Another overview of the gaming industry except this one has subheadings to structure it. This website talks about key businesses which are publishing, development, distribution and hardware manufacturers (console makers Sony, Nintendo, Microsoft). I just learnt that Publishers often own all or parts of a development or distribution company and the hardware manufacturers all act as publishers for their own 1st party products. Competitors seeking to do business could be working side by side.
Game publishers is responsible for bringing the game to the market, that would mean if anything went wrong the publishers will be at risk; they will lose money that they invest in the game. Apparently the publishers give royalties to developers in advance for the developing of the games. After the publisher sells the games the money received goes back to the publisher until the full amount is made up for the advance given to developers. If the game is successful, the publisher recovers the investment and the developer earns additional royalties.
Computer game developers are programmers, artists, designers, sound engineers, musicians, producers, writers and many others. Developers pitch their game idea to a publisher who agrees to fund the development. This is where an advance is given against future royalties. On achieving set milestones the developers receive payments – publisher funding ios the major method to bringing a product to market.
It says that a distributor’s job is to get the finished games from the publisher into the shops and that publisher do not deal directly with the shops but sells to distributors who sell the game to shops they deal with. This proves to be a longer cycle than I anticipated.
2 main types of hardware: PC/Macs and consoles. Anyone with money can develop and publish games on a PC but while games created for consoles by Sony, Nintendo etc are closed systems (only consoles licensed by manufacturer may develop or publish them games).