April 2007
Introduction to the Game Industry
By Matthew D. Sarrel

Do you love playing games? Do you want to make games? You may love games, but think about this perspective provided by John Williamson, President of Zombie Studios. “Too many applicants think we just sit here and play Halo all day and eat free snickers and drink Dr. Pepper. The hours are long. The entry pay isn’t as great as you think. The job stability isn’t there….and you don’t get to make your game, you are making someone else’s game and you have to play that game every day for two years while it is broken. It really is a Faustian bargain…but I wouldn’t trade this for anything. I get paid to do stuff that I used to be happy doing for free.”

Game Industry Background
The video game industry is relatively young, but then again so is the entire computer industry. In the beginning, the industry was dominated by coin-operated arcade games. Now the emphasis is on personal (rather than communal) gaming hardware, such as Microsoft’s Xbox and Xbox 360, Sony’s PlayStation 2 and PlayStation 3, Nintendo’s Gamecube and Wii, and the PC for the home, and Sony’s PSP, Nintendo’s GBA and DS, and mobile phones for the great outdoors. There are many game software development studios and publishing houses, ranging from those no one has heard of (yet) to massive companies like Activision and Electronic Arts. And the market is on its toes eagerly awaiting the next blockbuster game.

The video game industry is roughly $10 billion a year in the US alone. In 2004 sales of portable software titles broke the $1 billion mark while total software sales was upwards of $6 billion. Sales of console software, portable game software and portable game hardware are growing by roughly 10% per year. And hopes are high that the next generation consoles (Microsoft Xbox 360, Sony PlayStation 3, Nintendo Wii) will innervate hardware and software sales.

Businesses in the Game Industry
There are three major kinds of businesses in the game industry: developers, publishers, and hardware manufacturers. There’s a good deal of overlap as well. Hardware manufacturers also publish and develop games, and most publishers also have in-house development teams. Small, independent studios abound and can provide great opportunities for employment. An independent studio might be a good place to start, because you’ll “get to work on a wide range of projects that other [larger] studios don't have the luxury of doing” says Williamson.

Hardware manufacturers build and sell game platforms, also known as consoles and handhelds. These systems are incredibly popular, but hardware manufacturers usually lose money on platforms. They sell the platform for as little as possible and then make the bulk of their money developing and selling their own games and licensing others.

Developers create games, which can be original, licensed, or conversions. Most original games are created by independent studios who then solicit funding and/or distribution by a publisher. Licensed games are based on intellectual property such as a television show, cartoon, movie, or book. A conversion, also known as a port, is a game that was created for one platform and then converted to another. This is usually done with games that sell very well on the original platform. Some development studios are small and work on one game at a time; others are large and work on many at a time.

Publishers are responsible for taking the game from development to distribution. They usually do all sales and marketing, physical creation of the game (pressing discs) and its packaging. Press and analyst relations are very important in the game industry as media buzz can create a frenzied atmosphere into which a game can be sold quite successfully.

Taking a Game from Concept to the Consumer
Every game starts off as an idea that forms the basis of a story. A game designer then writes a very detailed design document that describes game play, audio and visual style, and main story points. At this point a producer / project manager becomes involved and creates a schedule for the development of the game including milestones or key tasks that must be accomplished. The producer manages budgets and makes sure that the game stays true to the original concept throughout development.

The first step is usually to develop a prototype of the game that demonstrates that the design concepts are sound. Also, now the development studio has a demo of the game to show when soliciting publishers. After the game gets funded, work begins in earnest on programming game code and creating game assets such as art, character models, and sound. This process can take anywhere from several months to several years depending on the scope of the game.

During the process, the work done by various departments is coordinated by the producer. “A good producer is extremely detail oriented and must be a good people person who knows how to motivate,” says Denise Fulton, Austin Studio Head for Midway. The producer must perform a complex balancing act between the creative ideas of programmers, artists, and game designers as well as the original concept, all while keeping the game on schedule and within budget. The producer also communicates with the publisher to advise them of the game’s progress and to help in the developments of sales and marketing materials.

Game development, like most software development, is iterative. This means that periodic builds of the game are assembled from the code and assets that are available. These builds might start off as part of a level and eventually encompass the entire game. The game is tested extensively for errors or bugs and game play is reviewed and tweaked. If the game is being developed for a console, then the console manufacturer becomes involved in the testing of the game. The manufacturer wants to ensure that the game plays flawlessly and consistently before approving the final code. The game is then manufactured and distributed to major retailers such as Amazon and Wal-Mart.

The marketing process runs in parallel to the development and testing process. A publisher and/or hardware manufacturer build awareness of the product and generate consumer interest. Advertising and press coverage are the primary vehicles for this. A good deal of sales and marketing collateral needs to be created before the game can be launched such as sell sheets, product data sheets, and screenshots. The game press funnels information about the game and assets to the consumer to build excitement so the game will sell well.

Now that you understand the basics of the functions within the game industry you can start to focus on which jobs you would find the most rewarding.

Matt Sarrel is executive director of Sarrel Group and a technology journalist based in New York City.

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