Video game development

Video game development is the process of creating a video game. Development is undertaken by a game developer, which may range from a single person to a large business. Mainstream games are normally funded by a publisher and take several years to develop. Indie games can take less time and can be produced cheaply by individuals and small developers. The indie game industry has seen a rise in recent years with the growth of new online distribution systems and the mobile game market.

The first video games were developed in the 1960s, but required mainframe computers and were not available to general public. Commercial game development began in 1970s with the advent of first generation video game consoles and home computers. Due to low costs and low capabilities of computers, a lone programmer could develop a full game. However, approaching the 21st century, ever-increasing computer processing power and heightened consumer expectations made it impossible for a single developer to produce a mainstream game. The average price of game production slowly rose from US$1M–4M in 2000 to over 5M in 2006 to over 20M in 2010.

Mainstream games are generally developed in phases. First, in pre-production, pitches, prototypes, and game design documents are written. If the idea is approved and the developer receives funding, a full-scale development begins. This usually involves a 20–100 person team of various responsibilities, such as designers, artists, programmers, testers, etc. The games go through development, alpha, and beta stages until finally being released. Modern games are advertised, marketed, and showcased at trade show demos. Even so, many games do not turn a profit.

Game development is the software development process by which a video game is produced. Games are developed as a creative outlet and to generate profit. Development is normally funded by a publisher. Well-made games bring profit more readily. However, it is important to estimate a game's financial requirements, such as development costs of individual features. Often game projects developed with "heart and soul" turn no profit. Failing to provide clear implications of game's expectations may result in exceeding allocated budget. In fact, the majority of commercial games do not produce profit. Developers such as BioWare, Blizzard Entertainment, and id Software are renowned for releasing quality games on completion, rather than being constrained by financial limitations. However, most developers cannot afford changing development schedule and require estimating their capabilities with available resources before production.

The game industry requires innovations, as publishers cannot profit from constant release of repetitive sequels and imitations. Every year new independent development companies open and some manage to develop hit titles. Similarly, many developers close down because they cannot find a publishing contract or their production is not profitable. It is difficult to start a new company due to high initial investment required. Nevertheless, growth of casual and mobile game market has allowed developers with smaller teams to enter the market. Once the companies become financially stable, they may expand to develop larger games. Most developers start small and gradually expand their business. A developer receiving profit from a successful title may store up a capital to expand and re-factor their company, as well as tolerate more failed deadlines.

An average development budget for a multiplatform game is US$18-28M, with high-profile games often exceeding more than $40M

Game development, production, or design is a process that starts from an idea or concept. Often the idea is based on a modification of an existing game concept. The game idea may fall within one or several genres. Designers often experiment with different combinations of genres. Game designer usually produces initial game proposal document, which contains the concept, gameplay, feature list, setting and story, target audience, requirements and schedule, staff and budget estimates. Different companies have different formal procedures and philosophies regarding game design and development. There is no standardized development method; however commonalities exist.

Game development is undertaken by a game developer—ranging from an individual to a large company. There can be independent or publisher-owned studios. Independent developers rely on financial support from game publishers. They usually have to develop a game from concept to prototype without external funding. The formal game proposal is then submitted to publishers, who may finance the game development from several months to years. The publisher would retain exclusive rights to distribute and market the game and would often own the intellectual property rights for the game franchise. Publisher's company may also own the developer's company, or it may have internal development studio(s). Generally the publisher is the one who owns the game's intellectual property rights.

Console manufacturers, such as Microsoft, Nintendo, or Sony, have a standard set of technical requirements that a game must conform to in order to be approved. Additionally, the game concept must be approved by the manufacturer, who may refuse to approve certain titles

Independent games or indie games are produced by individuals and small teams with no large-scale developer or publisher affiliations. Indie developers generally rely on Internet distribution schemes. Many hobbyist indie developers create mods of existing games. Indie developers are credited for creative game ideas (for example, Darwinia, Weird Worlds, World of Goo). Current economic viability of indie development is questionable, however in recent years internet delivery platforms, such as, Xbox Live Arcade and Steam have improved indie game success. In fact, some indie games have become very successful, such as Braid, World of Goo, and Minecraft.