Wednesday, 12 November 2014

Assignment 1: Task 3 - Game Industry Structure and Ownership




Game Industry: Structure & Ownership


For the second media industry, I decided to look at the structure and ownership of the games industry. This research involved looking for the big main companies that make the games and the teams and people that are behind the processes of creating these games. As well as these things I also looked at many other areas.

Nowadays, to develop top of the range computer games titles large teams of people are needed and this can cost a lot of money as not only does the game need a large budget but because of the large amount of workers more money is needed for the people who do these jobs. Developing games begins by researching a specific market and then the development of the game in national and international operations. Teams of people will then work to produce documents involving game designs from which all the of key points are included that make up the final game. These are then drawn and  the developing team set down all possible paths the games can take players and any of the mechanics of actual game play that are relevant. If the game has story or narrative elements scripting and story-boarding will also take place.

The video game industry, also referred to as Interactive Entertainment Industry,  has grown since the mid-1970's from focused markets to now being involved in mainstream markets. The name 'interactive entertainment' refers to the producing and distributing of the products and services, of which the outcomes can be influenced by users through feedback. The interactive media sector is worth several billion pounds, and employs over 34,000 people. Thus interactive media is increasingly becoming a part of everyday life.

Game Industry Value Chain:
Within the structure of the game industry a game value chain was made. This chain is made up of six layers that are connected together. Chains one and two are involved in the capital & publishing Layers and this part of the chain is involved in paying for the development of new game titles. The second is the Product & Talent this includes the developers, designers and the artists of the games who may have an individual contract or are part of an in-house development team. Parts three and four of the chain are the Production & Tools Layer that focuses on the generation of production tools, game development, custom game engines and production management tools. And the fourth is the Distribution Layer which, is involved in the generating and marketing of games for retail and online distribution. The fifth part of the chain is the Hardware Layer that is the providers of the underlining platform. And finally the End Users Layer which is the user buying and playing the game.

The diagram shows the main structure of all the game industry and and where all the parts lead to after all the areas have finished what they are doing for the game.
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Practices In The UK:
In the United Kingdom the game industry is now the third largest industry that can be found in the world. However, like in other industry areas, companies in the UK have been bought out by other, larger companies. Before the tax relief was introduced there was many fears that the UK would fall behind on other leading games companies which, would cause a major drop in the economy in the UK.

Video Game Companies
Just like in the film industry (and many other industries) There are five main game companies that are involved in the developing and selling of the games. The main five companies are: Activision, Electronic Arts (EA), Nintendo, Sony and Capcom.

The first company, Activision, is an American video game publishing company which was founded October 1st 1979 and became the world's first independent developer and distributor of video games for games consoles. Secondly, Electronic Art, which is located at the headquarters in Redwood City, California. EA is the world's largest interactive entertainment software company that was founded in 1982, the company develops, publishes and distributes software worldwide for PCs and consoles. Next, Nintendo which is a very popular company. This is a Japanese consumer electronics company that sells games all around the world and is headquartered in Kyoto, Japan. Nintendo is the world's largest video game company by revenue. Nintendo was founded on September 23, 1889. After this is Sony. Its diversified business is primarily focused on the electronics, game, entertainment and financial services sectors. This company is one of the many leading games manufacturers of electronic products for not only the consumer but for professional markets. Finally, Capcom which is a Japanese developer and publisher of video games and is known for creating multi-million pounds worth on many game series'.

Video Game Development:
 I then researched the area of video game development. This is the process of creating a video game. The development of a game is undertaken by the person with the role of game developer, this could be the role of one person or even a large business. Around the 1990's, video games systems became modernised and even simpler to use. This also meant that games became more complex and more realistic looking because there was an increase of better graphics technology.
Video games then became more popular with a younger audience and in the early 2000's, video games reached a very high popularity range and people became more interested in this area. This then lead to many games series' becoming more popular cultural icons with a similar approach to TV shows. The games that became most popular were the Halo series and the Grand Theft Auto series.

Large companies have become bigger due to buying the smaller companies. This has given people the impression that the game industry is one of the most important and largest sectors in media, some popular computer games that have been made, have been recorded to have broken records in sales for entertainment products. The computer game industry is a securely formed business as a major part in the UK’s modern-day media landscape. This industry has just under 9,000 employees, with about 220 businesses classed as game developers. There are many different areas in the gaming industry and a lot of job roles within these sections. In modern times games have been developed in a new way that allows players to feel as though they are part of the games and give them more of an enjoyable experience.

Conclusion
To conclude, from my research I have discovered that the game industry is one of the largest and most important industry areas as it offers up more jobs and makes a lot of money through the many businesses that it owns. The game industry also uses elements like conglomerates and integration in order to also build up each company and gain more money. This also means that companies can use music, visuals and more in their own games as long as they own the original company. This also means that the larger companies can save money. Also, in more modern times there is now a convergence with technology in games as more things can be purchased for games and even versions of a game on a mobile device. And through other technologies people can get important information and codes for games.

Partner's Research
I was then given the research of my partner who researched briefly the different job roles and how there is a convergence with new technologies for new games and games consoles.

 We both researched the areas in which a games development takes place and we compared these things very well. The similarities in this part of the research was that we included the same roles that are used when a game is being created and who then gets the game after these parts are completed. However, a difference is that they have included information about the people who then go on to test the game, including information about what to do if there are any glitches or bugs within the game. They have then mentioned that when the issues with the game have been resolved, the game will be given to the public.

For the next part of my partner's research they have found out the interactivity that people can now have with the games. This information includes many examples of how the games have been developed to do certain things. For example, some games now utilise split screen so that people can work together or do versus modes in which they can play their favourite games with friends. This shows a large development in how games have changed from just passing on the controller to the next person who wants to play. They have also shown that people can now play games online with the world and how this change has effected people playing games and the social activities that can now be included when young people play games. This is expressed through the use of a wireless or wired headset.

Some of the other research also talks about how games have come to a new level and how this advantage can make games more interesting for the people playing them. Some examples included are: Xbox One having Kinect motion sensor, which gives the player the ability to play the game without needing to use a controller. Another example is that PlayStation uses a 'move' feature which allows the user to control what is on the screen by moving the controller itself. This research also mentions how the Wii uses endless accessories like the Wii U, Wii Fit, Dance Mat, Sing Star Microphones and a Nun chuck. This allows the user to feel more involved in the game.

To conclude, most of the research form my partner was research that I had not looked up and this allowed me to find out more about the subject and led me to find out information about how people can be integrated and used for the game. However, some information I have also gathered and so this can be used in order to have a wide range of knowledge.

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