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What does Iterative Game Design mean?

Iterative game design is the process by which a video game is repeatedly proposed, prototyped, play tested and reevaluated prior to working product release. Iterative game design operates on the following principle: It is unrealistic to create an ideal product on the first try.

By creating and testing working models on core criteria (such as fun), game designers are able to refine product on a gradual basis and increase market success potential.