Game value chain

Game value chain

1. Game Industry Value Chain

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.