First-party developer

First-party developers

In the video game industry, a first-party developer is part of a company that manufactures a video game console and develops mainly for it. First-party developers may use the name of the company itself (such as Nintendo), have a specific division name (such as Sony'sPolyphony Digital) or have been an independent studio before being acquired by the console manufacturer (such as Rare or Naughty Dog). Whether by purchasing an independent studio or by founding a new team, the acquisition of a first-party developer involves a huge investment in development time and money on the part of the console manufacturer, which is wasted if the developer fails to produce a hit game on time. However, using first-party developers saves the cost of having to make royalty payments on a game's profits. Current examples of first-party studios include Nintendo EPD for Nintendo, PlayStation Studios for Sony, and Xbox Game Studios for Microsoft Gaming.