Video Game Industry - Game Industry Value Chain

Game Industry Value Chain

Ben Sawyer of Digitalmill observes that the game industry value chain is made up of six connected and distinctive layers:

  1. Capital and publishing layer: involved in paying for development of new titles and seeking returns through licensing of the titles.
  2. Product and talent layer: includes developers, designers and artists, who may be working under individual contracts or as part of in-house development teams.
  3. Production and tools layer: generates content production tools, game development middleware, customizable game engines, and production management tools.
  4. Distribution layer: or the "publishing" industry, involved in generating and marketing catalogs of games for retail and online distribution.
  5. Hardware (or Virtual Machine or Software Platform) layer: or the providers of the underlying platform, which may be console-based, accessed through online media, or accessed through mobile devices such as smartphones. This layer now includes non-hardware platforms such as virtual machines (e.g. Java or Flash), or software platforms such as browsers or even further Facebook, etc.
  6. End-users layer: or the users/players of the games.

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