The games industry has grown into a multi-billion pound industry that rivals film in revenue and prestige. Originally perceived as a hobbyist culture in the 1970s, the industry is constantly changing as technology advances. The industry is made up of developers, publishers, distributors, hardware manufacturers, and consumers. Traditionally, games moved from developers to publishers to distributors and retailers, and then to consumers. However, new technologies and distribution methods have changed this process, with some games going directly from developers to digital distribution platforms and consumers.

1. THE GAMES INDUSTRY
INDUSTRY STRUCTURE

2. INTRODUCTION
• The games industry, once a niche form
of interactive entertainment often
dismissed as being for children or
teenage boys, is now a multi-billion
pound industry that rivals the film
industry in terms of revenue and
prestige.

3. INTRODUCTION
• Gaming was perceived as having
‘hobby culture’ (created by
enthusiasts rather than big business) as
recently as the 1970s so this is relatively
young industry and the way it functions
is constantly changing.

4. INTRODUCTION
• The main reason for this is due to it
being a technology led industry, and
as software and hardware develops so
does the framework around which
games are created, sold and
consumed.

5. INSTITUTIONS
The games industry is made up of the
following institutions:
Developer - Publisher – Distributor –
Hardware – Consumer

6. PUBLISHERS
These are companies that are
responsible for the marketing and
distribution of the game.

7. DISTRIBUTOR
A distributor works with retailers (shops,
online) to make product available for
the consumers to purchase. In the
games industry the Publisher usually
handles the distribution.

8. HARDWARE MANUFACTURERS
While developers create software, other
companies create the hardware that the
games run on. In the games industry the
major players are Microsoft, Sony and
Nintendo who make the Xbox 360,
PlayStation 3 and Wii respectively. There are,
however, many other types of hardware
apart from consoles on which games can be
played such as PC, phones and handhelds
(DS, PSP).

9. CONSUMER
• Or ‘the audience’ - anyone that
buys, plays, downloads games.

10. STRUCTURE
• Basic illustration of how the
videogames industry functions and the
process in which games go from
‘concept to consumption’:
• Developer - Publisher – Marketer-
Distributor – Hardware -Retail–
Consumer

11. HOWEVER…….
• Because of new
technology, convergence and new
ways of distribution the development
of concept to consumption has
changed
• E.G.
developer-Facebook-Consumer

12. PAIRED ACTIVITY/FEEDBACK
• Research into two games!
• One which fits into the traditional model of concept to
consumption and one which fits into the new model of
concept to consumption
• Using your notes describe the process of the game from
development to consumerism!
• Who is the developer? What stages were taken for the
game to reach its audience? What is the revenue of the
game? Where can you play the game? Etc….