The value chain
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Transcript of The value chain
Developers
A video game developer might specialize in the development of a particular aspect of the video game, a factor that video game companies recognize and use to their
advantage. For example, programming is just one aspect of the development of video games, as the full realization of the final product involves the input of other
professionals, such as the artist and the musician. Some corporate video game developers usually set aside a substantial budget for the hiring of the very best in the
various stages of the video game development process. They might hire skilled musicians to add a score to the video game, not unlike what occurs during the editing
of a movie, due to the fact that the music in the games contribute to the success of the game. Other roles include designers and testers who will check the final product to
ensure that it is working according to expectations.
Publishers
A video game publisher is a company that publishes video games that they have either developed internally or have had developed by a video game developer. As with book publishers or publishers of DVD movies, video game publishers are responsible for their product's manufacturing and marketing, including market research and all aspects of advertising.
Console Manufacturers/First Party Publishers
A console manufacturer, also known as a first-party video game publisher, is a company that manufactures and distributes video game consoles in addition to permitting third-party publishers to produce games for its platform in return to licensing fees. Historically, some of the most recognized
console manufacturers include:
Atari – first console market leader; now defunct.Mattel – manufactured the Intellivision, a major competitor to Atari in the 80s, offering voice command
modules and Tron; has since exited the video game market.Microsoft – the newest major player in the market, releasing the Xbox, Xbox 360, and the newly released
Xbox One.[1]Nintendo – historically the best known console manufacturer; also the longest running company in the
market, and long-time dominant market leader of the handheld console market.[2]Sega – a significant manufacturer during the 16-bit era, now a third-party publisher.
Sony Computer Entertainment – found worldwide success with its first console, the Sony PlayStation, the PlayStation 2 (which holds the record for best selling home console to date), the PlayStation 3, and the
most recent PlayStation 4.
Distribution and Retail• distribution is the process of delivering video game content as digital
information, without the exchange or purchase of new physical media.• Retail is the sale of goods and services from individuals or businesses to
the end-user. Retailers are a part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit.
• So a game retailer would buy a lot of games and sell less games for a biger price.
Outsourcing Companies • In business, outsourcing involves the contracting out of a business process
to another party (compare business process outsourcing). • Outsourcing includes both foreign and domestic contracting, and
sometimes includes offshoring (relocating a business function to another country). Financial savings from lower international labour rates can provide a major motivation for outsourcing/offshoring.
Press and media
• Press in games have meetings and they have to talk about finding solutions for any problems that journalists write about also their audience may comment something so they need to solve the problems because they want the audience to enjoy the games.
• Media in games check up on comments and criticism towards games and try to solve the problems if they can.