Economic Impact Analysis of Game Art Outsourcing Industry: Market Trends and Business Models
DOI: https://doi.org/10.62517/jbm.202509521
Author(s)
Qifang Zhang*
Affiliation(s)
School of Animation and Digital Arts, Communication University of China, Beijing, China
*Corresponding Author
Abstract
As a major part of the global game industry, the game art outsourcing industry has changed production money, achieved studio scales, and formed new international centers. This paper looks at the economic results of game art outsourcing through the analysis of trends, creating business models and looking at how it affects each person along the way. It is also interesting to see if outsourced work effects the cost of making, how long it takes to make something new, how good or bad the art is, and to other people are getting better because of this. By looking at the case studies of big publishers, independent studios and specialist art outsourcers in and around North America, Europe and Asia alongside the Economic data analysis between 2019 - 2024, we will describe the move away from the contractor to a world-wide production world. What we can see from this is that when you want to produce a game, the process has become so complex that it is getting harder and harder to find people with experience at the old game centers and the talent isn’t there anymore which means the game art outsource market will be $4.2billon used by 2024 and that it will increase year by year by 12 - 15%. We will discuss four main types of business models: project based contracts, additional capacity partnership, co-development and studio integration each will have very different economic trade-offs for cost efficiency, quality control, Ip and flexibility. Analyze from economics perspective on the impact of outsourcing on studios’ profit, employees work distribution and employment, regions’ development, industry structure, and provides guidance on whether to outsource for specific projects, the company’s capabilities, market position etc.
Keywords
Game Art Outsourcing; Economic Impact Analysis; Business Models; Market Trends; Global Production Networks
References
[1] Au W J. Game design secrets. John Wiley & Sons, 2012. 168.
[2] Delgado A, Estepa A, Troyano J A, Estepa R. Reusing UI elements with model-based user interface development. International Journal of Human-Computer Studies, 2016. 86: 48-62.
[3] Zhang L, Fung A Y. Working as playing? Consumer labor, guild and the secondary industry of online gaming in China. New Media & Society, 2014. 16(1): 38-54.
[4] Chalaby J K. Outsourcing in the UK television industry: A global value chain analysis. Communication Theory, 2019. 29(2): 169-190.
[5] Slater D, Gasser U, Smith M, Bambauer D E, Palfrey J G. Content and control: Assessing the impact of policy choices on potential online business models in the music and film industries. Available at SSRN 654602, 2005.
[6] Srai J S, Kumar M, Graham G, Phillips W, Tooze J, Ford S, Tiwari A. Distributed manufacturing: scope, challenges and opportunities. International Journal of Production Research, 2016. 54(23): 6917-6935.
[7] Svystelnyk S О. Market of digital services in Ukraine: current trends of development. Master's thesis, Sumy State University, 2024.
[8] Ernst D. Global production networks and the changing geography of innovation systems. Implications for developing countries. Economics of innovation and new technology, 2002. 11(6): 497-523.
[9] Nhung T. Exploring the interplay between business economics and global trade. Journal of Asian Multicultural Research for Economy and Management Study, 2024. 5(3): 1-11.
[10] Kiggundu M N, Pal S P. Structure and management of formal and informal business activities in entrepreneurial family and small firms in Africa. Africa Journal of Management, 2018. 4(3): 347-388.