Monday 19 December 2016

Task 1 - The Value Chain

Task 1 - Structure - The Value Chain




Developers


A video game developer is a type of software developer that specialises in the video game industry. A game development team can consist of large teams or even a single person. A large development team include specialists in specific areas of game development. These specialists form sections of a development team and work under a leaders to perform certain tasks to help create the game. These specialisations can include: programming, artwork, design, QA testing and many more.


There are four types of game developers, first-party developers, second-party developers, third-part developers and independent developers.
A first-party developer is a development team which manufactures video game consoles then develops games exclusively for their consoles. Examples of first party companies are: Nintendo, who use the name Nintendo for both the console and game development. However Sony use a specific section as their name called "Sony's Polyphony Digital" aswell as a completely different name "Rare" as separate companies which they own to develop games for their consoles.


second-party developer can be one of two things: An independently owned studio who take contracts from the console manufacturers and release exclusives for their platform or studios that are partially or wholly owned by the console manufacturers. An example


Third-party developers have a contract between the developer and publisher of the game, specifying the milestones of the game developing process.


Independent developers are developers who aren't owned by anyone but themselves. This type of developer would either need to create their own game then try and get it visible to the public using the internet, or they could have an agreement with the console manufacturers.



Publishers


Video game publishers are companies which publish video games that are either developed internally or externally by a video game development team. Video game publishers are responsible for the marking and manufacturing of their products aswell as researching market trends and all aspects of advertising.

Publishers often finance the development the development of the game, sometimes by paying a video game developer or paying a studio. Large video game publishers also have the task of distributing the games that they publish, however most smaller companies will hire distribution companies to do it for them.#

An example of a publishing company is Valve who have probably published the most games out of all companies using their program, Steam, which is the most popular gaming program for PC.



Console Manufacturers/First Party Publishers


Console Manufacturers and First Party Publishers are the companies involve in marketing and selling their consoles aswell as either hiring others or creating video games themselves exclusively for their console. Console manufacturers and First Party Publishers are in charge of creating the hardware needed to have a functioning console to run the current generation of games and rival the other big companies.
These companies are the 'gatekeepers' of the industry, as they decide whether or not to approve each game targeted for development on their respective console platforms. They have an immense amount of power and influence over what gets released and which titles get priority marketing.
Distribution and Retail


In the video game industry, digital distribution is the process of delivering video game content as digital information, without the exchange or purchase of new physical media. This process has existed since the early 1980s, but it was only with network advancements in bandwidth capabilities in the early 2000s that digital distribution became more prominent as a method of selling games. Currently, the process is dominated by online distribution over broadband internet.
To facilitate the sale of games, various game companies have created their own platforms for digital distribution. These platforms, such as Steam, Origin, and Xbox Live Marketplace, provide centralised services to purchase and download digital content for either specific video game consoles or PCs. Some platforms may also serve as digital rights management systems, limiting the use of purchased items to one account.

Retail markets and shops have a very ancient history, dating back to antiquity. Retailing involves the process of selling consumer goods or services to customers through multiple channels of distribution to earn a profit. Retailers satisfy demand identified through a supply chain

Outsourcing Companies

Outsourcing companies provide services to the developers and publishers of other companies, the services they provide includes having to do the art, animation and design; rendering, graphics and physics engines and programming; audio and sound design; and localisation. This method is now getting more common to use because it is a great method that allows other companies to reduce the cost of their production rather than doing all the work internally or by themselves. 
An example of a manufacturing company outsourcing would be Dell buying some of its computer components from another manufacturer in order to save on production costs. Alternatively, businesses may decide to outsource book-keeping duties to independent accounting firms, as it may be cheaper than retaining an in-house accountant.



Press and Media


The Press and Media are involved in making new video games more known by having them view able on certain websites or within magazines.
Video game developers will use many things to their advantage to help sell their games. Developers can promote their games by gathering info on other rivalling companies and try to create a more unique/ better game than them by looking at past reviews found on online Media. The media is also useful for the public to see whether or not they would like to purchase a game, for example, on steam everyone can view ratings of a game to see if the majority of the people who played it thought it was worth buying.