Business Models

Description

A business model is defined as: A plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products and details of financing.

There are a lot of different businesses models within the video game industry, besides the classic model of selling video games in boxed product by retail, there are various ways now for video game companies to earn money. An example of this is in the digital world where games can be sold to the consumer online, which allows the company to make money in the process. Some video games can be brought online and delivered instantly over the internet by the process of digitally buying/downloading.

investopedia. (2016). Business Model. Available: http://www.investopedia.com/terms/b/businessmodel.asp. Last accessed 1st December 2016.

Developers

Developers are software developers and engineers who create video games. Game developers may be involved in various aspects of a game's creation from concept and story writing to the coding and programming. Other potential areas of work for a game developer include audio, design, production and visual arts. The developers are responsible to code the software while the other types of designers are left to finish the main product Game developers design and create video games for computers and video game consoles. They are involved in the conception as well as the execution of the game creation. Developers are only the first step in a business models and they are required to meet deadlines.

study.com. (2013-2016). Game Developer: Job Description, Duties and Requirements. Available: http://study.com/articles/Game_Developer_Job_Description_Duties_and_Requirements.html. Last accessed 1st December 2016.

Publisher

A video game publisher is a company that publishes that they have either developed internally or have had developed by a video game developer. Video game publishers are responsible for their products manufacturing and marketing, including market research and all aspects of advertising. They often finance the development, sometimes by paying a video game developer, publishers call this external development. The large video game publishers also distribute the games they publish. Other functions by the publisher may include deciding on and paying for any licences used by the game, also paying for, layout, localisation, printing, and sometimes the user manual.

Inside jobs. (2015). Game Publisher. Available: http://www.insidejobs.com/careers/game-publisher. Last accessed 1st December 2016.

Distributor

The distributors are in charge of giving games to different retailers or giving the games out digitally. When doing it digitally it can be done from an outside source or it can be Pre-ordered. Pre- ordered basically means that once it is available to purchases before it’s even came out. Distributors are allowed to start moving the product once it is green lighted by the publisher and they have the money. the distributors earns some cash once the product has started selling they get this through the earnings of the game and depending how well the game sells the more money the distributor gets.

Margaret Rouse. (March 2013). distributor. Available: http://whatis.techtarget.com/definition/distributor. Last accessed 1st December 2016.

Retailer

Retail businesses sell finished goods to consumers in exchange for money. As of April 2010, total monthly retail sales were nearly $367 billion in the United States, according to the U.S. Census Bureau at census.gov. Retail goods can be sold through stores, kiosks, or even by mail or the Internet. in the gaming industry this is where most of the money comes from because without the retails we would never get any games sold. Games at this stage are finally made accessible to the general public.

Matthew Hudson. (November 30th 2016). What is a Retailer. Available: https://www.thebalance.com/what-is-a-retailer-2890386. Last accessed 1st December 2016.

Consumer

The consumer is the one who pays for goods and services produced. As such, consumers play a vital role in the economic system of a nation. Without consumer demand, producers would lack one of the key motivations to produce: to sell to consumers. The consumer also forms part of the chain of distribution. Recently in marketing instead of marketers generating broad demographic profiles marketers have started to engage in personalized marketing, permission marketing, and mass customization.

Largely due the rise of the Internet, consumers are shifting more and more towards becoming consumers that are also producers or influence the products created or actively participate in the production process or use interactive products. this is the last stage of the business models and once the consumer gets there product the money they pay gets sifted through all the other stages, retailer, distributor, publisher until it finally reaches the developers where they get most of the money, they always have to pay the other stages as it cost a lot of money to produce and ship out loads of games.

investorwords. (2016). consumer. Available: http://www.investorwords.com/1055/consumer.html. Last accessed 9th November 2016.

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Harry pinches
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