Video game publisher Facts for Kids

A video game publisher is a company that helps bring video games to players. They are like the producers of a movie, but for games! Publishers take games that have been created by video game developers and make sure they get to stores or online platforms.

Publishers often provide the money needed to create a game. Sometimes they pay an outside team of developers, which they call external development. Other times, they have their own teams of developers, known as a studio. Big publishers also help deliver the games to players, a process called distribution. Smaller publishers might hire other companies to do this for them. Publishers also handle important tasks like getting any special licenses for the game, translating the game into different languages (this is called localization), designing the game box, and writing the instruction manual. Some very large publishers even own smaller publishing companies.

Big publishers also help development teams by offering services like sound design and useful code. Since publishers often pay for game development, they also help manage the project. They have producers or project managers who check on the developer's progress, give feedback, and offer help when needed. Most games made by outside developers are paid for in stages. These payments happen when the developer reaches certain goals, called milestones.

In recent years, it's become easier to get games online through platforms like Steam and console stores. This means new games can be released throughout the year, not just during holidays.

The video game world has become very focused on "hits." This means a few super popular games make most of the money.
Players often buy games that are advertised a lot, even if other games are just as good or better. This makes publishers spend more money on marketing to make their games stand out. It also means we see many sequels to popular games instead of brand-new ideas. Companies like Activision Blizzard and Electronic Arts have been talked about for this trend.
Newer game consoles have amazing graphics. To make games that look incredible, you need bigger teams. More characters need to be animated, and everything needs lots of detail. This means more complex art and programming. Games for these consoles can cost a lot of money to make, sometimes tens of millions of US dollars. For example, Spider-Man 3 cost a huge amount to develop, not even counting the marketing! Every game is a big risk, so there's a lot of pressure for it to be a success.

But not all games cost so much! There's also the casual game market, which has smaller, simpler games for computers and as downloads for consoles. Also, the Wii console, even though it came out around the same time as the PlayStation 3 and Xbox 360, often needed less money for development. This was because the Wii focused on new ways to play with the Wii Remote, not just super realistic graphics.
When publishers make games for game consoles, they face a special challenge. Since the NES in 1985, console makers have controlled how games are made for their systems. Publishers have to pay a special fee, called a royalty, for every game disc or cartridge they make. This fee is paid when the game is manufactured, not when it's sold. So, if a publisher makes a million copies of a game but only sells half, they still paid the royalty for all million copies. This is a big cost they have to cover.

Different Kinds of Game Publishers
Top Video Game Companies
See also

Different Kinds of Game Publishers

There are several types of video game publishers, each with their own focus.

AAA Publishers: Big Budget Games

AAA game publishers create games with huge budgets. These games often push the limits of technology and creativity in the gaming world. Think of them as the blockbuster movies of video games! AAA publishers usually make very popular and well-known games. They have the money to fund large game projects and spend a lot on marketing and distribution to make sure everyone knows about their games. This helps them reach a wide audience. While they have to follow market trends to succeed, they often deliver amazing gaming experiences. Famous AAA publishers include Electronic Arts, Ubisoft, and Activision.

Indie Publishers: Creative Freedom

Indie game publishers work with independent developers. Their main goal is to support games that are unique and creative. Developers working with indie publishers often have more control over their game's vision. These publishers work closely with developers. Indie games often stand out because they explore new and interesting game ideas. While indie publishers might have smaller marketing budgets and reach fewer people, they bring fresh and exciting games to the market. Examples of Indie game publishers are Devolver Digital, Annapurna Interactive, and Raw Fury.

Mobile Game Publishers: Games on the Go

Mobile game publishers focus on games for smartphones and tablets. They understand how popular mobile gaming is and create games that are perfect for touchscreens. These publishers are experts at finding ways for games to make money on mobile platforms, like through in-app purchases or free-to-play (F2P) models. They know a lot about the mobile gaming market and how to get players interested and keep them playing. Mobile games are easily found through app stores. However, making money can be tricky due to the many free games available. Some well-known Mobile game publishers are Supercell, King, and Zynga.

Understanding Publishing Agreements

If a game studio or developer works with a publisher, they will sign a publishing agreement. It's really important to carefully read and understand this agreement before signing. This document explains everything about how the publisher and developer will work together. Since the publisher's lawyers usually write it, the agreement is designed to protect the publisher's interests first.

Top Video Game Companies

Here is a list of the top 50 largest video game companies. You can see their rank, name, where their main office (headquarters) is, and how much money they earned (revenue).

Rank	Company	Headquarters	Revenue (USD$)
1	Sony Interactive Entertainment	San Mateo, California	$31.7 billion
2	Tencent Interactive Entertainment	Shenzhen, China	$27.1 billion
3	Microsoft Gaming	Redmond, Washington	$23.5 billion
4	NetEase Games	Hangzhou, China	$11.5 billion
5	Nintendo	Minami-ku, Kyoto, Japan	$11.2 billion
6	Electronic Arts	Redwood City, California	$7.3 billion
7	Valve Corporation	Kirkland, Washington	$6.5 billion (estimate)
8	Epic Games	Cary, North Carolina	$6.0 billion (estimate)
9	Take-Two Interactive	New York City, New York	$5.6 billion
10	Roblox Corporation	San Mateo, California	$4.9 billion
11	MiHoYo	Shanghai, China	$4.2 billion (estimate)
12	Bandai Namco Entertainment	Minato, Tokyo, Japan	$3.2 billion
13	Scopely	Culver City, California	$3.0 billion (estimate)
14	Nexon	Minato, Tokyo, Japan	$3.0 billion
15	Sega Sammy	Shinagawa, Tokyo, Japan	$3.0 billion
16	Century Games	Beijing, China	$2.73 billion (estimate)
17	Aristocrat Gaming	Sydney, Australia	$2.66 billion
18	Playtika	Herzliya, Israel	$2.55 billion
19	Embracer Group	Karlstad, Sweden	$2.35 billion
20	37Games	Shanghai, China	$2.32 billion
21	Krafton	Gangnam, South Korea	$2.3 billion
22	Square Enix	Shinjuku, Tokyo, Japan	$2.3 billion
23	Dream Games	Istanbul, Turkey	$2.25 billion (estimate)
24	Playrix	Dublin, Ireland	$2.13 billion (estimate)
25	Funfly	Singapore	$2.1 billion (estimate)
26	Ubisoft	Saint-Mandé, France	$2.07 billion
27	Tripledot Studios	London, England	$2.0 billion
28	Netmarble	Seoul, South Korea	$2.0 billion
29	NCSoft	Pangyo, South Korea	$2.0 billion
30	Konami Digital Entertainment	Chūō, Tokyo, Japan	$1.9 billion
31	Garena	Singapore	$1.9 billion
32	Moon Active	Tel Aviv, Israel	$1.75 billion (estimate)
33	Cygames	Shibuya, Tokyo, Japan	$1.37 billion
34	Capcom	Chūō-ku, Osaka, Japan	$1.15 billion
35	NetDragon Websoft	Fuzhou, China	$1.11 billion
36	Smilegate	Pangyo, South Korea	$1.02 billion
37	Wizards of the Coast	Renton, Washington	$1.0 billion
38	Niantic	San Francisco, California	$1.0 billion
39	Papergames	Suzhou, China	$850 million (estimate)
40	Perfect World	Beijing, China	$800 million
41	Keywords Studios	Leopardstown, Ireland	$780 million
42	Kakao Games	Jeju, South Korea	$725 million
43	Voodoo	Paris, France	$670 million
44	FunPlus	Zurich, Switzerland	$594 million (estimate)
45	Kingsoft	Beijing, China	$584 million
46	Koei Tecmo	Nishi-ku, Yokohama, Japan	$583 million
47	Mixi	Shibuya, Tokyo, Japan	$531 million
48	LilithGames	Hong Kong	$528 million
49	Wemade	Seongnam, South Korea	$496 million
50	Com2uS	Seoul, South Korea	$480 million