scale of your project and the expected workload to compelte the project as well as the required skill level.
As a result I would look to offer a competative and realistic salary, a minumum emplyment contract term of 12 months, with appropraite benefits and so forth, based on similiar positions advertised via web agencies and so forth.
I would then offer a share option as you suggest, although I would prefer this to be shares in the new dev company, rather than the title itself, as I think this would be very much a one of business strategy, designed to launch a new indi developer, and therefore that investment in the companies future would be more appealing to me. It would mean that should the company win new contracts, possibly delivering already concepted titles from outside the firm, the people who invested in that first demo and ultimatly the company will benefit from that first title and also from the future successes of the company, god willing.
Lets look at the failures of this plan? You get the small team together and make your proof, and its not picked up? This could take a few months and maybe even longer. Is this a real loss? Ok yes it is, if you set your heart on making one proof and becoming a millionair, but I can't see it like that. First of all its a portfolio addition, that could win you the next proof. All people involved in the project would be part of something bigger than the sum of its parts, that no doubt would be showcased here on the forum if not on the main conitec site....This in turn generates more opportunitues for all envolved. It also proves you can work as a team, showing great skill in programming is good, but if you don't work well in a team, or an unknown in that respect, you are less likely to find employment.
Im going to shut up now, as I could probably go on about this for pages and pages. It is a subject that is close to my heart at the moment, while I try to navigate my way through the war zone of this business...
Thanks for reading my thoughts, I look forward to responses.
Very interesting brain food 
