New study evaluates games outsourcing market at $1Bn in 2006

2006/06/29

New study evaluates games outsourcing market at $1Bn in 2006

According to a new study by Screendigest, “a quiet revolution is transforming the

games industry as developers turn to outsourcing to control spiraling next generation

costs. Outsourcing in Next Generation Games Development reveals a sea change in

games development that is resulting in significant expenditure being shifted to

outsourced services providers, many located in Eastern Europe and South Asia”

 

 

  • The global market for games outsourcing will reach $1.1bn by the end of 2006 and is set to grow to $2.5bn by 2010 – representing 40% of total games development spend
  • Outsourcing is already common – it is estimated that 60% of games studios outsource today, with this figure projected to rise to 90% by 2008
  • Demand for quality art and animation will soon outstrip supply by experienced outsourcing providers

Art outsourcing is already experiencing the fastest growth out of all outsourcing disciplines

as the next generation comes online. Within two years of the launch of the next generation,

Screendigest expects many of the world’s leading publishers will outsource almost all

environmental artwork and nearly three-quarters of character artwork to third parties.