LogInOutsourcing only non-core production stages seems like a perfect solution – but does it match the reality?
According to the research, 80 Level reveals what aspects of game development should be kept in-house and which can be successfully outsourced. This article will elaborate on the most and the least outsourced game development areas of the list we provided in the previous article. You'll also learn about the key drivers behind outsourcing decisions.
According to the BLEND report, nearly half (46%) of the top 50 game development companies invested in localization in 2023 – among them PlayStation, Xbox, Roblox, and Nintendo, which have their websites translated into over 43 languages.
When localizing games, developers encounter several key challenges and important aspects. They need to be mindful of specific dialects, expressions, and formatting. Additionally, one must balance accuracy and fluency in the translation. It is also essential to stay current with trends and ensure these are reflected in the localization.
The market for QA outsourcing is also huge. In 2021, the worldwide market was valued at 772 million USD. Analysts predict it will reach 1.5 billion USD by 2031.
Game Design was identified as the stage of production least likely to be outsourced. Moreover, XDS revealed that Game Design, Narrative Writing, and Information Design were mostly done in-house in 2023 – more than half of game developers and publishers used internal resources for these areas. Rapid Prototyping, Dev Ops, Engine Development, and Gameplay Engineering are also the main spheres that remain in-house.
Outsourcing exclusively non-core game production stages only works in the ideal world. The actual market state data (where an unlimited budget is a myth) represents a different picture. XDS revealed that the need to meet content production demand continues to be the main reason behind turning to third-party agencies (74%) in the overall outsourcing drivers breakdown. This factor is followed by the lack of human resources (40%), studios' intentions to make more complex games (28%), or the desire to decrease development costs (27%).
Want more in-depth data on the cooperation between game companies and outsourcers? Read our comprehensive research Gamedev Report: Outsourcing vs. In-house to get key insights:
- Internal Weaknesses & Strengths of Game Development Companies
- Game Development Outsourcing Market Overview
- Game Studios’ Experience with Outsourcers
- Fantastic Outsourcers and Where to Find Them
- What Does the Future Hold?