Since the industrial revolution, the only thing that is stable in this world is change itself. Technological advancement, scientific innovation, and globalization process have almost modified all business sectors. One of these branches is the gaming industry, which continuously expands year by year. Notably, the release of various devices such as computers, consoles, and smartphones has encouraged the process. Growing popularity and customers of the gaming industry cause the emergence of numerous video game companies. It is not a surprise that the profitability of the sector is one of the influential factors in this continuum. According to the statistics of the entertainment sector, the main rival of Netflix has been Fortnite online video games this year. It's a fact that Netflix has always contested with HBO, which is one of the well-known media-services providers and producers. However, the gaming industry has prevailed HBO and strain Netflix severely in the sector.
As mentioned above, the video game companies are expanding in which the predecessors of the entertainment sector are coming to a standstill. For instance, the profit of the US game industry thrilled in the stock market last year. According to the Entertainment Software Association, it could achieve 43.4 billion dollars in revenue in 2018. The National Purchase Diary Group stated that it had been 19% more than the outcomes of the prior year. When we cross-check this result with the film industry, we can notice that it will experience a recession for a long time.
On the other hand, the destiny of the music industry does not give hope to the owners. However, the gaming industry looks hopeful and encouraging with the estimation of 300 billion dollars profit globally. The role of innovative business strategies, cutting-edge technology, and the emergence of video game design companies is undeniable in this process.
What Are Video Game Companies?
A game company is a structure that delivers video games to the sector. It can both design video games and associated with video game design companies. Just as book broadcasters or film producers, video game company also takes liability for their products. All stages of the generation process from market research to PR campaigns are under their control and management. Meanwhile, some companies outsource the development team or video game design company for the projects. You can see the external development term in the explanation part of the online games. It means that a game company has worked with a foreign team for launching the game. However, most video game companies prefer to establish their design team instead of outsourcing. If you have ever visited any online casino, you notice the phrase game development studios. This expression stands for game companies that both produce and launch video games.
As you have already assumed, outsourcing options highly depend on the experience and size of the company. Large-size companies with remarkable experience can perform all stages successfully on the domestic level. However, a newly established or small-scaled company will not have these opportunities. Therefore, they will prefer to find a partner for the given projects. At the same time, video game companies are accountable for the license and legalization sides of online video games. In other words, the game company should get a license for video games, especially casino games, if it is necessary. Otherwise, there can be illegal and risky entertainment and business environment. Besides, the issues after the launching stage are also the responsibility of the video game company. For instance, they should provide 7/24 technical assistance for the online slots in case of an inefficient situation. It will satisfy customers and raise the reputation of entrepreneurship.
The Best Video Game Companies
Tencent Video Game Company
One of the biggest video game companies is Tencent, which is also one of the legends of the gaming industry. Therefore, it is not a surprise that this company holds the top place in several lists. The total revenue of the company is about 15,092 million dollars in a year. This amount is almost a half percent higher than the profit of Sony. Thus, as the most significant game development studio, it is reigning in the gaming market of China. According to the latest statistics, more than 250 million players enjoy Tencent's online games. At the same time, Tencent implements various restrictions in the gaming market of China for other famous video games. This list includes online video games such as Fortnite, PUBG, etc. Hence, it maintains and ensures the sustainability and future of the company in this way. Under these circumstances, users choose to play Tencent video games compulsorily.
Sony Video Game Company
Another biggest video game company in the industry is Sony. Most of the people know this company as a mobile phone manufacturer. It is a fact that as international cooperation, this company can achieve a high level of success in multiple sectors. Even, it has been the favorite brand of the Millennials in the early 2000s. It is one of the first companies which enable game fans to play video games at home.
In today's world, the total annual revenue of Sony is 9,859 million dollars. Even a legend such as Microsoft is behind it in the entertainment sector. Keep in mind that it is just profit by the online game platform of Sony. When we consider newly launching PlayStation, this number does not cause any surprise. Additionally, Sony, as a video game company, gets revenue from the various accomplished online games. It mainly includes bestsellers such as God of War and Detroit, Spider-Man, etc.
Apple
One of the most famous and most prominent video game companies is Apple. Just like other technology companies like Microsoft or Google, this company also yields high revenue in each year. One of the resources of this revenue is the mobile game development sector. As you have already known, it is launching video games through the AppStore. According to the latest statistics, the income of the company is almost 6,918 million dollars from the game sector. It is a massive amount for a company which is operating on mainly mobile platform. It means that the AppStore knock Play Store into a cocked hat with a net difference.
Stallion Gaming
Stallion Gaming is one of the video game companies which operates multiple game development services. As one of the best video game design companies, we are aware that online games require more than just technical knowledge. Game development is a complex and sophisticated collaboration of various lines. It includes design, computer science, project management, programming, marketing, and much more for surviving in the gaming market. Stallion Gaming development team provides the clients with these services based proficient experience. We, as a team, launch nearly all types of video games such as online video slots, casino games, etc. At the same time, we offer several game solutions in the market, like mobile game development, casino game development, and much more. Thus, you can convert gaming dreams into reality by the assistance of Stallion Gaming. We are ready to delight the customers with high-quality services reckless of the device or operating system.
How to Start Video Game Companies
Step I: Planning
It is a fact that any business or entrepreneurship has to start with a reliable and reasonable business plan. It plays a constructive role in any successful project or organization. The prosperous business plan mainly consists of the foundation of the company, investigation in the market, production, or execution of the project. At the same time, you can include marketing of the product, maintaining sustainability, and becoming successful. Although it seems easy, establishing a business plan is a challenging and time-consuming task. Surely, if you want your company to become accomplished. Therefore, it is advisable to develop your project with the assistance of experienced people. Now, you can get help from some experts who perform this function professionally. Even, large-scale video game companies have a particular type of team which consists of advisors. This team will help you in not only today's business plan but also upcoming projects and partnerships.
Understandably, you do not want to spend money on it, or you do not have enough financial resources. However, we advise you to hire at least a lawyer and a tax consultant. When we talk about financial resources, we would like to emphasize multiple issues. It is not a surprise that any entrepreneurship has to save money for developing projects and launching them. In this case, a video game design companies are not an exception. Financial resources have always been trouble for new businesses and owners. Even, numerous organizations cannot survive because of a lack of money. However, there is a wide variety of methods which will assist new business owners to fund their video game companies. The most popular ways are mainly bootstrapping, partnership, and finding investors. Keep in mind that his task should also be a part of your business plan for the game development company.
Step II: Forming
The main aim of video game companies is to produce video games and thrill the gaming world. However, there are a wide variety of video games in the sector. It includes online slots, strategy games, casino games, turn-based games, etc. Moreover, various versions of video games exist in today's world. It is advisable to offer at least both mobile and computer versions of the games. This vast range of options makes the selection and decision process difficult. Keep in mind that all types of video games have both advantages and disadvantages. In other words, there is no perfect game development branch that will run smoothly.
Additionally, each type of video game companies could have different requirements, such as license, certification, extra investment, or partnership. Also, when you have become the only possessor of the company, it will be straightforward. In other words, the whole responsibility will belong to you.
However, in the case of two or more owners, the process will get more tricky. You will need to discuss all the details related to ownership with a professional attorney. Also, you need to conclude the allocation of responsibilities among all business holders. If there is a group of founders, you will have a high chance of experiencing a "dead" equity term. This phrase refers to the situation in which one of the owners has gone from the organization, but s/he still has a share in the company. It is one of the common issues that startup projects usually encounter. You can apply membership terms and conditions for avoiding this situation. As a result, shareholders who do not actively participate in the business process can lose their power over the company. They will not have membership status and a right to participate in the decision-making process.
Step III: Development Team
After establishing your game company, the next significant step is to form a team. You can have ambitious goals, enough financial resources, and a successful plan. But you cannot be prosperous without a decent team in the market. Therefore, establishing a game development team can require more time and effort. Firstly, you need to decide on the size of the development team. Also, business holders need to define the budget for their future colleagues. Keep in mind that a more professional team could demand a higher amount of investment in any sector, including the gaming industry. Therefore, you need to research both the average salary rates and experts of the market. The best conclusion on this topic is starting with a small-scale team, which consists of moderately experienced members. They will satisfy the company and customers for a long time. You will have a chance to enlarge or change your team.
On the other hand, you do not need to hire all of the members of the game team. It does not mean that some of the professions are more important, while others are not necessary. Each province in the gaming sector carries essential significance and require higher professionalism. However, there are a lot of experts who are performing as a freelancer in this industry. It is a fact that video game programmers are a little bit, unattached individuals. That is why they do not prefer to work within one organization. Instead of sticking in one place, they opt to work at home with various video game companies. It makes the situation favorable for both the company and the workers. Nevertheless, we would like to remind you that it will be hard to follow the track when you work with freelancers. It is almost impossible to manage them outside of the workplace.
Step IV: Legitimacy
As mentioned above, it is possible to eliminate a franchise right of other shareholders, to change the members of the team, or to outsource game developers. However, owners of video game companies need to establish legal rules and obligations for executing them. In other words, only statutory regulations can provide you with authority. Therefore, before building a game development company, you need to define all legal issues. Keep in mind that you cannot decide on these codes without a professional attorney. Thus, this lawyer will provide you with the required assistance and knowledge. Under these circumstances, business holders will not experience any trouble related to law and court. Additionally, employees will be more productive when they work under stable and legal conditions. It will affect the reputation of the video game company in a positive way, which means new additional projects and customers in the long run.
Legal issues also include the privacy of the customers who use your video games. It is a fact that you will need to require multiple personal information from your clients on the online platform. It can be name and mailing address or bank account or card information. Regardless of the privacy level, all of the information received about the users are under the responsibility of the video games companies. Firstly, you need to set up a privacy policy which will instruct gamers about the terms and conditions. It should include all details such as where you will keep it or how you will use it. Secondly, you need to develop a tool to preserve this information. In the age of technological advancement, it is not to breach any system and get all data from companies. Therefore, you have to ensure customers about the security and privacy of the system.