Game studios 'cannot supply demand from publishers'

Latest UKTi research shows consolidation and market expansion have changed the market
Publish date:

We've published the latest in our exclusive extracts from the Playing for Keeps report Games Investor Consulting has put together for UKTi and Tiga - with the latest research, a look at the commercial models for the games industry, revealing that the industry is being restructured as new deals are being done.

Topline details include the conclusion that, as publishers look to expand their portfolio and anticipate the apex of the current platform cycle, developers ay not be able to meet demand, as consolidation, rising development costs and a growing, fractured marketplace has its effect.

Acquisitions have meant that the independent development sector is filled with less experienced console developers: "Studio acquisitions and the technological and financial barriers to entry towards working on current generation consoles are reducing the number of independents experienced with, and capable of, working on premium console IP."

The report also adds that 'one size fits all' development (such as last cycle's pattern of developing a game for PS2, Xbox, GC and PC which would in essence be the sam title) has become harder: "Platform differentiation and proliferation and audiences’ increasingly personalised content requirements make it harder for a single studio to successfully develop an identical game across multiple platforms", although this does provide and "increasing opportunities for independents to specialise".

Part one of the research can be found here. Part two will be published on Thursday, November 15th.



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