The Industry & The Players

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CS 470 | Game Development

Week 1 • Lecture 1

Market Snapshot

Gaming is Bigger Than...

Gaming vs Entertainment Industries

Global Gaming Revenue

Global Gaming Revenue Growth

How Did We Get Here?

1970s Arcades begin
1985 NES launches
2004 Steam launches
2008 App Store opens
2017 Fortnite takes over
2024 $200B+ industry

Platform Revenue Split

Platform Revenue Split

Mobile Dominates

Mobile Gaming Games shown: Candy Crush, PUBG Mobile, Genshin Impact

Console Gaming

Console Gaming Consoles shown: PlayStation 5, Xbox Series X, Nintendo Switch

PC Gaming

PC Gaming Features: Steam, esports, modding, highest fidelity

F2P vs Premium

F2P vs Premium Revenue

F2P Giants

Top F2P Games Revenue

Regional Markets

Regional Gaming Revenue

MENA & Pakistan

+25% MENA growth rate
60M+ Pakistani gamers

Fastest growing region globally

World-class talent from Pakistan

Arslan Ash

Arslan Ash

Tekken World Champion

EVO 2019 & 2023 Champion
First Pakistani to win a major FGC title

Sumail Hassan

Sumail Hassan

Dota 2 Legend

TI5 Champion at age 16
Youngest esports millionaire

Market Snapshot Recap

  • $200B+ global industry
  • Mobile = 50% of revenue
  • F2P dominates earnings
  • Asia leads, MENA growing fast

Who Makes Games?

The Spectrum

AAA
AA
Indie
$100M+
500+ people
$10-50M
50-200 people
$0-1M
1-20 people

AAA: The Big Budgets

AAA Games Games shown: GTA V, Red Dead Redemption 2, Forza 5

Budget Comparison

Game Development Budgets

Indie: Small Teams, Big Dreams

Indie Games Games shown: Hollow Knight, Stardew Valley, Celeste

Team Sizes Across the Industry

Team Sizes Comparison

AA: The Middle Ground

AA Games Games shown: Helldivers 2, Hi-Fi Rush, A Plague Tale

$10-50M budgets ยท 50-200 people

Publisher vs Developer

Publisher

  • Funds the game
  • Marketing
  • Distribution

Developer

  • Makes the game
  • Design & code
  • Art & audio

Major Publishers

[Sony]
[Microsoft]
[Nintendo]
[EA]
[Activision]
[Ubisoft]
[Take-Two]
[Tencent]

The Team

Design

Mechanics, levels, balance

Art

Concept, 2D, 3D, VFX

Programming

Gameplay, engine, tools

Audio

Music, SFX, voice

QA

Testing, bug reports

Production

Schedules, coordination

Game Designer

Game Designer

Mechanics ยท Systems ยท Balance ยท Player Experience

Artists

Art Pipeline

Concept ยท 2D ยท 3D ยท Technical Art ยท VFX ยท UI

Programmers

Programmers

Gameplay ยท Engine ยท Tools ยท AI ยท Networking ยท Graphics

Audio

Audio Design

Music ยท SFX ยท Voice Acting ยท Implementation

Solo Dev Heroes

Toby Fox

Undertale

Music + Design + Code

Eric Barone

Stardew Valley

Everything. 4 years.

Lucas Pope

Papers, Please

Unique vision

You can do this too.

How Games Reach You

The Old Days

Retro Game Store

Digital Revolution

2004 Steam launches
2008 App Store opens
2017 Game Pass launches
2024 90%+ digital on PC

Steam: The PC Giant

30M+ concurrent users
50K+ games
75% PC market share

Console Storefronts

[PlayStation Store]
[Xbox Store]
[Nintendo eShop]

Walled gardens ยท 30% platform cut ยท Approval required

Mobile Stores

[App Store]
[Google Play]

Billions of downloads ยท 30% cut ยท Discoverability is key

Alternatives

Epic Games Store

12% cut

Free games strategy

itch.io

You choose cut

Indie-friendly

GOG

DRM-free

Own your games

The Subscription Era

Gaming Subscription Services

Physical vs Digital

Digital vs Physical Sales Trend

Distribution Recap

  • Steam dominates PC (75%)
  • Consoles = closed ecosystems
  • Mobile = massive but crowded
  • Subscriptions reshaping the market

Discussion

Let's Talk

  • What games do you play?
  • What platforms do you use?
  • What drew you to this course?
  • What kind of games do you want to make?

Next Time

Genres, Design & What Makes Games Fun

Game Genres

See You Next Class!

Questions? Come chat after class.