Institutions

1. Institutions
Lesson 8

2. Video games are culturally and
financially significant to:
• Japan
• Europe and
• USA
RELEASES ARE MAJOR EVENTS – NEW CONSOLE
AND GAME RELEASES FROM POPULAR
FRANCHISES

3. GLOBAL FIGURES
• UK Share $4 billion
• China US $ 24.4 billion (fastest growing)
• American $23.6 billion

4. 2017 - revenue
1st Japan (highest in the world)
2nd US
3rd China
4th Germany
5th UK

5. Institutions
• Institution is all to do with the business and industry
behind the products.
• Institutions are the companies who design, create,
produce and market games.
• It includes big companies who produce a lot of games
and other products, medium-sized independent
companies who just produce one or a few games, and
even small companies run by one or two people.

6. Big or small?
• Big companies have a lot of money to put into developing and
promoting games. Their new games become big events with lots of
publicity.
• Some big companies also develop the consoles, so they can release
games for new hardware before other companies can.
• But their games are also often expensive, so people expect a lot
from them. The big companies can become 'risk-averse' - when it
costs so much to make a game, they don't want to risk doing
anything too new or unusual.

7. Big or small?
Small companies can focus on niche markets and unusual products.
They only need to appeal to a small target audience.
Small companies don’t need to make as much money; they don’t
need to worry about appealing to everyone; they can be freer and
more independent.
Small companies can stay in touch with their players; they can react to
changes and new ideas more quickly, update their product more
quickly and stay ahead of the big companies.
Small companies can feel special for the audience because not
everyone knows about them; they often have a small group of really
committed fans.

8. Blockbuster Games
• Big companies often produce AAA or Triple A games,
with high production values which are expected to sell
well and make a lot of money.
• They cost a lot to make, and are also expensive to buy.
• The release of Triple A games like the latest Call of Duty
or Halo title generates as much publicity and more
money than the release of a Hollywood blockbuster
film.

9. Indie
'Indie' can mean small producers who don't have the backing
of a big company. It often means a spirit or attitude as
well:
Indie producers tend to be non-traditional, unconventional,
sometimes with strong political or social agendas, or
motivated by their own artistic and creative vision:
Indie producers who have become successful include
Mojang with the hugely influential indie game 'Minecraft.'
10 minute film about Mojang.

10. Case Study 1: Nintendo
• One of the biggest games companies in the world.
• First games released in 1973.
• Also produce the consoles, from the first handheld
devices in the 1980s to the Nintendo DS and the Wii.
• Turnover averages $8 billion a year.
• Their games include:
Super Mario The Legend of Zelda Wii Fit

11. Case Study 2: Introversion
• Small UK indie company
• Started by 3 students in London in 2001
• Games mix genres, blending strategy, puzzle and god-game genres.
• The company almost went bankrupt in 2006, but is now making money from
the alpha version of ‘Prison Architect:’
• Games include:
Uplink Darwinia DEFCON Multiwinia

12. 3. Blizzard Entertainment
• A pioneer of MMORPGs.
• Established 1991; now one of the biggest games companies in
the world.
• Games include:
Diablo World of Warcraft (WoW) StarCraft
• WoW: players around the world interact in a rich fantasy
world; a space for socialising as much as gaming.
• Each WoW expansion pack became the fastest selling PC-game
of its time.

13. Corporate power
• Horizontal and vertical integration (promotion
of Microsoft products)
• New devices support new versions of software
– encouraging purchase of new devices
•  $$$$

14. Microsoft smart phones
Xbox consoles
Digital versions of same game for different device
Windows 10 O/S
Download through Microsoft Cloud server
Microsoft Realms
PROMOTING MICROSOFT BRANDS
RESUMÉ

15. Microsoft smart phones
Xbox consoles
Digital versions of same game for different device
Windows 10 O/S
Download through Microsoft Cloud server
Microsoft Realms
PROMOTING MICROSOFT BRANDS
RESUMÉ

16. Microsoft smart phones
Xbox consoles
Digital versions of same game for different device
Windows 10 O/S
Download through Microsoft Cloud server
Microsoft Realms
PROMOTING MICROSOFT BRANDS
RESUMÉ

17. Curran & Seaton theory
James Curran and the power of the internet

18. Multimedia conglomerates
• What other companies/products does
Microsoft own?
• Nintendo?
• SONY?
• Read BBC article: Comcasts bid for Sky TV

19. Who is telling us the truth The real fake news
Click on link to read and watch

20. Videogame websites?
Research the top 10 UK and US videogame
website/blogs/YouTube
channels/magazines.
• Twitch TV
• IGN
• Games Radar
• Etc???

21. https://www.gamesradar.com/edge/

22. Who is UKIE and what is their role?
Additional useful reading:
http://ukie.org.uk/sites/default/files/UK%20Games%20Industry%20Fact%20S
heet%20February%202018.pdf

23. Opinion leaders - two-step flow
READER READERS READERS READERS
Games Companies
X-Box
magazine Games
Master
magazine
Game
Spot.com
IGN.com
RESUMÉ