Friday, 28 March 2025

MEDIA OWNERSHIP - VIDEO GAMES: PART TWO

Media Ownership in the Video Game Industry

Media ownership in the video game industry refers to the influence that different players—individual producers, large corporations, governments, and even consumers—have over the production, distribution, and consumption of video games. Each of these entities has a unique impact on the gaming landscape, shaping not only the games themselves but also how they are experienced and marketed. In this exploration, we'll focus on different categories of ownership and their impact on games like Animal Crossing: New Horizons (ACNH), providing examples where relevant.


1. Individual Producers

Definition: Individual producers in the gaming industry are typically smaller-scale developers or creative teams who are responsible for the creation of a game. These individuals may have significant influence over the game’s design, direction, and core mechanics.

Examples:

  • Nintendo: Nintendo, the developer of Animal Crossing: New Horizons, exemplifies individual ownership of a game. The company controls the game from its early stages, including concept development, design, and marketing. Shigeru Miyamoto and his team at Nintendo have a direct hand in shaping the overall feel and aesthetic of the game, ensuring it reflects Nintendo's core values. In the case of ACNH, the game is developed and designed in-house with close oversight from the company’s creative leadership.

  • Indie Developers: On a smaller scale, individual game producers in the indie sector also exert considerable influence over their games. For example, the creators of Stardew Valley, Eric Barone (ConcernedApe), developed and published the game almost entirely on their own. The level of creative freedom and ownership that individual producers have allows for a unique and personal touch in game design, often leading to more experimental and niche titles.

Impact on Audiences: The impact on audiences from individual producers is profound, as the games often reflect the creative vision and values of the developers themselves. In the case of ACNH, the game’s charming, community-focused gameplay is a direct result of the creative direction at Nintendo, which prioritizes accessibility and positive player experiences. For indie games, the personal touch often leads to more unique, heartfelt experiences that resonate deeply with fans, making players feel personally connected to the game and its creators.


2. Conglomerates and Corporations

Definition: Larger corporations and conglomerates in the gaming industry control significant portions of the market, often owning multiple game studios, publishing rights, and distribution platforms. Their influence extends across various facets of the gaming ecosystem, from hardware and software development to marketing and consumer engagement.

Examples:

  • Microsoft and Xbox: Microsoft is an example of a corporate giant with extensive media ownership. Through its Xbox division, Microsoft owns major game studios (such as 343 Industries and Bethesda) and has developed the Xbox console as a key platform for gaming. The company also controls the Xbox Game Pass subscription service, allowing players access to a vast library of games across different devices, with cross-platform progression available.

  • Sony and PlayStation: Sony, through its PlayStation brand, is another example of a corporation with significant media ownership in the gaming space. Sony owns and operates several successful game studios (like Naughty Dog, the creators of The Last of Us series) and controls the distribution of these games exclusively through the PlayStation Store. Additionally, Sony’s PlayStation Plus subscription service ties consumers into its ecosystem, offering multiplayer access and free monthly games.

  • Nintendo: While not typically considered a conglomerate in the same sense as Microsoft or Sony, Nintendo holds considerable power within the industry by controlling both hardware and software development. The company’s success with the Nintendo Switch, as well as its major franchises like Super Mario, The Legend of Zelda, and Animal Crossing, shows how Nintendo functions as a quasi-conglomerate, blending console production, game development, and distribution.

Impact on Audiences: For players, the presence of large corporations in the industry often results in more polished, expansive, and technologically advanced games. However, it can also lead to the prioritization of profitability over creativity, with some franchises becoming more formulaic or commercially driven. On the other hand, the consolidation of power into these large corporations can limit the diversity of available games, especially as smaller studios are absorbed or marginalized. This concentration of media ownership creates a more homogenous gaming experience for consumers, often favoring well-established franchises that can generate the highest returns.


3. Governments and Regulators

Definition: Governments and regulatory bodies play a crucial role in shaping the gaming industry through legislation, classification systems, and enforcement of laws related to issues such as content regulation, intellectual property, data protection, and labor rights. Their involvement in the gaming landscape impacts both game development and the consumption of games by players.

Examples:

  • Rating Systems: Government-imposed rating systems, like the ESRB (Entertainment Software Rating Board) in the United States and PEGI (Pan European Game Information) in Europe, regulate what content is accessible to different age groups. These systems influence the development of games by providing developers with guidelines on how to design their content in a way that adheres to regulatory standards. For example, Animal Crossing: New Horizons received an “E for Everyone” rating, which means the game was designed to be family-friendly and accessible to all age groups, a decision likely influenced by these rating guidelines.

  • China’s Regulatory Landscape: In China, the government has a significant influence on what games can be released in the country. Strict content regulations, including limits on online gaming hours for minors, have caused many companies to tailor their games for compliance. For example, certain games may be altered to avoid references to gambling, violence, or other prohibited content, affecting how games are designed and marketed for that market.

  • Intellectual Property Laws: Governments also regulate the ownership of intellectual property (IP), which impacts game publishers’ ability to protect their franchises. For example, ACNH's exclusive use of Nintendo’s iconic characters and trademarks ensures that unauthorized products or spin-offs are kept off the market, maintaining the value of the brand.

Impact on Audiences: The influence of governments and regulators on the gaming industry means that the content and accessibility of games are often shaped by legal frameworks, potentially limiting the types of experiences available to players. For example, content restrictions may prevent games from being released in certain countries, or gameplay mechanics may be adjusted to meet regulatory requirements. While these regulations are often aimed at protecting consumers, they can also result in censorship or a reduction in creative freedom. However, in markets like China, games that comply with these regulations may gain access to large consumer bases, benefiting both developers and players in terms of game availability.


4. Prosumers

Definition: Prosumers are consumers who actively participate in the creation, development, or promotion of gaming content. This can include modders, streamers, content creators, and community managers who contribute to the game’s lifecycle in various ways, sometimes blurring the line between producers and consumers.

Examples:

  • Modding Communities: In games like Skyrim and Minecraft, prosumers contribute through modding—creating custom content, additional features, or entirely new gameplay mechanics. While Animal Crossing: New Horizons does not officially support modding, there is still a passionate community around the game, with players sharing custom designs, islands, and creative ideas. The game’s "custom designs" feature, which allows players to share and download user-created patterns, has fostered a vibrant community of content creators.

  • Streaming and Content Creation: Platforms like Twitch and YouTube have turned many players into content creators who influence how games are perceived and experienced. Streamers, through their playthroughs, discussions, and interactions with audiences, can amplify the popularity of games like Animal Crossing: New Horizons. For example, the game’s relaxing, social nature has made it popular among streamers who attract large audiences, influencing new players to try the game.

Impact on Audiences: Prosumers play a significant role in shaping the gaming experience for audiences. The sharing of user-generated content, game modifications, and live-streamed playthroughs enhances the community aspect of games, encouraging players to engage in a deeper, more creative way. In the case of ACNH, the exchange of island designs, DIY recipes, and seasonal events enhances the game’s replayability and fosters a sense of shared experience. Prosumers not only enrich the game’s ecosystem but also shape its social and cultural relevance, making it more than just a game and turning it into a community-driven experience.


Conclusion

Media ownership in the video game industry involves various entities, each impacting the production, distribution, and consumption of games. Individual producers like Nintendo have the power to shape game experiences, while large corporations and conglomerates influence market trends and technological innovation. Governments regulate content and market access, and prosumers actively contribute to the game’s cultural relevance and community engagement. For audiences, this results in a dynamic and ever-evolving gaming landscape, where creative freedom, accessibility, and community-driven content can either enrich or limit the gaming experience. As the industry grows, the interplay between these players will continue to shape the games we play and how we interact with them.

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