Editing Video game development (section)

== History ==
[[File:VideoGamesSystemHistoryMural.jpg|thumb|650x650px|Video games system history timeline]]
The history of game making begins with the development of the [[first video game]]s, although which video game is the first depends on the definition of ''video game''. The first games created had little entertainment value, and their development focus was separate from user experience—in fact, these games required mainframe computers to play them.{{sfn|Moore|Novak|2010|p=7}} ''[[OXO (video game)|OXO]]'', written by [[Alexander S. Douglas]] in 1952, was the first computer game to use a digital display.{{sfn|Moore|Novak|2010|p=5}}  In 1958, a game called ''[[Tennis for Two]]'', which displayed its output on an oscilloscope, was made by [[Willy Higinbotham]], a physicist working at the [[Brookhaven National Laboratory]].{{sfn|Moore|Novak|2010|p=6}}<ref name="1983magazine">{{cite web| author=John Anderson| title=Who Really Invented The Video Game?| url=http://www.atarimagazines.com/cva/v1n1/inventedgames.php| work=Atari Magazines| access-date=November 27, 2006}}</ref>  In 1961, a mainframe computer game called ''[[Spacewar!]]'' was developed by a group of [[Massachusetts Institute of Technology]] students led by [[Steve Russell (computer scientist)|Steve Russell]].{{sfn|Moore|Novak|2010|p=6}}

True commercial design and development of games began in the 1970s, when [[arcade game|arcade video games]] and [[First generation of video game consoles|first-generation consoles]] were marketed. In 1971, ''[[Computer Space]]'' was the first commercially sold, coin-operated video game. It used a black-and-white [[television]] for its display, and the computer system was made of [[7400 series|74 series]] [[Transistor-transistor logic|TTL]] [[integrated circuit|chips]].<ref>{{cite web |url=http://marvin3m.com/arcade/cspace.htm |archive-url=https://web.archive.org/web/20081228061939/http://www.marvin3m.com/arcade/cspace.htm |archive-date=2008-12-28 |author=Marvin Yagoda |title=1972 Nutting Associates Computer Space |year=2008}}</ref> In 1972, the first home console system was released called [[Magnavox Odyssey]], developed by [[Ralph H. Baer]].<ref>{{cite web|url=http://www.americanheritage.com/articles/magazine/it/2009/3/2009_3_26.shtml |title=The Father of Video Games |first=Mark |last=Wolverton |access-date=March 31, 2010 |work=[[American Heritage (magazine)|American Heritage]] |url-status=dead |archive-url=https://web.archive.org/web/20100216031218/http://www.americanheritage.com/articles/magazine/it/2009/3/2009_3_26.shtml |archive-date=February 16, 2010 }}</ref> That same year, [[Atari, Inc.|Atari]] released ''[[Pong]]'', an arcade game that increased video game popularity.<ref name="PBS-GameRev-Time">{{cite web| title = History of Gaming - Interactive Timeline of Game History| url = https://www.pbs.org/kcts/videogamerevolution/history/timeline_flash.html| publisher = [[Public Broadcasting Service|PBS]]| access-date = 2007-10-25}}</ref> The commercial success of ''Pong'' led other companies to develop ''Pong'' clones, spawning the [[video game industry]].<ref name="InformIT">{{cite web| author = Miller, Michael| url = http://www.informit.com/articles/article.aspx?p=378141| archive-url = https://web.archive.org/web/20071012152258/http://www.informit.com/articles/article.aspx?p=378141| archive-date = 2007-10-12| title = A History of Home Video Game Consoles| publisher = [[InformIT (publisher)|InformIT]]| date = 2005-04-01| access-date = 2007-10-25}}</ref>

Programmers worked within the big companies to produce games for these devices. The industry did not see huge innovation in game design and a large number of consoles had very similar games.{{sfn|Moore|Novak|2010|p=9}} Many of these early games were often ''Pong'' clones.<ref name="Whittaker-122"/> Some games were different, however, such as ''[[Gun Fight]]'', which was significant for several reasons:<ref name="allgame">{{cite web|url=https://www.allgame.com/game.php?id=10214|title=Gun Fight|archive-url=https://web.archive.org/web/20140101010101/https://www.allgame.com/game.php?id=10214|archive-date=2014-01-01|url-status=dead|website=[[All Media Network#AllGame|AllGame]]}}</ref> an early 1975 [[Run and gun (video game)|on-foot]], [[multi-directional shooter]],<ref name="kotaku_gun">{{cite web|author=Stephen Totilo|title=In Search Of The First Video Game Gun|publisher=[[Kotaku]]|date=August 31, 2010|url=http://kotaku.com/5626466/in-search-of-the-first-video-game-gun|access-date=2011-03-27}}</ref> which depicted [[Player character|game characters]],<ref name="kohler19">{{citation|author=Chris Kohler|year=2005|title=Power-Up: How Japanese Video Games Gave the World an Extra Life|page=19|publisher=[[BradyGames]]|isbn=0-7440-0424-1|url=https://books.google.com/books?id=auMTAQAAIAAJ|access-date=2011-03-27|author-link=Chris Kohler}}</ref> [[video game violence|game violence]], and human-to-human [[Action game|combat]].<ref name="Steinberg">{{citation|title=Boy Culture: An Encyclopedia|volume=1|author=Shirley R. Steinberg|editor1=Shirley R. Steinberg |editor2=Michael Kehler |editor3=Lindsay Cornish |publisher=[[ABC-CLIO]]|year=2010|isbn=978-0-313-35080-1|url=https://books.google.com/books?id=XRGEIqzv5rsC|access-date=2011-04-02|page=451}}</ref> [[Tomohiro Nishikado]]'s original version was based on [[discrete logic]],<ref name="kohler18">{{citation|author=Chris Kohler|year=2005|title=Power-Up: How Japanese Video Games Gave the World an Extra Life|page=18|publisher=[[BradyGames]]|isbn=0-7440-0424-1|url=https://books.google.com/books?id=auMTAQAAIAAJ|access-date=2011-03-27|author-link=Chris Kohler}}</ref> which [[Dave Nutting]] adapted using the [[Intel 8080]], making it the first video game to use a [[microprocessor]].<ref name="Kent">[[Steve L. Kent]] (2001), ''[[The ultimate history of video games: from Pong to Pokémon and beyond : the story behind the craze that touched our lives and changed the world]]'', p. 64, Prima, {{ISBN|0-7615-3643-4}}</ref> Console manufacturers soon started to produce consoles that were able to play independently developed games,{{sfn|Moore|Novak|2010|p=13}} and ran on microprocessors, marking the beginning of [[Second generation of video game consoles|second-generation consoles]], beginning with the release of the [[Fairchild Channel F]] in 1976.{{Cn|date=January 2021}}

The flood of ''Pong'' clones led to the [[video game crash of 1977]], which eventually came to an end with the mainstream success of [[Taito]]'s 1978 arcade [[shooter game]] ''[[Space Invaders]]'',<ref name="Whittaker-122">{{citation|title=The cyberspace handbook|author=Jason Whittaker|publisher=[[Routledge]]|year=2004|isbn=0-415-16835-X|page=122}}</ref> marking the beginning of the [[golden age of arcade video games]] and inspiring dozens of manufacturers to enter the market.<ref name="Whittaker-122"/><ref name="Kent-500">{{cite book| last = Kent| first = Steven L.| author-link = Steven L. Kent| title = The Ultimate History of Video Games: From Pong to Pokémon| publisher = [[Three Rivers Press]]| year = 2001| isbn = 0-7615-3643-4| page=500}}</ref> Its creator Nishikado not only designed and programmed the game, but also did the artwork, engineered the [[Video game arcade cabinet|arcade hardware]], and put together a [[microcomputer]] from scratch.<ref name="1UP-10things">{{cite web| url = http://www.1up.com/do/feature?cId=3168373| title = Ten Things Everyone Should Know About Space Invaders| website = [[1UP.com]]| author = Edwards, Benj| access-date = 2008-07-11| archive-date = 2009-02-26| archive-url = https://web.archive.org/web/20090226064943/http://www.1up.com/do/feature?cId=3168373| url-status = dead}}</ref> It was soon [[Porting|ported]] to the [[Atari 2600]], becoming the first "[[killer app]]" and quadrupling the console's sales.<ref name="RG-41">{{Cite journal|date=September 2007| title= The Definitive Space Invaders| journal= [[Retro Gamer]]| publisher= [[Imagine Publishing]]|issue= 41| pages= 24–33 | url= http://www.nowgamer.com/features/894697/the_definitive_space_invaders_part_1.html | access-date=2011-04-20}}</ref> At the same time, [[home computer]]s appeared on the market, allowing individual programmers and hobbyists to develop games. This allowed hardware manufacturer and software manufacturers to act separately. A very large number of games could be produced by an individual, as games were easy to make because graphical and memory limitation did not allow for much content. Larger companies developed, who focused selected teams to work on a title.{{sfn|Moore|Novak|2010|p=12}} The developers of many early home video games, such as ''[[Zork]]'', ''[[Baseball (computer game)|Baseball]]'', ''[[Air Warrior (video game)|Air Warrior]]'', and ''[[Colossal Cave Adventure|Adventure]]'', later transitioned their work as products of the early video game industry.{{Citation needed|date=March 2010}}

The industry expanded significantly at the time, with the arcade video game sector alone (representing the largest share of the gaming industry) generating higher revenues than both [[pop music]] and [[Cinema of the United States|Hollywood films]] combined.<ref name="Rogers-Larsen-263">{{citation|title=Silicon Valley fever: growth of high-technology culture|author1=Everett M. Rogers  |author2=Judith K. Larsen |name-list-style=amp |publisher=[[Basic Books]]|year=1984|isbn=0-465-07821-4|url=https://books.google.com/books?id=frYrAAAAYAAJ|access-date=2011-04-23|page=263|quote=Video game machines have an average weekly take of $109 per machine. The video arcade industry took in $8 billion in quarters in 1982, surpassing pop music (at $4 billion in sales per year) and Hollywood films ($3 billion). Those 32 billion arcade games played translate to 143 games for every man, woman, and child in America. A recent Atari survey showed that 86 percent of the US population from 13 to 20 has played some kind of video game and an estimated 8 million US homes have video games hooked up to the television set. Sales of home video games were $3.8 billion in 1982, approximately half that of video game arcades.}}</ref> The home video game industry, however, suffered major losses following the [[video game crash of 1983]].<ref>{{citation|title=The cyberspace handbook|author=Jason Whittaker|publisher=[[Routledge]]|year=2004|isbn=0-415-16835-X|pages=122–3}}</ref> In 1984 [[Jon Freeman (game designer)|Jon Freeman]] warned in ''Computer Gaming World'':

{{quote|''Q: Are computer games the way to fame and fortune?''<br>
<br>
A: No. Not unless your idea of fame is having your name recognized by one or two astute individuals at [[Origins Game Fair|Origins]] ... I've been making a living (after a fashion) designing games for most of the last six years. I wouldn't recommend it for someone with a weak heart or a large appetite, though.<ref name="freeman198412">{{Cite magazine |last=Freeman |first=Jon |date=December 1984 |title=Should You Turn Pro? |url=https://archive.org/details/Computer_Gaming_World_Issue_4.6/page/n15/mode/2up?view=theater |magazine=Computer Gaming World |pages=16 |access-date=2023-01-06}}</ref>}}

[[Chris Crawford (game designer)|Chris Crawford]] and [[Don Daglow]] in 1987 similarly advised prospective designers to write games as a hobby first, and to not quit their existing jobs early.<ref name="cgw198702">{{Cite magazine |date=Jan–Feb 1987 |title=Designer Profile: Chris Crawford (Part 2) |url=https://archive.org/details/Computer_Gaming_World_Issue_34/page/n55/mode/2up?view=theater |magazine=Computer Gaming World |pages=56–59 |access-date=2023-01-06}}</ref>{{r|daglow198709}} The home video game industry was revitalized soon after by the widespread success of the [[Nintendo Entertainment System]].<ref>{{cite journal |author=Consalvo, Mia |year=2006 |title=Console video games and global corporations: Creating a hybrid culture |journal=New Media & Society |volume=8 |issue=1 |pages=117–137 |doi=10.1177/1461444806059921 |s2cid=32331292 }}</ref>

''[[Compute!'s Gazette]]'' in 1986 stated that although individuals developed most early video games, "It's impossible for one person to have the multiple talents necessary to create a good game".<ref name="Yakal198606">{{Cite magazine |last=Yakal |first=Kathy |date=June 1986 |title=The Evolution of Commodore Graphics |url=https://archive.org/details/1986-06-computegazette/page/n35 |magazine=Compute!'s Gazette |pages=34–42 |access-date=2019-06-18}}</ref> By 1987 a video game required 12 months to develop and another six to plan marketing. Projects remained usually solo efforts, with single developers delivering finished games to their publishers.<ref name="daglow198709">{{Cite magazine |last=Daglow |first=Don L. |date=Aug–Sep 1987 |title="I Think We've Got a Hit..." / The Twisted Path to Success in Entertainment Software |url=https://archive.org/details/Computer_Gaming_World_Issue_39/page/n7/mode/2up?view=theater |magazine=Computer Gaming World |pages=8 |access-date=2023-01-06}}</ref> With the ever-increasing processing and graphical capabilities of arcade, console, and computer products, along with an increase in user expectations, game design moved beyond the scope of a single developer to produce a marketable game.<ref>{{cite magazine|title=So What Do they Teach you at Videogame School?|magazine=[[Next Generation (magazine)|Next Generation]]|issue=25 |publisher=[[Imagine Media]]|date=January 1997|page=10|quote=... the 1980s era when one person could make a hit game by himself is long gone. These days games cost in the millions of dollars to produce - and no investor is going to give this money to one guy working from his bedroom. In 1996, a game will probably employ 10 to 15 people, working for one or two years.}}</ref> The ''Gazette'' stated, "The process of writing a game involves coming up with an original, entertaining concept, having the skill to bring it to fruition through good, efficient programming, and also being a fairly respectable artist".{{r|Yakal198606}} This sparked the beginning of team-based development.{{Citation needed|date=April 2010}} In broad terms, during the 1980s, pre-production involved sketches and test routines of the only developer.<!--26--> In the 1990s, pre-production consisted mostly of game art previews.<!--26--> In the early 2000s, pre-production usually produced a [[First playable demo|playable demo]].{{sfn|Bethke|2003|p=26}}

In 2000 a 12 to 36 month development project was funded by a publisher for [[United States dollar|US$]]1M–3M.{{sfn|Bethke|2003|p=15}} Additionally, $250k–1.5M were spent on marketing and sales development.{{sfn|Bethke|2003|pp=15–16}}<!-- Sales development is term for money needed to put game on shelf; may include this if another source mentions this --> In 2001, over 3000 games were released for PC; and from about 100 games turning profit only about 50 made significant profit.{{sfn|Bethke|2003|p=15}} In the early 2000s it became increasingly common to use [[Game Middleware|middleware game engines]], such as [[Quake engine|''Quake'' engine]] or [[Unreal Engine]].{{sfn|Bethke|2003|p=30}}

In the early 2000s, also [[mobile games]] started to gain popularity. However, mobile games distributed by mobile operators remained a marginal form of gaming until the Apple [[App Store (iOS)|App Store]] was launched in 2008.<ref name=MGA_SoA />

In 2005, a mainstream console video game cost from [[United States dollar|US$]]3M to $6M to develop. Some games cost as much as $20M to develop.<ref>{{cite news | url=http://news.bbc.co.uk/2/hi/technology/4442346.stm | title=Cost of making games set to soar | work=[[BBC News]] | date=November 17, 2005 | access-date=April 9, 2010}}</ref> In 2006 the profit from a console game sold at retail was divided among parties of distribution chain as follows: developer (13%), publisher (32%), retail (32%), manufacturer (5%), console royalty (18%).{{sfn|McGuire|Jenkins|2009|p=26}} In 2008 a developer would retain around 17% of retail price and around 85% if sold online.<ref name="Forbes"/>

Since the [[Third generation of video game consoles|third generation of consoles]], the home video game industry has constantly increased and expanded. The industry revenue has increased at least five-fold since the 1990s. In 2007, the software portion of video game revenue was $9.5&nbsp;billion, exceeding that of the movie industry.{{sfn|Moore|Novak|2010|p=15}}

The Apple App Store, introduced in 2008, was the first mobile application store operated directly by the [[mobile operating system|mobile]]-[[platform holder]]. It significantly changed the [[consumer behaviour]] more favourable for downloading mobile content and quickly broadened the markets of mobile games.<ref name=MGA_SoA />

In 2009 games' market annual value was estimated between $7–30&nbsp;billion, depending on which sales figures are included.<!--24--> This is on par with films' box office market.{{sfn|McGuire|Jenkins|2009|p=24}} A publisher would typically fund an independent developer for $500k–$5M for a development of a title.{{sfn|McGuire|Jenkins|2009|p=25}} In 2012, the total value had already reached $66.3&nbsp;billion and by then the video game markets were no longer dominated by console games. According to Newzoo, the share of MMO's was 19.8%, PC/MAC's 9.8%, tablets' 3.2%, smartphones 10.6%, handhelds' 9.8%, consoles' only 36.7% and online casual games 10.2%. The fastest growing market segments being mobile games with an average annual rate of 19% for smartphones and 48% for tablets.<ref>{{cite web|title=Global Games Market Grows to $86.1bn in 2016|url=http://www.newzoo.com/press-releases/global-games-market-grows-to-86-1bn-in-2016/|publisher=Newzoo|access-date=6 November 2013}}</ref>

In the past several years, many developers opened and many closed down.<!--16--> Each year a number of developers are acquired by larger companies or merge with existing companies.<!--16--> For example, in 2007 [[Blizzard Entertainment]]'s parent company, [[Vivendi Games]] merged with [[Activision]].<!--16--> In 2008 [[Electronic Arts]] nearly acquired [[Take-Two Interactive]]. In 2009 [[Midway Games]] was acquired by [[Time-Warner]] and [[Eidos Interactive]] merged with [[Square Enix]].{{sfn|Moore|Novak|2010|p=16}}