Structure of the industry

Overview

Independent developers, also called indies, create games without traditional publisher support and often focus on innovation and creativity.
Major publishers, like Ubisoft, EA, and Activision, support large-scale development and distribution. They often finance, market, and distribute games developed by smaller studios.
First-party developers are owned by a companies that produce hardware, like Sony, Nintendo, and Microsoft. They develop exclusives games for their respective platforms.

Investment comes from a variety of sources, including venture capital, crowd-sourcing, and publisher funding.
Various models for revenue generation exist in the industry from direct sales, in-app purchases, subscription services, and ad revenue.
The rise of digital distribution platforms, such as Steam, Epic Games Store, and the consoles’ online stores, has reduced physical distribution costs and allowed more games to reach the market.

Games are produced by many teams and roles including game designers, programmers, artists, sound designers, testers, etc.
Game developers use game engines, such as Unity and Unreal Engine, to create and develop games. These engines provide crucial functionalities such as a physics engine or user interface (UI) capabilities.
Quality Assurance (QA) is an essential part of the development cycle, focusing on identifying bugs and areas for improvement before release.

Games in the UK are rated by PEGI (Pan European Game Information), informing customers of the type of content in games.
Different regions have different rating systems and regulatory guidelines that can affect the content and distribution of games.

Mainstream console manufacturers are Sony (PlayStation), Microsoft (Xbox), and Nintendo (Switch).
The mobile gaming market has grown significantly, with platforms like Android and iOS dominating the space.
There’s also the PC gaming market, heavily influenced by digital distribution services like Steam.
The rise of Hybrid platforms, like the Nintendo Switch, have blurred the lines between home and portable gaming.

Intellectual property rights, copyright, trademarks, and patents play significant roles in protecting original game designs and stopping others from profiting from their creations.
Issues of IP in games can include character design, game mechanics, the game’s code, and music.

Esport popularity has been a significant trend, with games like League of Legends and Fortnite creating massive competitive scenes.
In recent years, we’ve seen the rise of Augmented Reality (AR) and Virtual Reality (VR) games, promising new ways to interact and experience gaming.
A move towards games as a service, which offers games that are continually updated and developed over time, rather than as a single release product.
The emergence and growth of ‘Live streaming’ gaming content on platforms like Twitch.