Try to follow along: In 2006, Epic Games – the North Carolina-based devs behind Gears of War – opened up its very own Shanghai-based studio to outsource its own Unreal Engine-related work to, as well as cater to external third-party licensees like Ubisoft Shanghai. Cost per man month in North America? $9000. Cost per man month in China? $4000, according to a Gamasutra report. So now we all know what Epic Games China is.
Which is why this morning's announcement that Epic Games China has formed Titan Studios – a "wholly owned subsidiary based in Seattle" developing Sony's colorful (albeit controversial) PSN title, Fat Princess – slightly puzzling. First, we've only known Fat Princess since Sony showed it off at E3 and, even then, the developers were known as "Titan Studios" and not their pre-Epic precursor "Darkstar Industries".
Second, why does the "content production outsourcing and game development services" component of Epic Games want to form its own development studio? (Or, in other words, why didn't Epic Games proper "form" Titan Studios in much the same way it acquired People Can Fly?) Epic's Jay Wilbur explains, "Not only are Titan developing award-winning, original IP of their own, they also have resources available to help other studios increase productivity and minimize risk." Their best business advice in these rocky economic times: Be owned by Epic Games.
Reader Comments (9)
Posted: Nov 11th 2008 4:05PM beeporama said
I was thinking similarly, possibly also related to isolating risk. Film producers do this all the time, forming a company that exists solely to produce a single film. That way if it bankrupts, assets outside that company are protected.
There is a certain irony, though. The weak dollar makes outsourcing from the U.S. to China a lot less attractive. Suddenly salaries in USD are a lot more affordable...
Reply
There is a certain irony, though. The weak dollar makes outsourcing from the U.S. to China a lot less attractive. Suddenly salaries in USD are a lot more affordable...
Posted: Nov 11th 2008 1:06PM WiredKnight said
WTF does Epic need to outsource?
Is it just stuff like localization and eastern development, or are Gears of War 3 assets being made in sweatshops?
Reply
Is it just stuff like localization and eastern development, or are Gears of War 3 assets being made in sweatshops?
Posted: Nov 11th 2008 2:07PM (Unverified) said
Outsourcing jobs sucks.
I know a couple people who would have loved a chance to work for Epic.
For shame, Epic.
Reply
I know a couple people who would have loved a chance to work for Epic.
For shame, Epic.
Posted: Nov 11th 2008 2:19PM chrisgrant said
They've been doing this for awhile. There are plenty of credits for Epic Games China at the end of Gears 2.
Reply
Posted: Nov 11th 2008 2:34PM (Unverified) said
For some people yes, but for the majority and the world as a whole, no.
I actually congrat and like the idea very much of what Epic did. It's smart.
Reply
I actually congrat and like the idea very much of what Epic did. It's smart.
Posted: Nov 13th 2008 2:19AM (Unverified) said
I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Sarah
http://www.thetreadmillguide.com
Reply
Sarah
http://www.thetreadmillguide.com
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