Game development is the process of combining storytelling, art, music, sound effects, animation, and programming techniques to create a dynamic, and interactive form of electronic entertainment. This stage provides the tools for packaging the creation for different platforms, e.g. for X-box or Playstation2.
A key element of this function is to develop a strong brand loyalty from game players, based on past quality and consistency. There are so many game titles in the world, to meet day to day changing consumer tastes. Developing a niche in this huge market is a both a challenging and lucrative opportunity for companies able to stand the competition. .
In particular, it is essential for small developers to build brands that appeal to specific consumers, so that they make a franchise of products and a loyal customer base that can provide a revenue stream for years to come (Game Developer's, 1998).
The central actors in this phase are game developers and publishers.
Distribution.
At this point, products are distributed to the end consumer, the game players. Once a developer or a publisher has a title ready for market, a combination of direct sales to consumers and to retailers will be used to launch the product, but they will also make use of distributors. .
A small variation in the value chain arises from the different methods of delivery to consumers. These include Standalone and Networked.
The Standalone includes titles developed to run on non-compatible platforms in consumers' home e.g. Sony, Sega, Nintendo, 3DO and multimedia PC's with a CD Rom. The delivery process in this value chain involves developers/publishers, distributors and retailers with similar attributes to the book industry. .
The Networked method is relatively new to the industry, but online game networks are gaining popularity fast. "Network" distribution is characterized by direct access to game contents via the Internet or private networks, so distributors and retailers in the online gaming industry lose a great deal of market share.
