Study on the Relationship Between Creativity of Video Games
Development and Rigid Management Process
Zhiqian Zhang
a
School of Systems and Enterprises, Stevens Institute of Technology, 1 Castle Point Terrace, Hoboken, U.S.A.
Keywords: Video Game Development, Management Process, Organizational Structure, Creativity, Innovation.
Abstract: In recent years, the video game industry has faced unprecedented opportunities and challenges. Increasingly
fierce market competition has forced video game companies to develop games with better gameplay,
innovation along with higher overall quality. However, in the process of game development, the ability to
innovate is often greatly affected by the company's management structure and process. This paper analyses
the history of Ubisoft's development, management process and change in terms of innovation ability,
exploring how specific company management process has its impact on creativity and innovation. Three
specific perspectives: project development process, relationship between technology and innovation,
facilitating role of informal organizations, are used to demonstrate how management strategies influence team
creativity in both positive and negative ways. The study found that as the industry environment and consumer
perceptions change, the management structure and processes are supposed to evolve in response. If
adjustments are not made in a timely manner, problems in management processes are able to radiate to all
levels of the company. Once the balance between efficiency and creativity is lost, the process of restoring that
balance could be long and bumpy.
1 INTRODUCTION
It is a significant milestone for the rapidly evolving
video gaming industry during these two years, with
more opportunities and challenges appearing. The
global video games market was estimated to be worth
188.3 billion dollars in 2023 and is expected to reach
254.6 billion dollars by 2030. As game development
technology continues to advance and global
connectivity reaches unprecedented levels, the
industry is gradually being pushed to the forefront of
innovation and cultural influence. At the same time,
it is hard to ignore that gaming industry had
experienced a massive wave of layoffs since 2023.
Although the layoff wave is caused by a series of
factors of post-pandemic era, it reflects, to some
extent, that leading companies of the industry are
experiencing the pain of adjusting organizational
structure and management process as well. In
addition, since the game field becomes increasingly
saturated with different types of games, developers
have to be more committed to providing a unique,
creative and interesting game experience, which in
a
https://orcid.org/0009-0008-3130-6383
turn puts forward a higher demand for originality in
game development.
Video games are essentially a cultural product, a
complex combination of technology, art and
interactive storytelling (Cohendet and Simon, 2007).
In addition to these creative aspects, such a cultural
product is also the result of a team-based industrial
project regulated by a complex framework.
Nowadays, with the increasing competition in the
industry, the demands and standards from the top
management are sometimes on the opposite side of
the developers' quest for game quality. Under this
framework, the top management will make demands
on developers from a business perspective based on
time, cost and market considerations. From the
perspective of the development team, sometimes they
have no choice but to accept the management process
or related decisions under these management
frameworks, which may result in a significant loss of
creativity and uniqueness during the game
development process.
Therefore, for the management of a large-scale
video game project, it is actually a result of
Zhang, Z.
Study on the Relationship Between Creativity of Video Games Development and Rigid Management Process.
DOI: 10.5220/0013253200004558
Paper published under CC license (CC BY-NC-ND 4.0)
In Proceedings of the 1st International Conference on Modern Logistics and Supply Chain Management (MLSCM 2024), pages 177-184
ISBN: 978-989-758-738-2
Proceedings Copyright © 2025 by SCITEPRESS Science and Technology Publications, Lda.
177
maintaining a delicate balance (DeFillippi and
Arthur, 1998). On the one hand, it is important to
stimulate the creativity and motivation of team
members from different backgrounds or communities
and try to integrate their expertise in a flexible way.
On the other, it is about trying to meet time, cost and
market requirements with a standardized but not too
rigid or demanding management process (Lampel et
al., 2000). By analysing the choppy history of
Ubisoft, this paper explores how changes of
management process affect this balance between
creativity and institutional productivity, whether it is
stimulating the innovation or curbing it with more
chaos and inefficiency. Besides, by analysing the
mechanism of this impact, it is hoped that some more
general, potential optimizations of the management
framework for video game development can be
provided.
2 BACKGROUNDS
2.1 History of the Video Game
Industry
Video games can be traced back to the 1950s and
1960s, when computer scientists began to try to
design simple games and simulations using
minicomputers. “Spacewar!”, one of the earliest
games to appear on a video display, was developed
by student enthusiasts at MIT in 1962 (Martin, 1981).
By the mid-1970s, the advent of low-cost
programmable microprocessors led to the first home
game console. During this era the arcade video games
were becoming more and more popular, such as
“Space Invaders” and “Pac-Man” (Alexander, 2019).
Moving forward to 1983, the U.S. gaming market was
on the verge of collapse due to the terrible game
quality and proliferation of homogenized games.
Such an incident prompted Japanese video game
industry to take over the market leading position
(Gallagher and Park, 2002). Nintendo released the
Nintendo Entertainment System in 1985, which gave
a huge boost to the video game industry at that time
(O'Donnell, 2011). During the late 1980s and early
1990s, the standardization and improvement of
personal computers further fuelled the growth of
video games. Furthermore, the intense competition
between Nintendo and Sega in the U.S. market during
this period also contributed to the development of the
game console industry. Into the early 1990s, the start
of Sony Play Station not only eroded Nintendo's
market share, but also kicked Sega out of the gaming
hardware market (Gavin, 2015). Following Sony's
entry into the console market was the Xbox from
Microsoft in the early 2000s and it was at this time
that the future “Big 3” competition of the game
console industry was established. However, the
biggest change in the game industry since 21
st
century
is the development and popularization of smart
phones and tablet computers. Gradually, mobile
games began to occupy a larger share of the market.
Besides, demographic structure of the industry is
different as well. Compared to the 3A games with
increasingly higher risk and cost, more and more
delicate and creative indie games came to the
attention of the public during this period (Richard
2017). In recent years, as mobile devices had become
much more powerful, mobile gaming is slowly
becoming a dominant force in the gaming industry,
with a staggering 107.3 billion dollars revenue from
app stores alone. Along with the rise of mobile games,
eSports industry had also come to the centre of the
stage. Nowadays, eSports attracts huge audiences all
around the world and rivals traditional sports in terms
of viewership and revenue. It is expected that eSports
industry is able to reach 5.4 billion dollars in revenue
by 2027 with 720 million viewers.
Overall, the video game industry today has gained
unprecedented growth and attention. However, a
growing saturation of the game content and
increasing competition in the industry keep testing the
practitioners. Additionally, more negative or
sensitive issues about the industry are brought under
the microscope by the general public, such as
cybersecurity and regulatory issues, microtransaction
systems with a gambling nature and the negative
effects of soft pornography along with violence on
minors.
2.2 Creativity and Management
Processes of the Gaming Industry
Technically, video games are software running on the
hardware. Therefore, for the creativity of the game
industry, it can refer to both innovation in software
and iteration in hardware. The term “innovation” or
“creativity” in this paper mainly refers to the
creativity related to gameplay and game content.
Compared to general commodities, video games
are a product with a relatively short lifespan.
Nevertheless, the process of development requires
quite large investment and time cost, which means
that, for a video game with a long development cycle
and large upfront investment, there is little room for
errors. The vast majority of single-player game sales
are concentrated in the first three months after release.
All these factors lead to a very competitive market,
MLSCM 2024 - International Conference on Modern Logistics and Supply Chain Management
178
making novelty, innovation, and originality
increasingly important during the game development
phase (Lê et al., 2013). However, the pursuit of
innovation in game development must be
accompanied by efficiency and financial prudence in
the process.
From this point of view, the process of developing
a game can be called an “innovation project”
(Zackariasson et al., 2006). When people talk about
projects, they usually consider them as the opposite
of creativity or flexibility, due to the fact that a project
needs to have a clear scope, a completion date, a
corresponding budget and clear requirements for the
final output (Nicholas, 2001). One of the advantages
of this management process is that it can be rigorously
planned and scheduled to enable projects to be
completed on time. In practice, some projects can
indeed be clearly defined and planned in advance, but
this is difficult for game development, especially for
large-scale game projects that aim for originality and
creativity. One of the great obstacles is that it is
almost impossible to come to an agreement in
advance for specific outcomes and dates to be
delivered. Therefore, in the process of game
development, in order to balance quality and
efficiency, the goals are often qualitative and short-
lived, and are gradually refined as the development
process proceeds. Similarly, for game companies, the
management process should also keep up with the
trends and timely make suitable adjustment.
3 CASE STUDY
3.1 Research Context
Ubisoft Entertainment SA is a video game developer
and publisher founded in 1986 and headquartered in
France. With nearly 30 studios around the world, it is
currently the second largest independent
development team in the world. Ubisoft used to be a
leader in the industry, with its strong innovation,
excellent artistry, and top-notch technology.
However, in recent years, Ubisoft has taken a
completely opposite path, turning from the “big
brother” to a controversial little brother, with projects
being axed, games being constantly postponed,
employees going on strike and reputation collapsing.
It seems that the once-venerable company has run out
of steam. The creativity dried up, the overall game
quality dropped, and the company is bloated and
inefficient. This section mainly focuses on how
certain management processes contributed to the
burst of creativity in project development during
Ubisoft's rising stage around 2015.
3.2 The Industry Leader
3.2.1 Project-led Organization
Ubisoft has many great game franchises which are
known for their great creativity, such as Assassin's
Creed, Rainbow Six, and Raging Rabbids. Take
Ubisoft's most widely recognized studio, Ubisoft
Montreal, for example, which employs over two
thousand people and is one of the largest game
development studios in the world. Many of Ubisoft's
flagship IPs come from the Montreal studio, such as
Prince of Persia, Rainbow Six, Far Cry and Assassin's
Creed. Like other organizations that have multiple
creative projects running in parallel, the studio fits the
description of a “project-led organization” (Hobday,
2000), with typically around 15 projects running
concurrently within the studio. Each project is
independent and managed in different phases. The
overall project leader has more autonomy but is still
under the supervision of the studio management team
as well as ad hoc supervision from the marketing and
innovation departments at headquarters.
In terms of the process, the advancement of a
project can be roughly divided into three stages:
initial conceptualization, establishment of the project,
and production, with repeated evaluation and
adjustment through internal project meetings along
with project team - senior management team meetings
interspersed between these three steps. In most cases,
the top management team has the final say. The
evaluation of the game's innovation and gameplay is
executed through an internal process. At the Montreal
studio, the overall development is managed by an
executive project manager, with a core team and a
playable production team (Cohendet and Simon,
2016). During the initial conceptualization phase, the
core team chooses to either breed a new IP or re-
create an existing one, based on market research,
technical capabilities, and advice from industry
experts; and then maintains an iterative development
spiral during the pre-conceptualization phase, testing
and refining the team's ideas. Once the project team
believes the idea is mature enough, coordination
between the development team, the studio, and the
headquarters establishes the direction of the entire
development. After the first phase, the project team
will present the mature idea and the prospects of the
game concept in a kick-off meeting, which also marks
the start of official pre-production phase. In addition
to presenting conceptual content, this meeting also
allows senior management to understand the game's
market position and potential, planning the launch of
the final product. This project-led creative process
Study on the Relationship Between Creativity of Video Games Development and Rigid Management Process
179
allows the project team to produce a new game in a
relatively fixed way which is quite “cookie-cutter,”
while providing relatively greater flexibility within
such a fixed framework.
3.2.2 Technological Innovation
Although the emphasis of this article is not on the
innovation of technological in the gaming industry, it
can in turn drive breakthroughs in game content.
There are two general sources of technological
innovation, the first being the release of new game
consoles; the second being the development of new
game engines or improvements to existing game
engines.
For new console releases, Ubisoft have a
department dedicated to predicting and interfacing
with new technologies. This department will predict
what aspects of the game will be improved by the new
console, such as the graphic expressiveness or the
movement verisimilitude. According to these pre-
investigations, Ubisoft is able to deploy in advance to
start adapting to the corresponding technological
changes and come up with new ideas related to
gameplay and game design.
Generally speaking, the emergence of new
technologies provides the inspiration and foundation
for new gameplay. Having such a process in place
allows the company to make more systematic and
comprehensive assessments of gameplay innovations
and potentials, meanwhile speeding up the response
time. More importantly, developers actually have a
greater voice during this process. Part of the reason
why Ubisoft places so much emphasis on this process
is that, for the company, the first step in the
conceptualization phase of a game's development is
to try to find the technological breakthroughs that will
trigger a creative spark. Tom Clancy's Splinter Cell,
for example, is a famous example of this concept,
where Ubisoft utilized advances in its own engine to
bring new inspiration and development direction to
game design.
3.2.3 The Hidden Structure of Creativity
Within an organization, members more or less have
the chance to meet or communicate in a looser and
relaxed way. Admittedly, a large part of the content
of these relatively informal communications is not
aligned with the company's goals or strategies.
However, it is often in these informal communication
opportunities and spaces that members of the
organization are able to boldly build hypotheses,
exchange ideas face-to-face and actively explore in a
relaxed environment. Such an approach can be seen
as a place for knowledge exchange and creativity
outside the corporate system, one hidden structure for
innovation.
Taking Ubisoft Singapore studio as an example,
they have deliberately cultivated a culture where
hobby clubs are an integral part of the studio. These
clubs operate organically during off-hours, providing
opportunities for employees to get together and try to
maximize the advantage of invisible creativity
structure. At Ubisoft Singapore, the company has
more than 30 active clubs covering a wide range of
activities, from running clubs, to fight clubs, to food
clubs and even more. In this way, the Singapore
studio hopes to help them create a harmonious
atmosphere in the office. According to one of the
studio's writers, who is responsible for designing the
game's story flow, “A lot of the dialog and design
needs to take place in a relaxed and comfortable space.
By nature, game development is a very collaborative
space. Out of necessity, every developer has to
constantly collaborate with each other.” Attempting
to build open communication spaces within the
company in an organized manner has both enhanced
collaboration and the exchange of ideas between
employees, as well as improved the working
environment. Such places allow employees to step
out of their everyday roles and try out completely
different roles and ways of interacting with a more
open and inclusive mindset. Besides, because the club
includes director-level employees, participants have a
real opportunity to learn from more experienced
industry veterans.
In addition to this, Ubisoft encourages having
multiple studios from different parts of the world to
collaborate on one project to increase the diversity
and richness of ideas. These worldwide exchanges
empower game development with a broader range of
thinking and creativity, bringing a better chance of
resonating with players around the world.
Such invisible open-innovation spaces, outside of
the relatively more serious day-to-day organizational
structure of a company, create a series of informal
interactions that provide a diverse and more vibrant
framework for the process of discovering new ideas.
4 PROBLEM OBSERVATIONS
4.1 The Fall of Ubisoft
According to Ubisoft's 2023 earnings report, revenue
fell 56% year-on-year in the fourth quarter of 2022,
while the net loss for the whole year of 2022 even
exceeded $538 million, far exceeding the company's
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loss expectations. The former gaming giant has fallen
into deep water in recent years, and the company's
stock price also fell to a seven-year low in 2023. The
company's management had recognized the
seriousness of the problem. CEO Yves Guillemot
once sent an internal email to all employees asking
them to devote themselves to helping Ubisoft get
back on track. However, the email was seen by many
employees as an attempt to shirk their
responsibilities, with many saying that it was an
attempt to pave the way for mass layoffs and
increased workloads. As employees reacted more
aggressively, it even sparked a strike at the Paris
studio. This section focuses on what kinds of
management process issues have emerged in the
course of the company's continuous growth and
changes in the industry as well as consumer groups,
which set the stage for their current internal and
external troubles.
4.2 Problem Focus
4.2.1 Large Scale and Low Productivity
Since 2020, Ubisoft's production capacity has been
declining year after year. In 2019, the company
launched about 10 new games, in 2020 there were 7,
and in 2022, the number of games released for the
year was reduced to 4, with the overall quality being
even more unsatisfactory. Nonetheless, along with
this decrease in efficiency, the company size just kept
growing. Ubisoft's ongoing strategy of globalization
led them to have 45 studios in close to 30 countries at
one point. Such a strategy did give them a diversity of
backgrounds and ideas, but the company's volume got
out of control. Even after the structural reorganization
and layoff fiasco of 2023, the company's total
headcount still stands at about 19,000. By contrast,
the entire Activision Blizzard workforce is only
13,000, but the company's market capitalization is
four times that of Ubisoft.
4.2.2 Triple Mistakes of Game Development
Today's Ubisoft has three serious problems in game
development that make them mediocre in terms of
gameplay, aesthetics, and technical aspects. The first
is the serious homogenization of their productions.
Ubisoft, as both a developer and publisher, has had a
number of distinctive IPs of all shapes and sizes, yet
nowadays, every Ubisoft game feels like deja vu. This
sense doesn't just appear on the surface, it has even
permeated the core of every Ubisoft game. The
constant replication of existing systems or the
excessive reuse of RGB gameplay elements and
open-world design features force players to expect
nothing more from a Ubisoft game when it comes to
innovation.
The second issue is the significant drop in
gameplay experience. Due to the repetitive and
formulaic design of the work and the lack of creativity,
the playing experience tends to be uninspiring as well.
Moreover, today's Ubisoft games often lack excellent
directors and scripts during the development process,
making it difficult for players to empathize with a
formulaic world which also lacks the sense of
immersion and realism.
The third problem lies in Ubisoft's current
operating model - a continuing operation model.
There is nothing wrong with the mode itself which
can be applied to both online games and single-player
games. Whereas the issue is that Ubisoft is relatively
inexperienced in this type of operation. They are good
at running game communities, which in a way enables
their big Ips to collect a large number of fans in a
relatively stable manner. However, Ubisoft is terrible
at listening to players' suggestions, seldom making
changes that meet players' wishes. The failure of
Rainbow Six's eSports is the embodiment of such a
drawback. Ubisoft as a company without long-term
operational experience insist to develop service-
oriented games and continuing operation, which is
obviously not a wise decision.
Until the company's financial reports have
become more and more unimpressive in recent years,
Ubisoft was dragging its feet on all sorts of issues,
steadfastly following through with its own boring
production models, acting like a factory that delivers
delicate yet frowned canned goods to the marketplace.
4.3 Sources Analysis
4.3.1 Subcontracting
As studios spread around the world, Ubisoft gradually
developed a special “subcontracting” model. In other
words, the same game project was assigned to
multiple studios for joint development, with artwork,
programming, scripts, and other types of work
subdivided and assigned to multiple studios for
completion. However, Ubisoft set up a separate
“Editorial Committee” to oversee the development
process of a game and make key decisions about the
whole project. Under this model, Ubisoft was able to
accelerate the development process and make the best
use of their company's size (before it became
overstuffed). This management process meant that
the power of life and death for each game was in the
Study on the Relationship Between Creativity of Video Games Development and Rigid Management Process
181
hands of a few people, while individual inspiration
and creativity are always limited, as are one's
viewpoints and perspectives. In fact, individuals at
the bottom of the hierarchy are capable of making
decisions that have a significant impact on company
performance in knowledge work (Drucker, 1967).
Moreover, excessive interference from the top is one
of the major reasons why some games are difficult to
produce. Sometimes this intervention was about
gameplay changes, and other times it was pressure on
the development team to keep the development
process on schedule.
In the run-up to 2020, Ubisoft was repeatedly
confronted with the conflicting issues of efficiency
and creativity, and their choice was to err on the side
of capacity. The subcontracted development model
ensures a high standard of efficiency, and a
development process that pushes multiple studios
together has led to a reduction in development time.
Along with the development process, the cost of
developing the game has been reduced as well.
Ubisoft prefers to minimize the cost of the
development process compared to the cost of
marketing and distribution, which is achieved by
repeatedly utilizing similar game models and game
materials to create a so-called “canned” production
line.
In 2020, with a series of scandals such as
“fraternity culture” and “workplace discrimination”
coming to light, Ubisoft's senior management
underwent a major bloodbath, including the dismissal
of some senior members who had been leading the
development decisions. The development team
finally began to break free of the editorial team's
authoritarian rule. However, the vacancy of the
position of development coordinator left the project
without the leadership of the top management.
Ubisoft did not see a surge in the quality of its games,
and its production capacity was also declining until
the beginning of 2023.
4.3.2 The Split between Technology and
Creativity
In general, the final video game product is the result
of a trade-off between creative design, technological
constraints, and platform limitations (Alves et al.,
2007). As mentioned earlier, Ubisoft has experienced
management turmoil in recent years under the
umbrella of a subcontracted development process.
For development teams, distrust spread within the
team if development members feel that management
lacks the technical knowledge to make practical
decisions (Murphy-Hill et al., 2014). Indeed, it is the
case that the turbulence of the co-ordinated project
developers makes it difficult for the management to
make a rational assessment and decision on the
overall development work. Meanwhile, it is more
difficult to coordinate the different work divisions
within the project, one of the specific manifestations
of which is the conflict between game designers and
programmers - the split between creativity and
technology. Creative ideas in game design are
sometimes perceived by programmers as redundant
and difficult to implement features. The designers
may consider it as a creative idea that improves the
gameplay and facilitates the player. However, on the
one hand, there is no such evaluation mechanism. On
the other hand, most programmers have defaulted to
Ubisoft's formulaic design, and no one is willing to be
the one to initiate change. This vicious cycle not only
drained inspiration and creativity from game
development, but also had a negative impact on the
team's internal communication and atmosphere.
Conflicts between designers and programmers,
between art and gameplay, and between different
studios, all of which increase the difficulty of
development.
4.3.3 Informal Community Maintenance
From a more intuitive point of view, the interaction
of the informal community within the company is
bound to be affected to a greater extent by the
increasing size of the company and the proliferation
of internal and external troubles. The specific process
of this interaction explains how creativity is inhibited:
members of informal organizations, who are also
members of the development team of a particular
project within the company system, have a dual role
(Cohendet and Simon, 2007), i.e., as a member of a
particular project and as a member of a particular
informal community. This dual identity gives
members the opportunity to acquire and exchange
knowledge in both directions, allowing an innovative
idea to flow into the wider organization of the
company and to be refined in this circulation. For the
company, it also fosters interaction between different
communities and strengthens the company's common
culture. Gradually, this interaction brings closer the
cultural distance between different project teams
within the company (Nooteboom, 1999). This
increasingly rational ability to understand each other
indirectly stimulates the creativity of team members.
As Nooteboom points out, a lack of communication
between different project teams within a company, or
little gap in perception between them, diminishes a
company's ability to innovate. For Ubisoft, the effort
MLSCM 2024 - International Conference on Modern Logistics and Supply Chain Management
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to maintain an informal organization within the
company could have made a big difference in the way
development projects were managed, making the
process more flexible and the atmosphere more
harmonious, and giving the teams the ability to
“renew and improve” themselves. However, as the
company's problems mounted, this kind of
communication became a catalyst that accelerated the
spread of negative energy, with positive
communication turning into complaints about
executives or worries about one's career prospects.
4.4 The Future Work
As time moves into 2024, it is clear that Ubisoft has
realized the severity of the problems, and that they are
not helpless in the face of their predicament.
Accelerating multi-platform layout, adjusting overall
development strategy, and optimizing organizational
structure all seem to be good choices for its future at
this point. Nevertheless, how to re-ignite the
company's creativity is a much knottier goal. The
restoration of organizational creativity is difficult to
achieve through a smooth and continuous adjustment
mechanism (Cohendet and Simon, 2016). What is
needed is most likely the introduction and
establishment of new things in the organization by
breaking existing rules and roles, rearranging some of
the interaction processes, making constant
adjustments to the organizational structure, and
listening more to the employees as well as to the
players. What also needs to be built together is
Ubisoft's long-lost reputation as a gaming company
among the community. How to restore the balance
between efficiency and creativity, flexibility will be
the ultimate proposition on Ubisoft's road back.
5 CONCLUSIONS
Ubisoft was the leader of the video game industry, yet
as time went on, however, they didn't capitalize on
their size and influence to make more attempts and
breakthroughs. Instead, they chose to stay within the
comfort zone, replicating development formulas,
which has turned them into a follower of the crowd,
losing creativity and competitive edge in the
industry's rapid advancement. Unfortunately, the
rigid management system and chaotic organizational
structure accelerate the process of degeneration.
Analysis from three perspectives - changes in the
game development process, the alignment between
technology and creativity, and the maintenance of
informal organizations - reveals that the loss of
creativity and defects of the management process is a
vicious circle. The negligence of trivial problems,
lack of listening to the genuine ideas from team
members are also part of the circle. In this context,
analysing the relationship between management
processes and creativity along with the mechanisms
that influence them is of greater academic and
practical significance. Hopefully, in future research, a
horizontal comparison of the management structure
characteristics from different game companies is able
to bring a greater comprehensiveness and a stronger
reference to this study as well.
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