How does a game company start?

How does a gaming company start?

A friend of mine was talking today about his desire to start a company, and we got onto the topic of starting a gaming company. What I didn’t tell him at the time is that this idea resurfaced recently in my mind as well.

But I have no idea how a game company starts. Where does the money come from? How do you get the talented staff to join?

The game ideas are pretty much contained in the Scaleable MMORPG article, and I’ve got two game producer contacts at Electronic Arts right here in BC, plus plenty of programmer friends known to me and my friends.

Your thoughts on how to start a gaming company?