I'm currently researching game hosting as an add-on to my web hosting business. Are there any not-so-obvious expenses one should look out for? For instance licensing.. what are the usual t&c's for your average game. Whats the average cost per install? Any help along these lines would be greatly appreciated.
over-saturated... more so then web hosting. It's really really really hard to get into the industry so late in the game. Hard to make a name for yourself... Not worth the initial investment and you'd be lucky if you make your invesment back within 5 years if not at all. A few big companies pretty much dominate it.
It is my opinion that the market for game servers is not as stable because you have younger adults or teenagers purchasing your services. I could see timely payment being an issue...
Just what I think, I haven't tried this yet.
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We have been supplying game servers in the UK for 2 years and as said the market is becoming flooded and as what happend a few years ago in the hosting the big companies that can afford to run at a loss are doing to get a bigger market share.
Alos as cybexhost pointed out due to their age payments can be a nightmare to manage we have a stable base of customers mainly older clans and then a rollover customer base of the here one month gone the next customers. not having loads of nice control panels do do it all for you setting up a good game server can be time consuming.
The hardware is also more expensive and you are limited on how many servers you can run per box. as they soon eat though CPU and trust me no one complains like a group of 15 year olds so your support has to be spot on and avaliable when people are using the servers mainly 3pm till 1am every night and all weekend. On a Dual Xeon Server we may run around 10 game servers but could host 100's of web customers, on top of all this you need bandwidth and lots of it we get though over 150 GBs a day easy.
I am not trying to put you off but I have seen many people and web hosts turn to gaming and be unable to keep up more than a month or two, if you are serious you will need to be prepared.
If you have any questions or need help please feel free to PM and I will answer any questions I can.