We often use game development companies and game development studios interchangeably without knowing their differences. However, both terms are distinct and refer to different entities in the game development landscape. It’s important to know the difference between them, as the functionalities of both institutions differ and their projects have also different milestones, with a few similarities as well.
Before we delve deep into the intricate concepts, let’s understand the definition of both terms. Their strength, the type of projects they are involved in, and some examples.
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A game development company is a large organization often consisting of multiple game studios and teams operating on multiple projects simultaneously. It’s highly likely that the company is indulged in multiple AAA game development or different projects related to gaming like designing 3D characters or providing updates for already existing titles.
A game development company is not limited to the development aspect of the game but also handles production, funding, marketing, and resource allocation. The company is not limited to single projects like hyper-casual Web3 games, or cross-platform game development, but has its branches in multiple domains.
Game development studios are smaller in size, with limited strength, focusing on certain parts of the game development process. For example, a game studio might just be involved in Unity game development, and might not be well-versed with Unreal engine game development.
The game development studios do not overwhelm themselves with a lot of work and focus on smaller projects. These projects may include some parts of the game development process like 3D character design, asset design, or writing codes for gameplays. The studios are more indulged in the creative aspects of the game, or sometimes the technical aspect as well.
The range of operations involved in game development companies covers a wide domain from game publishing to investor relations and funding. Apart from handling multiple projects simultaneously, game development companies take care of:
Big giants of game development companies cover all the aspects of game development and publish it. Moreover, the marketing and branding of the game are also taken care of by these giants. These companies are also connected with different companies and studios and they often collaborate to create content, or they outsource some of their development phases from other studios. Game development companies often indulge in massive projects that require millions of dollars in planning and developing. Hence, they also have relations with investors and acquire funding.
Game development studios are not well-equipped to publish AAA games all by themselves, hence, they are more into HTML5 game development or designing some parts of AAA games. Game development companies often hire game studios to outsource their work on big projects. Different game studios boast different skills, some have a knack for art and animation, while some can handle the development part of the game seamlessly. Game companies hire game studios based on their expertise.
Game development companies majorly earn revenues from publishing and distributing titles. They own the rights to the game, it’s their intellectual property, and are the licensed owner of the titles. These companies also earn from investing in projects undertaken by smaller studios.
Game development studios mainly depend on big companies or investors for funds. They often earn from building certain aspects of games or rolling out updates for games.
Game development companies have a large base of employees ranging from marketing heads to HR, and they also have legal departments and business analysts. The teams at game development studios work in a hierarchy, and there’s often less or no communication between departments. Each department functions as a separate identity. The strength of the company helps in providing end-to-end game development solutions to its clients.
On the contrary, game development studios have close-knit teams, mostly devoid of hierarchy. These teams handle small projects, hence, they comprise mostly developers, design artists, and testers. Game development studios are mostly involved in the development cycle of the game and have less exposure in the marketing and production of the games.
Let’s understand the difference between the two entities in a brief form with the help of a table for a better understanding.
| Aspect | Game Development Company | Game Development Studio |
| Scale of Operations | Larger scale, often catering to multiple projects or clients simultaneously. | Smaller scale, typically focused on one or a few projects at a time. |
| Team Size | Large team with specialized roles, including developers, designers, marketers, and project managers. | Smaller team, often with multitasking individuals covering multiple roles. |
| Focus | Broader focus, including game design, development, publishing, and post-launch support. | Narrower focus, primarily on game design and development. |
| Client Base | Works with various clients globally, including businesses and publishers. | Often works on specific projects, sometimes contracted by larger companies. |
| Funding & Resources | More access to funding, resources, and technology due to their established presence. | Limited resources and funding, relying on smaller budgets or external support. |
| Project Ownership | Often owns and licenses multiple IPs (Intellectual Properties). | May create IPs but could also work as a subcontractor for other companies. |
| Examples | Ubisoft, EA, BR Softech (larger companies with diverse offerings). | Indie studios like Supergiant Games or Playdead. |
| Revenue Generation | Generates revenue through client services, game sales, in-app purchases, and partnerships. | Primarily earns through game sales or specific development contracts. |
| Responsibilities | Offers end-to-end solutions, including marketing, distribution, and customer support. | Focuses on game development and may depend on external publishers for marketing and distribution. |
While game development companies are like the lead actors of the gaming world handling the majority of the prominent work, game development studios are more like the supporting stars, assisting game development companies in whatever way they can. Big giants work on a larger scale focusing more on the business side of the landscape, small studios are more creatively driven in their work, and handle the technical aspects of gaming. Although they both are very distinct, they both require each other’s support to function smoothly. Game companies mostly hire multiple studios to speed up the development process and add more creative depth to the gameplay mechanics.
Ans. A game development company works on multiple projects simultaneously, overseeing marketing, publishing, and funding of the project. They might also own several game studios. On the other hand, a game development studio works on the micro level, for example, creating and developing specific games or franchises. Game studios mostly handle the creative and technical aspects of game production.
Ans. Yes, in most cases, game studios operate independently and are not part of a larger group. Examples include Supergiant Games (Hades) and Motion Twin (Dead Cells). Although things are tough and the budget remains tight, independent studios are responsible for almost everything, and provide end-to-end development services, unless they collaborate with a publisher.
Ans. Independent studios usually have the most creative freedom as they are not bound by a hierarchy and have full control over their projects. However, once tied up with a company, studios have to work under the vision of the company and prioritize their instructions, potentially limiting their creative autonomy.
