Patterns of ownership and control

Patterns of Ownership

The video game industry is a diverse marketplace with many players ranging from small indie developers to massive multinational corporations.
Major publishers like Activision Blizzard, Electronic Arts, and Ubisoft often have several subsidiaries working to produce various games under their umbrella. These conglomerates tend to dominate the market and exert significant control over many aspects of the industry.
Control by these major corporations has increased through strategic mergers and acquisitions, often absorbing successful indie developers. Examples include Microsoft’s acquisition of Mojang (creators of Minecraft) and Facebook’s acquisition of Beat Games (creators of Beat Saber).
Independent or ‘indie’ developers operate outside this direct control and provide some counter-balance, often experimenting with novel concepts, aesthetics and gameplay mechanics. However, even these developers often rely on large digital distribution platforms (such as Steam) which imposes its own form of control.

Financial power is a crucial factor determining who has control in the video game industry. Larger, well-financed corporations have the means to develop high-budget games, invest in marketing campaigns and control distribution channels.
As a corollary, the ripest opportunities for independent developers usually arise where development and distribution costs are low, such as in mobile gaming or digitally-distributed PC games.
Intellectual Property (IP) control is also significant. Owning an IP rights to a franchise allows a company to control the development of future titles, merchandise and even adaptations into other media.
Finally, popularity and audience demand can often determine who has control. For example, continued popularity of a particular game or series can bolster the controlling power of its developer or publisher.

The balance of ownership and control can shape the type of games that are developed. For instance, major publishers may be risk-averse, focusing on established genres and sequels to popular titles.
Indie developers, in contrast, may take more risks, innovating with game concepts to stand out but might lack the funding for more ambitious projects.
Systems of control also influence the monetization strategies used in games. Heavy reliance on in-game purchases and ad revenue is often a hallmark of mobile games, while premium pricing is more common for console and PC games.

Regulatory bodies such as PEGI in Europe, ESRB in the US, have a degree of control over the content of games through their rating systems.
Governmental regulation can also be a factor. For instance, China has strict regulations on video game content and screen time that can influence the release and nature of games in that market.
These regulatory controls can impact the development choices a company makes in order to ensure their game reaches as broad an audience as possible.