Distributed Game Development Using Contractors

Gamers around the world have noticed a large trend in the video game industry in the last 15 years, massive growth with massive projects and unbelievable costs, goals and sales. We’ve seen the impossible become achievable in epic projects like World of Warcraft and huge sales figures from Halo 3 but we’ve also seen game titles fall down in a burning wreck.

Each studio tries to beat the next studio with crisp realistic graphics, real time physics engines, life-like explosions all with huge costs. Does it all sound familiar? If you’re a movie buff you’ve probably seen movie studios cranking out the same style of movie, high computer graphic effects with talented high priced actors making longer and longer films.

The only big difference? A game studio hires most of their talent for full time positions and then has to figure out what to do with them when the project ends. Perhaps this explains Microsoft’s effort to remove game studios like Ensemble, Bungie and FASA, it’s all too much to handle when a high budget project ships and time frees up in the studio.

Grand Theft Auto IV is said to have costs 100-million dollars to produce, how much of that was man power and specialized talent that now sits idle? Many studios end with layoffs as a congratulations for the hard work while bloggers and journalists write articles about the “downfall” and “destruction” of such a studio and share holders freaking because of drastic headcount reductions.

As projects continue to reach million dollar costs and specialized talent is brought in to handle computer graphics, movies, physics and lighting we’re looking more and more like we need to change how the game industry handles projects. Mark Pacini, Todd Keller and Jack Mathews, three core developers behind the Metroid franchise have struck out on their own all while thinking about the new formation of the game industry.

Mark Pacini told gamasutra, “the model in which games are made — with a staff of people upwards of 100 people a lot of the time — is kind of outdated now.” What’s the solution? Pacini said:

“Contractors now are being used more efficiently than they’ve ever been on game projects, and it’s become a more valid way to staff up your project. Rather than being looked down upon as a company that doesn’t want to hire somebody, it’s more fiscally responsible of the company to hire contractors, not to staff up and have a mass layoff at the end.” (kotaku)

Imagine a time where developers are contract-for-hire specialists in the industry, paid to do a project and move on to another project to handle the same style of work. The end result will be a lower-budget title with equal value to the game design because studios won’t have to pay benefits, handle layoffs, any potential walk-off “packages” and all the HR overhead that goes with hiring “part time” full time developers.

This diversity may spark new competition as small contract firms and individuals bid to get the deals they want and enjoy a good income for the work they do. Those that are aces in the field will stand out and be recognized for their accomplishments more than a simple entry in a scrolling game credit.

Unfortunately, this will mean that those awesome teams and studios that brought us hot titles will be a thing of the past. This will mean less iD Softwares, Epics and Square Enix’s as things becomes smaller groups of specialized workers. However, if it means the same quality titles with less risk to publishers and developers, we may get more hot titles than ever before without huge price hikes.

0 thoughts on “Distributed Game Development Using Contractors”

  1. Most mobile phone games are done via contractors who are hired by larger companies. Babaroga, for example, has made mobile version of a lot of Electronic Arts’ major titles (Spore, The Godfather , Kelly Slater’s Pro Surfer, SimCity, Splinter Cell: Pandora and Tony Hawk Pro Skater 4) as well as for Disney.

  2. Most mobile phone games are done via contractors who are hired by larger companies. Babaroga, for example, has made mobile version of a lot of Electronic Arts’ major titles (Spore, The Godfather , Kelly Slater’s Pro Surfer, SimCity, Splinter Cell: Pandora and Tony Hawk Pro Skater 4) as well as for Disney.

  3. Great article Derrick. I couldn’t agree with you more. The hiring tendency for game projects is exactly as you stated and can easily be avoided if studios kept a core staff and then just added supplemental Game Contractors as needed during the project. They will end up saving a great amount in tax filings, payroll tax and administration, bonuses, benefits, and much more. Not to mention that they will save their reputation from being included in the mix of studios that are bad-mouthed for their annual, predictable massive layoffs.

    Our company, Ascendi Entertainment, is one of the few companies that is currently helping game studios to alleviate this problem. We have a full contractor management solution that provides Game Contractors to some of the top game studios. If anyone reading this is interested in our service or interested in becoming a Contractor in the game industry…you should check us out at http://www.AscendiEntertainment.com.

  4. Great article Derrick. I couldn’t agree with you more. The hiring tendency for game projects is exactly as you stated and can easily be avoided if studios kept a core staff and then just added supplemental Game Contractors as needed during the project. They will end up saving a great amount in tax filings, payroll tax and administration, bonuses, benefits, and much more. Not to mention that they will save their reputation from being included in the mix of studios that are bad-mouthed for their annual, predictable massive layoffs.

    Our company, Ascendi Entertainment, is one of the few companies that is currently helping game studios to alleviate this problem. We have a full contractor management solution that provides Game Contractors to some of the top game studios. If anyone reading this is interested in our service or interested in becoming a Contractor in the game industry…you should check us out at http://www.AscendiEntertainment.com.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Community Expands: Team Fortress 2 Has a BlogCommunity Expands: Team Fortress 2 Has a Blog

The Internet has given us a communication mechanism which allows developers to better understand their audience. You can use community sites to market your content and your brand but you can also use them to better understand your market and bring your strageties and progress to your fans.

Valve Software has taken their latest successful franchise title Team Fortress 2 and followed it up with a website or “blog” which can keep their fans “in the loop.” Teamfortress.com will, no doubt, be the launch pad for much hype, community offerings and up-to-date news about the TF2 game and any updates.

“Now that we’ve settled into regular releases of content, we’ve found ourselves wanting a better way to talk directly to the TF2 community about the state of the game and some of the reasoning behind the choices we’re making. Our hope is that this blog will accomplish that, and give everyone some better insight into our development process as well.” (teamfortress.com)

Now, there is a great chance Valve will use their new launch pad to talk about upcoming games and lead you to demo’s and downloads to the TF2 title; they already link to the valve store to purchase the game. But, blogs bring in users searching for fresh content about the game and give official word to kill any bad rumors.

Call it marketing, call it journalism or developers notes, there is nothing wrong with having one more resource which represents the voice of Valves TF2 development team. Congradulations guys!

Electronic Arts Issues 1,000 Pink SlipsElectronic Arts Issues 1,000 Pink Slips

Electronic Arts is planning to lay off 1,000 employees, approximately 10% of their employees. In this layoff their also consolidating EA Black Box back into EA Canada. EA Black Box was spun off as a studio outside of EA Canada to work on such titles as Need for Speed but, with the layoffs arriving, they’re going to be merging the remainder of EA Black Box into EA Canada by June 2009. The remaining EA Black Box employees will continue working on Skate 2.

The pink slips should be issued by March 31, 2009 and we’re hoping the folks that have lost their jobs will find new jobs as soon as possible. An Electronic Arts representative said:

“This does not mean that the Black Box studio is closing. The studio is moving to our Burnaby campus to share the facility with EAC and other EA teams that operate out of our state-of-the-art facility. We will operate two distinct studios, each with their own distinct culture and teams, out of our Burnaby facility.” (gamespot)

EA hasn’t mentioned any specific franchise cancellation but we’re going to assume something is going to slip, it’s hard to imagine a company can lose 1,000 employees without impacting business operations. If EA was able to layoff 1,000 people without impacting day-to-day business, then they’re definitely hurting in the management department because that would be a ton of waste.

Big companies may cut costs during hard times but they said they’re, “implementing a plan to narrow its product portfolio to focus on hit games with higher margin opportunities. The company remains committed to taking creative risks, investing in new games, leading the industry in the growing mobile and online businesses, and delivering high-quality games to consumers.”

We’re curious just how much EA is willing to risk on “creative” endevours considering publishers are already hesitant to break new ground. The next few years should yield great opportunities for smaller developers to put on their creative hat and open new doors and opportunities for themselves.

PlayStation 3 Online Community Matches 360PlayStation 3 Online Community Matches 360

Although PlayStation 3 is still third in worldwide sales, behind the Xbox 360 by about 5-million units, the PS3 community services now have as many online gamers as Xbox 360 says Sony. Sony posted on their blog saying, “with 14 million active accounts and 273 million pieces of content downloaded, we know that you’re thirsting for this digital entertainment.”

Although US sales of the 360 are killing the PS3, the community membership does give gamers a reason to get online with the PS3. Nobody wants to buy into a console that has very few active online games or an easy way to find friends (*cough* Wii). Having 14-million users helps them bridge the sales gap by building gamer confidence. Social networking is the new term; gamers want to socialize with each other online and with their consoles.

Microsoft recently announced their 14-million subscriber base and continue to update folks when they hit big milestones. The main difference, LIVE is a subscription system — those 14-million gamers are also paying for the service (we’re not sure if silver memberships count in that figure) and this means income for Microsoft while Sony does their service for free.

Although Microsoft is making money on their service, no doubt Sony will bypass their total membership because it has no cost barriers to play. The biggest cost barrier to get on Sony’s network is the PS3 itself and many gamers hold out for price drops which aren’t coming anytime soon (so says Sony). However, building a larger community on a free network allows Sony to siphon gamers to buy downloadable content, games, music, movies and all the goodies that go with these services.

It seems a better idea to triple your audience with a free service knowing a large amount of “hardcore gamers” attach themselves to the easy to buy content on said service. So, is it better to make US $50.00 a year on half the population or give triple that population an opportunity to spend more money on content?

“Thanks to all of you, PS3’s momentum is stronger than ever. There are nearly 17 million PS3 systems around the world, and in the United States, PS3 hardware sales are up nearly 100 percent from where we were at this time last year. Software sales have tripled from a year ago. Yes, we’re proud about everything we’ve accomplished, and we’re even more psyched about where we’re going with our holiday software lineup” (playstation.com)

Eventually gamers may have access to Sony’s Home project, which could raise the community figures and give Xbox 360 something less to brag about. Although, we’re sure Sony would rather be boasting “number one” console again, at least they’ve finally got a win on their side because 14-million users is only the beginning for them.

Plus, it’s hard to argue free.