2. What is a value chain?
■ A value chain is a set of activities that a firm operating in a specific
industry performs in order to deliver a valuable product or service for
the market.
■ The model for the games industry was traditionally fairly simplistic –
the console manufacturers were the main players who produced the
games and provided the accessories. This however has been changing
3. ■ The traditional Games Industry Value Chain is made up of six
connected but distinctive layers
4. Investment
■ The Investment Layer of the game value chain
covers all of the funding for the games development
and production.
■ In the video games industry most developers must
seek outside investment of capital in order to
develop a game.
■ The main investors in the video games industry are
big companies such as Microsoft, EA, Sony,
Nintendo and Activision.
5. Design & Creative
■ The design & creative layer of the game value chain
contains all of the creative aspects of the games
development.
■ Designers and artists operate in this layer.
■ Artists create the visuals and sounds for the game.
■ Concept art is produced in this layer.
■ The designers think about the art style for the
game, the type of game, the story and the target
audience.
6. Production & tools
■ The Production & tools layer of the game value
chain contains any hardware or software which is
used during the games production.
■ The games engine, development tools and
management tools. Some developers use their own
engines whilst others license an engine from an
external source this is known as middleware.
7. Production & tools
■ The Production & tools layer of the game value
chain contains any hardware or software which is
used during the games production.
■ The games engine, development tools and
management tools. Some developers use their own
engines whilst others license an engine from an
external source this is known as middleware.
8. Publisher / Distribution
■ The Publisher/Distribution layer of the computer
games industry value chain summarises the
Publishers involvement in the making of video
games, publishing and marketing games for retail
and online sales.
■ Publishers must market a video game successfully
if they want a good return on an investment.
■ Distribution relies on getting the game to market
and making deals with retailers to stock and
promote new games.
9. Hardware
■ The Hardware layer of the game value chain gives
details of the platform a game is being produced
for.
■ This could be console based, online or via a mobile
device.
■ Some games are produced for multiple platforms at
once which can allow them to be available for as
many customers as possible.
■ This can greatly improve the amount of sales a
game will have.
10. End user
■ The End User layer of the Game Value Chain is the
gamer.
■ The wider the games potential market is the more
customers are likely to purchase the game, leading
to greater profits and a better return on the initial
investment.
■ The profile of a typical gamer has changed a lot over
the years and the games industry has changed to
accommodate this.
