Digital entertainment

Operation profile

Video game production studios develop multi-platform video games for release on major gaming platforms, including Sony PlayStation®, Microsoft® Xbox®, PCs (Microsoft® Windows®), and mobile platforms (iOS® and Android®). Many video game production studios are subsidiaries of larger development or publishing houses engaged in developing multiple games for a global market.

The representative operation modeled is assumed to be a subsidiary of a large game developer or publishing house. The operation is assumed to be developing and releasing major versions of new games on a rolling three year cycle, staggering the release of major new titles on different gaming platforms at different points in time. As detailed in the following table, this operation is characterized by:

  • Leased office space
  • A technically oriented workforce that is heavily weighted toward junior programmers
  • A significant level of activities eligible for either R&D tax incentives or specific digital media production incentives.

The business is assumed to operate as a profit center.
 

Summary of operating parameters

Industry: Digital entertainment

Operation: Video game production

Facilities requirements
Class A office space leased - ft2 (1,881 m2)
20,250

Other initial investment requirements
   Office equipment - US $'000
$1,600
   Equity financing - % of project costs
67%

Workforce
   Management
4
   Sales and administration
7
   Dedicated product development
87
   Customer Support
2
 
Total employees
100

Energy requirements
   Electricity: monthly consumption demand - kWh
60,000

Other annual operating characteristics
   Sales at full production - US $'000
$20,500
   Operating costs - % of sales
12%
   Investment in tax-eligible R&D - % of sales
18%

International results

International results are illustrated in the following chart. These results reflect the combined impact of 26 location-sensitive cost components applied to the modeled operation. Detailed results for these countries, by individual cost component, are available as a separate table.

City results

The following table profiles results for selected cities, by country, from among the 111 cities featured in this report. Results for all other cities included in the study can be found in the Results lookup section of this website.

Results for selected cities
Industry: Digital entertainment
Operation: Video game production
North America – selected cluster cities
Country and CityIndex & Rank1
CACalgary, AB77.120
 Kelowna, BC73.715
 Montreal, QC70.38
 Toronto, ON68.57
 Vancouver, BC75.317
MXMexico City, DF65.02
 Monterrey, NL63.01
USAlbuquerque, NM85.036
 Atlanta, GA94.984
 Austin, TX93.375
 Baton Rouge, LA84.433
 Denver, CO91.156
 Honolulu, HI98.3100
 Los Angeles, CA101.5108
 Orlando, FL86.339
 Providence, RI94.982
 Raleigh, NC94.983
1  Rank among 111 featured cities.
 
 
 
International locations – all cities
Country and CityIndex & Rank1
AUAdelaide80.021
 Brisbane82.327
 Melbourne82.326
 Sydney83.831
FRMarseille82.428
 Paris86.037
GEBerlin88.042
 Frankfurt90.249
ITMilan82.529
 Rome80.723
JPOsaka86.038
 Tokyo88.743
NLAmsterdam80.824
 Rotterdam80.422
UKLondon89.144
 Manchester76.619
1  Rank among 111 featured cities.

 
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