The Impact of Outsourcing on the Gaming Industry

Why are more and more game companies outsourcing some of their tasks, and what does that mean for an industry now worth $75 billion?

For most game companies, outsourcing is all about getting a better handle on managing work and cash flow effectively. And one way to achieve those goals is by having a “liquid workforce” (called as such since outsourced work can be turned on and off depending on the needs of the company).

It’s a sentiment shared by Rocket League creator, Psyonix. In an interview with the WSJ, the studio’s chief executive, Dave Hagewood said, “the smaller we can be, the better.” He estimated that about 40 or 50 of the 120 people working on their game are contractors. This means about one-third of the Rocket League development team are third-party workers. When you consider the company’s popularity and success (the game earned $110 million in revenue during its first year and now has more than  25 million players) that number takes on a significant meaning. It also shows how developers can achieve massive success even as they stay small, labor-wise.

The gaming industry is growing every day, with practically hundreds of games being produced for a wide range of platforms, both by big-time players and independent developers. Outsourcing certain tasks help these game producers meet their needs. Many of them even approach overseas studios late in the production schedule, when they need to get things done quickly and efficiently, and they are about to miss a deadline. Some of the tasks being outsourced to offshore studios include art asset creation, character modeling, and rendering.

Ultimately, outsourcing doesn’t just help game companies to reduce their labor and operating expenses. It also allows them to produce games in a fast and cost-effective manner without compromising quality. When you need help with your development project or if you wish to learn more about game development outsourcing, get in touch with us at NarraSoft.  Our team has experience building game assets, as well as mobile games for various devices including the iPhone, iPad, Samsung Galaxy, and a variety of other mobile products.