Top-ten actors in videogame's landscape

Behind the screens: The Movers and Shakers of the Video Game Industry

From visionary developers and influential companies to passionate communities and game-changing technologies, this entry will introduce you to the remarkable main actors driving the innovation, creativity, and boundless enthusiasm that define the world of video games.

Since their commercial birth in the 1950s as a technological oddity at a science fair, video games have been on an inexorable rise. Initially seen as children’s entertainment, their innovation, creativity and adaptability have enabled them to attract fans of all ages and backgrounds.

The creation of video games is a production chain that reminds me a lot of comic books, where the difficulty lies in the production of the stories, the drawing, the scripting, and so on. Once this is done, the same story is printed several times: first as part of a regular series, then in deluxe and compilation editions, etc.

Complete List of actors involved

We will look at the different actors and their roles, from production to the final consumer. This will allow us to understand the responsibilities and interests of each.

1. Studios & Game Developers: These are the creative minds and programmers who design and build video games. Examples: Naughty Dog (known for the Uncharted series and The Last of Us), CD Projekt Red (The Witcher series) and Mojang (creators of Minecraft).
2. Game Engine Developers: Creators of the software engines that power the physics, graphics and interactions of a game. Examples: Epic Games (creator of the Unreal engine used in many games), Unity Technologies (creator of the Unity game engine), and DICE (known for using the Frostbite engine in games such as Battlefield).
3. Hardware manufacturers: Companies that make game consoles, PCs and mobile devices. Examples: Sony (PlayStation), Microsoft (Xbox), Nintendo (Nintendo Switch), ASUS (PC hardware) and Samsung (makers of mobile devices used for gaming).
4. Publisher: Companies that finance, market and distribute video games. Examples: Electronic Arts (EA), Ubisoft, Activision Blizzard and Square Enix.
5. Distributors and retailers: Companies involved in selling copies of games and/or game hardware. There is also a special category of these that is related to the massive sale of keys. We could think of them as “factory outlets”. Examples: GameStop, Best Buy and Amazon in the first category and Fanatical, Humble Bundle and G2A in the second.
6. Digital Marketplate or platforms: Online platforms such as Steam, PlayStation Network and Xbox Live where games are distributed digitally. Examples: Steam (Valve Corporation), PlayStation Network (Sony), Xbox Live (Microsoft) and Epic Games Store.
7. Magazines, blogs, game reviewers and critics: Individuals and publications that review and critique video games and shape public opinion. Examples: IGN, GameSpot, Kotaku, and individual gaming YouTubers and Twitch streamers.
8. Modders and user-generated content creators: Enthusiasts who create modifications and additional content for games. Examples include the modding community for games such as Cyberpunk 2077 and Minecraft.
9. Streaming and content creation platforms: Platforms such as Twitch and YouTube where gamers and content creators share gameplay experiences. Examples: Twitch (owned by Amazon), YouTube Gaming and Facebook Gaming.
10. Gamers: The end users who play and engage with video games, providing valuable feedback and often forming communities around the games they love. Gamers are a diverse group and include casual gamers, competitive gamers and professional e-sports athletes.

Perhaps you could elaborate a little more on some groups or separate them. Frankly, I think the visibility that comes from knowing the actors in the way they are presented is their sequentiality and the breadth of the business around video games.

In that sense, there is an additional group of actors that I have not described and that has special relevance: Esports entities. These are groups that organise and promote competitive gaming events and leagues. Examples: ESL (Electronic Sports League), Riot Games (organizers of League of Legends esports), and Overwatch League.

Production chain and dependencies

The video game industry is a dynamic supply chain, with each player playing a critical role in shaping the final gaming experience:

Creators:

It starts with the ingenious studios and game developers who conceive and create the games we love. They rely on the innovative Game Engine Developers who provide the powerful software engines needed for game physics and graphics. These games in turn find their way to hardware manufacturers who create the platforms that run them.

Marketers:

Publishers step in to finance and market these games, ensuring they reach a global audience. Distributors and retailers then facilitate the physical sale of games and gaming hardware, while digital platforms provide a convenient gateway to access games online.

Consumers:

Game reviewers and critics influence the community’s choice of games by providing insightful reviews. Gamers are at the heart of this chain, as their passion and feedback drive the industry forward. Modders and user-generated content creators extend the life of games, and streaming and content creation platforms amplify gaming culture worldwide. Esports organisations bring competitive gaming to a global stage.

Each actor in this chain contributes a vital link, and their collective efforts shape the vibrant and ever-evolving world of video games.

The business models

As we conclude our exploration of the video game industry, it’s important to recognise the diverse business models that underpin this thriving ecosystem. Within this multifaceted space, you’ll find various monetisation strategies, from the traditional one-off purchase model exemplified by many console and PC games, to free-to-play titles funded by in-game purchases. Subscription services such as Xbox Game Pass and PlayStation Now have gained prominence, offering gamers access to a library of games for a recurring fee. Crowdfunding platforms have enabled indie developers to bring their unique visions to life. In addition, competitive gaming and e-sports have opened up new revenue opportunities through sponsorship, advertising and live events.

Here are some of the most common models:

• One-time purchase: Players buy the game once and have access to the full experience, common in console and PC gaming.
• DLC (downloadable content): Players can purchase additional content, expansions or cosmetics to enhance their in-game experience.
• Season Passes: Offer a bundle of downloadable content for a game, often at a discounted price compared to purchasing each piece individually.
• In-App Advertising: Common in mobile gaming, revenue is generated through advertisements displayed during gameplay.
• In-Game Currency: Players can purchase virtual currency with real money to use for various in-game transactions.
• Pay-to-play models: Some games require an initial purchase followed by subscription fees for continued access.
• Free-to-Play (F2P): Games are free to download and play, with revenue generated through in-game purchases or micro-transactions.
• Subscription services: Services such as Xbox Game Pass, PlayStation Now and others offer access to a library of games for a monthly fee.
• Crowdfunding: Independent developers raise funds from the gaming community to support the development of their games through platforms such as Kickstarter and Indiegogo.
• Competitive gaming and esports: Revenue is generated through sponsorship, advertising and live events, often with a focus on competitive gaming leagues and tournaments.

The choice of business model is as varied as the games themselves, catering to the diverse preferences of gamers and ensuring continued growth and innovation in the industry.

Happy Gaming! Do you think I’ve missed any actors? Do you perceive the industry differently? Feel free to leave a comment

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