Media ownership video gamesPresentation Transcript
Institutions and Audiences: Video Games
Licenses, brands, technology, software, hardware, the intellectual property (IP).
What effect does this have on the industry?
Rockstar own the GTA brand – their developers are part of the same company so they also own the game code as well. No one else can make ‘GTA’ branded games.
Rockstar have created the characters themselves.
Rockstar created their own game engine (RAGE) enabling them to make uniquely realist graphics. However they had to license other technologies such as Euphoria (a game animation engine) and Bullet ( open source physics engine )
Rockstar had to license all the songs in the game at the cost of approx $5000 per track. They had to license the TV footage such as Ricky Gervais’ comedy show.
Microsoft paid $50 million for the exclusive rights for the GTA 4 downloadable content (DLC) – so obtaining the right media ownership can be used to sell consoles.
Publishers have to pay for ‘licenses’ from other intellectual properties (exclusive rights) such as films (Bond, X-Men, Spider-Man), sports stars and events (FIFA, Tiger Woods), car designs (Gran Turismo), TV shows (X Factor), songs Guitar Hero.
These all cost money – more you spend on licensing that may attract sales, the less you have for development.
Developer allow consumers to access their technological IP - Valve who make Team Fortress and Half Life give fans access to their development tools so they can create their own maps and games.
Apple allow developer to get the Apps Software Development Kit (SDK) for free so they can make IPhone apps (but then take 30% of the revenue).