2. First-Party Developer
• In the video game industry, a first-party developer is part of a
company which manufactures a video game console and develops
exclusively for it. First-party developers may use the name of the
company itself (such as Nintendo), have a specific division name (such
as Sony's Polyphony Digital) or have been an independent studio
before being acquired by the console manufacturer (such as Rare or
Naughty Dog)
3. Example of a First Party Developer – Forza
Motorsport
Forza (Italian for "Force") is a popular and critically acclaimed series
of racing video games for Xbox consoles and Microsoft Windows
published by Microsoft Studios. The franchise is currently divided
into two series, the original Forza Motorsport series developed by
Turn 10 Studios and the open world-focused Forza Horizon series
mainly developed by Playground Games.
• Forza seeks to emulate the performance and handling characteristics of a
large number of real-life production, modified and racing cars. Forza is
often seen as Microsoft's answer to Gran Turismo for the PlayStation
systems.
• As of February 2010, the Forza games have sold over 10 million copies
since the release of Forza Motorsport in May 2005.
4. Second-Party Developers
Second-party developer is a colloquial term used by gaming enthusiasts and
media often used to describe two different types of game development
studios:
• Independently owned studios who take development contracts from the platform
holders and what they produce will usually be exclusive to that platform.
• Studios that are partially or wholly owned by the platform holder (also known as a
subsidiary) and what they produce will usually be exclusive to that platform.
In reality, the resulting game is first party (since it is funded by the platform
holder who usually owns the resulting IP), but the term helps to distinguish
independent studios from those directly owned by the platform holder.
These studios may have exclusive publishing agreements with the platform
holder, while maintaining independence.
5. Second-Party Developer Example - Insomniac
Games, Inc.
• Insomniac Games, Inc. is an American video game developer whose corporate
headquarters is located in Burbank, California. It was founded in 1994 by Ted Price as
Xtreme Software, and was renamed Insomniac Games a year later. It has released titles
for the PlayStation, PlayStation 2, PlayStation 3, Xbox 360, PlayStation 4 and Xbox One
video game consoles.
• The company's first project was Disruptor, for the first PlayStation console, whose poor
sales almost led to the company's bankruptcy. Insomniac's next project was Spyro the
Dragon, a successful video game that spawned two sequels within two years. Insomniac
then developed a new franchise, Ratchet & Clank, for the PlayStation 2.
• The company also developed the Resistance series for the PlayStation 3, and released its
first multi-platform game, Fuse in 2013. The company also worked with Microsoft
Studios on 2014's Sunset Overdrive. The company's current projects include an
underwater Metroidvania game called Song of the Deep, an Oculus Rift action-adventure
game titled Edge of Nowhere, and an as-yet untitled Spider-Man game for the
PlayStation 4.
6. Third-Party Developers
• A third-party developer may also publish games, or work for a video game publisher to
develop a title. Both publisher and developer have considerable input in the game's
design and content. However, the publisher's wishes generally override those of the
developer.
• The business arrangement between the developer and publisher is governed by a
contract, which specifies a list of milestones intended to be delivered over a period of
time. By updating its milestones, the publisher verifies that work is progressing quickly
enough to meet its deadline and can direct the developer if the game is not meeting
expectations. When each milestone is completed (and accepted), the publisher pays the
developer an advance on royalties.
• Successful developers may maintain several teams working on different games for
different publishers. Generally, however, third-party developers tend to be small, close-
knit teams. Third-party game development is a volatile sector, since small developers
may be dependent on income from a single publisher; one canceled game may be
devastating to a small developer. Because of this, many small development companies
are short-lived.
7. Third-Party Developer Example - Activision
Publishing, Inc.
• Activision Publishing, Inc. is an American video game publisher. It was
founded on October 1, 1979 and was the world's first independent
developer and distributor of video games for gaming consoles. Its first
products were cartridges for the Atari 2600 video console system published
from July 1980 for the US market and from August 1981 for the
international market (UK). Activision is now one of the largest third party
video game publishers in the world and was also the top publisher for 2007
in the United States.
• Its former CEO is Robert Kotick, who was the Chief Executive Officer of
Activision, Inc. since February 1991 until Activision and Vivendi Games
merged on July 9, 2008 to create the newly formed company known as
Activision Blizzard. On July 25, 2013, Activision Blizzard announced the
purchase of 429 million shares from owner Vivendi, valuing US$2.34 billion,
becoming an independent company.