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1. Structures – ChainValues
Developers:
Gamesdevelopersare involvedinthe creationandproductionof gamesforpersonal computers,
gamesconsoles,social/onlinegames,arcade games,tablets,mobile phonesandotherhandheld
devices.Theirworkinvolves eitherdesign(includingartandanimation) orprogramming. Games
developmentisafast-moving,multi-billionpoundindustry. The makingof agame fromconceptto
finishedproductcantake upto three yearsand involve teamsof upto200 professionals. There are
manystages,includingcreatinganddesigningagame'slookandhow itplays,animatingcharacters
and objects,creatingaudio,programming,localisation,testingandproducing. The gamesdeveloper
jobtitle coversa broadarea of workand there are many specialismswithinthe industry.These
include:
 Qualityassurance tester
 Programmer, withvariousspecialismssuchasnetwork,engine,toolchainandartificial
intelligence
 Audioengineer
 Artist,includingconceptartist,animatorand3D modeller
 Producer
 Editor
 Designer
 Special effectstechnician.
Typical work activities
 Responsibilities varydependingonyourspecialistareabutmay include
 Developingdesignsand/orinitial conceptdesignsforgamesincludinggame play
 Generatinggame scriptsand storyboards
 Creatingthe visual aspectsof the game at the conceptstage
 Using2D or 3D modellingandanimationsoftware,suchasMaya, at the productionstage
 Producingthe audiofeaturesof the game,suchas the character voices,musicandsound
effects
 Programmingthe game usingprogramminglanguagessuchasC++
 Qualitytestinggamesinasystematicandthoroughwayto findproblemsorbugsand
recordingpreciselywhere the problemwasdiscovered
 Solvingcomplextechnical problemsthatoccur withinthe game'sproduction
 Disseminatingknowledge tocolleagues, clients,publishersandgamers
 Understandingcomplexwritteninformation,ideasandinstructions
 Workingcloselywithteammembers tomeetthe needsof aproject
 Planningresourcesandmanagingboththe teamandthe process
 Performingeffectivelyunderpressure andmeetingdeadlinestoensure the game is
completedontime

2. Publisher:
What do game publishersdoandwhatitis about:
 Provide finance forthe entire industry.Thisisnotjustpaying studios,instages,todevelopa
game.It isalso the publishingcostswhichcanoftenbe far,far more.For one top console
game the total cost isnowintothe tensof millions,sothisisn’tinsignificant.However,some
developmentstudiosmake the bigjumptoself-financingtheirwork,andthentheyownthe
IP andcan choose howitis published.
 Take the risk.Thisisa prettybigjob,especiallyforcurrentgenerationconsole games,most
of whichdon’tmake a profit.Thisispartlywhymanyof the world’sbiggestpublishersare
makinglossesjustnowwhilstthe industrybooms.
 Market the game.It isa simple factthatwithzeromarketinga game will have zerosales.
The game industryisa veryyoungand fastchangingindustrysomuch of itsmarketing is
inefficientandoverexpensive.Thismeansthatmanypublishersaren’tdoingagoodjob
here,anotherreasonfortheirlosses.Howeverwhatmarketingexpertisethere isinthe
industryresidesmainlywiththe publishers.
 Create and buildbrands.A lot of the industryfora longtime justpiggybackedother
people’sbrands,sohadnoequityintheirIP.We usedfilms,booksandcelebrities.Andit
wasn’tgood.Nowthe industryisgrowingupand nurturingitsownbrandswithsome
startlingsuccesses(GTA) anda lotof painful growingpains.
 Physicallymanufacture,warehouseanddistributeinventory.Logistics.Thisisahuge pain.
Vastamountsof plasticandcardboard are usedtomove digital informationaroundthe
world.The problemsboggle minds.Just gettingthe timingof everythingandthe inventory
levelsrightisimpossible,itwill alwaysgowrong.Soretailersare outof stock of one game
whilstanothergame isremainderedinthe discountbin.
 Manage the whole industry.Peopleonlybuyconsolestoplaygames.The gamesare
everything.Andthe publishershave total control overthe games.Sotheyhave total control
and poweroverthe industry.Sotheydecide whathappens,how ithappensandwhen.A big
responsibilityand,tobe fair,theytendto try andact forwhat theyperceive tobe the good
of the industry.We don’thave anysignificantEnronsyet.
The most importantthingaboutthe traditional game publishingbusinessmodel isthatthere are
enormouscompetitive advantagesof scale.The biggeryouare the easieritisto run yourbusiness,if
youmuch smallerthanthe biggestplayersthenyousimplycannotcompete.Thisiswhywe have
seensomuch publisherconsolidation;the lawsof economicsmeanthere shouldonlybe ahandful of

3. global publishers.Itiswhathappenedtofilmandrecordedmusic. Howevereventsare notjust
conspiringagainstglobal publishers,theyare conspiringagainstpublishingperse.
 The cost of makinggamesis,inmany cases,comingdown.Thisispartlydownto better
tools,librariesandmiddleware.Itisalsodowntothe farsmallerscale of productrequired
for manyplatforms,includingsome of the bigoneslike XLA andXNA.Thismeansthatwe
have returnedtothe age of the bedroomcoder,orto loose affiliationsof afew people
workingtogetherona project.Thishasbecome massive.There are now more gamesbeing
developedthiswaythaninformal studios.
 Withthe above the riskhas come rightdown.You make a game in yourspare time,if it
worksyoubuy a fast car and a holiday,if itdoesn’tyoujustshrugyourshouldersandtry
again.Thisis exactlywhathappenedinthe old8bit days.
 Platformproliferation.Thishasreallycreptupon us.Abouta decade ago there were two
viable platforms,the PlayStation andthe PC.Now there are lots.Xbox 360, PS3 and Wii,
each of whichismultiple platformsbecause of the online offerings.Xbox2, PSP,DS,iPhone,
Android,nGage andof course the PC,whichis alsonow multiple platformswithcasual
gaming,MMOs, portals,boxedgamesetc.etc.A bigglobal publisherjustcannotdoit all any
more,theyhave to cherrypick.
 Productproliferation.Itusedtobe verysimple,there were ahandful of genresanditwas
easyto keepupand publishastreamof releasesintoeach one.Now we have total
fragmentation,infinityof genres.Justlookatthe thousandsof iPhone gamestosee how
diverse andsometimesbizarre gaminghasbecome.Thishasleftthe bigglobal publishers
deadinthe water,theydon’tunderstandwhatisgoing onand evenif theydidtheyare too
slowwittedandcumbersome todoanythingaboutit.
 Marketinghas changedandmuch of itis now free ornearlyfree.The traditional big
publishermarketingmodelof throwingmillionsattelevisionadvertisingisoutdated,
inefficientandanimmense waste of resources.Buttheycontinue because of inertiaand
because theyknownobetter.These dayswe have somethingcalled the interwebandwith
no moneyorverylittle anda little time youcanrun a veryeffectiveglobal marketing
campaign.Andthe smart people are.Popcap isa prime example.
 Digital distribution.Thisisthe bigone.Withoutplasticandcardboarditis difficultfor
publisherstojustifythemselves.Aswe have seenwithiPod,once youremove physical
inventorymostgamescome tomarketwithouta publisher.Thisleadstoanexplosionin

4. creativityastensof thousandsof new gamesappearthat a publisherwouldneverhave
giventhe time of dayto.
 Brands.The publishershave actuallybeenmostlyvery badatcreatingand buildingbrands.It
isa newthingtomost of themand theydon’tknow what theyare doinga lot of the time
and itshows.Individualscanbuildbrandstoo.Theyoftenhave inhistory.All ittakesisan
instinctive feelforthe brandexperience theyare creating,the brandimage theyare
presentingtothe worldandthe brand valuestheyneedtomaintainandtheyhave cracked
it.
Console Manufactures/FirstParty Publishers:
In termsof manufacturesandthe consoleswhichtheyhave producedIamgoingto talk about
PlayStation,Sony.Sonyhasintroducedseveralgenerationsof consolessofarstartingwiththe highly
popularPlayStation1whichwasone of the mostsuccessful consolesof the 5th
generationboasting
salesof over100+ millionunitsworldwide,itwasalsothe firstconsole toachieve salesof over100
millionunits,whichachieved9yearsand6 monthsafterit wasinitiallylaunched.
The nextconsole thatSonyproducedwasevenmore successful.PlayStation2whichsoldover150+
millionunitsoveritslife time,gainingthe title of the bestsellingconsole of all time,the PlayStation2
had more than 3,800 game titlesreleasedforitgeneratingsalesof over1.5 billioncopies.
The PlayStation3 followedthe PlayStation2with itbeingreleasedonthe 11th
of November2006,
generatingsalesof over75 millionunits,whichincomparisontothe PlayStation2was
disappointing,howeveritdidmarksome interestingadvancementsinthe game technology,suchas
Blu-raydiscsbeingusedinplace of conventionalCDsandthe integrationof downloadablecontent
includinggamesandpurchasable in-game content.
The PlayStation4 hasbeenannouncedandisdue to hitstoreson the 15th
of November2013. This
newconsole aimstoincorporate a social aspectnotseenonother consoles;thisisbyaddingnew
share buttonto the dual shock4 controllerwhichwillallow the playertostreamtheirgameplay
directlytofriends.
Microsofthas alsofounda large place in the console marketandisSony’s maincompetitorinthe
console war.Startingwiththe Xbox Microsoftattemptedtotake on Sony’sPlayStation2.However
thiswas a large challenge even forMicrosoftandso the original Xbox generatedsalesof only24
millionunits,whichwasdwarfedbySony’ssale of over150+ millionsPlayStation2units.Thiswas
partlydownto itsoriginal controllerdesign,whichwasdeemedtoobulkyandlaterexchangedfora
smallerversion.
Microsoftthencreatedthe Xbox 360, a secondattempttotake on the mightof the PlayStation.This
newconsole boastedanimprovedcontroller,andincreasedcapabilitiesonline,aswell asa
revampedXbox Live service.Microsoftsoldoutof Xbox 360s on release inall regionsexceptJapan.
In 2009 IGN ratedthe Xbox 360 as the sixthbestvideogame console of all time.The Xbox 360has

5. soldover87.2 millionunitsworldwide sofar,whichtopssalesof the PlayStation3byjustover 3
millionunits.
Microsofthas recentlyannouncedthe thirdinthe seriesof the Xbox console,the Xbox One.The
Xbox One isto be releasedonthe 22nd
of November2013. The console receivedmixedreviewsatits
E3 release,some commentingthatMicrosoftwere tryingtopunishtheirloyal customerswithastrict
restrictions,suchasthe restrictionsonthe re-sale of gamesandtheirpolitiessurroundingthe
consolesonlinemode.Howeverthe Xbox One doesincludeanexpandedXboxLive service,
improvedKinectfunctionality,cloudcomputing,the abilitytoautomaticallyrecordandshare videos
highlightsfromthe gameplayandintegratedsupportforlive streaminggameplayonline.
Firstparty publishersare the companiesthatmake the hardware like gamesconsole thatgamesare
playedonspecificallySony,Microsoft, andNintendo.Andnow thatmobile phone basedplatforms
are emergingcompaniessuchasApple orSamsung.
These companiesare the gatekeepersof the industry,astheydecide whetherornotto approve
each game targetedfordevelopmenton theirrespective consoleplatforms.Theyhave animmense
amountof powerandinfluence overwhatgetsreleasedwhichtitlesgetprioritymarketing.
Firstparty publishersprovide supporttodevelopandpublishonworkingontheirparticular
platforms.
Distributionand Retail:
DistributingGames/AccessGames –
 Game
 HMV
 Xbox Market
 Amazon
 Gamestation
 PlayStationStore
 Steam
 ITunes
 eBay
 AppsStore
 CEX
OldDistribution:
 Retail Centric– Physical Store
 Reliantonthe manufacture andsupplyof the gamesdiscand packaging
 Requiresmore initial outlaysbythe games publisherstoproduce the discandbox intotheir
profit
 Limitedspace instore solimitedstockandalsothe choices
ModernDistribution:

6.  Gamesavailable online
 PlayStationnetworkisfree if youownaPS3
 Xbox Live issubscriptionbased
 AppStore downloadonapple devices
 Otheronline services
Retailingisbasicallyafterthe companieshasapprovedatype of game theydistribute the game to
gamingstoresto be stackedup on the shelvestobe soldandtheydothisaround the worldinany
gamingstore and the companymakesthe profiton sellingthose gamesandalsothe people that
sellstheminthe retail businessgainsprofit.Overall the retail storeshasbecome biggerandbiggerit
showsthat a higherpercentage cominginandgainingahuge amountof profit.
Outsourcing Companies:
Outsourcingiswhenacompany contractswithan outside providerforservicesorotherbusiness
processes,ratherthanemployingstaff todothese servicesin-house.These servicesmaybe
providedon-siteoroff-site.Typically outsourcingisdone withaneye towardefficiencyandcost-
savingforthe company.Outsourcingcouldbe assimple ashiringa freelancertoedita company
newsletteroras large-scale ashiringanoutsourcingcompanytohandle all accountingandpayroll
functions.
Outsourcingcanbe whena companydirectlyhiresan independentcontractortoa provide service.
Or a company mayhire an outsourcingcompanythateitheremploysorcontractswithworkersto
provide the services.
An outsourcingcompanymaysendworkerstoitsclient'sworkplace orprovide the workspace.
Sometimesoutsourcingcompaniespractice home shoringbyhiringhome-basedworkersorthey
may practice offshoring,bycontractingoutsidethe client’scountryforthe services.
Pressand Media:
Newsthatis sentoutor releasedbythe companymakingthe news.If it'san earningspressrelease
the release will discussthe company'sfinancial resultsforthe recently completedquarterandmay
provide commentsfrommanagement.Pressreleasesoftenlistvaluable contactinformationthatcan
assistinvestorsintheirresearch suchasthe company'swebaddress, contact andaddress
information. Inthatpressthis iswhentheymighttalkaboutreleasing acertaintype of game and
theytalkabout the newproductor a special event talkaboutittothe publicanddescribe aboutit
and whatit islike bytryingto getthe audience’sattentiononyourtype of product.
Mediais whenafterthe gamesisreleasedthe publictalksaboutitand givesita review onwhatthe
game is like theymightputa ratingon a game out of 10 andexplainindetail whythe game couldbe
goodor badand thiscouldget the audience andthe people’sattentionthatare interestedinthe
game and theymightwantto buy the game or not by lookingatthe reviewsthisalsohelpsthemby
watchingvideostellingthe peoplethatwatchesthemtoeithergive themachoice onwhat they
wantto do.