Going on contract

That would probably be ideal I think. What do you think the chances of it working are?

I was going to suggest something like this. Maybe calling it unpaid leave might work better.
 
Contracting generally does not equate to 'working your own hours', the client will want you sitting at your desk like any other job.

You also won't get investment unless you have a solid business model, working prototypes etc.. You're just some guy who wants to code a game in their eyes. 'Angel Investors' invest in companies not pet projects no matter how much potential they have.

There are two ways you could go about it:
- Start out making small simple games you can work on in the evenings, for android/iphone app-stores etc. Get a solid portfolio going and cash will slowly trickle in, hopefully enough to at some point quit your day job and work on your more ambitions game.
- Get some simple half-day job, working in a store etc.. live reaaaally simply and then have the time for your project.

^This.

What you basically need before even thinking of approaching angel investors: Solid business plan with strong revenue forecasts. Intent from one or more potential clients (in your case publishers), on paper. And working prototypes!

If I'm being brutally honest, I don't think any venture capital firm or angel network will go for a game, especially if you haven't got a track record of profitable games.

Your options are basically part-time contract work, bootstrapping, or borrowing from friends/family. If you go for the latter two, you're taking a massive risk with something like a game, but hey, maybe it works!

I made this move end of last year, all I can say is, good luck! It's worth it, but be ready to work your fingers to the bone!

Hope it works out for you!
 
Goodluck man! Sometimes just diving in and doing it makes the difference. If you single...do it
 
An update...

I revised my game idea to one that will be much cheaper to make in terms of artwork. It looks like I will be able to self fund as long as I get a loan from FNB equal to the capital I am putting in myself. I've already got a few quotes for the artwork.

Its also a simpler game, so I estimate the bulk of it could be finished in 3 months, and released in some form or fashion in 6 months.

I'll quit my job as soon as I have the loan secured.
 
Thanks guys. I'm really excited about it and am going to put my all into it. You can get that as soon as I quit, you guys will know about it!

Plus as soon as I have a demo/beta ready, I'll need some testers.
 
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