Midway Creates Outsourcing Hub In Austin

Major publisher and developer Midway Games (Stranglehold) has announced that it has consolidated its studio's product development outsourcing efforts with the formation of the Central Outsourcing Group (COG), which will be led by the company's Austin studio. Company officials note that the newly formed operation will by lead by Midway's Austin studio, and that the initiative will spearhead all of the company's outsourcing efforts and help streamline game development. The group's new mission will be to, according to Midway, build "efficient outsourcing pipelines and processes across all studios," seek new art and technology partners, and build long term with relationships with outsourcing studios that will act as extensions of the developer's internal teams. Outsourcing has become an increasingly common practice among development projects, a growth that many attribute to the higher costs associated with next-generation game development. Media research company Screen Digest estimated as part of a 2006 report that the game outsourcing market will grow to $2.5 billion by 2010, representing around 40 percent of total game development expenditures. “Consolidating all product development outsourcing initiatives into a centralized group will allow Midway to focus on creating AAA next-generation content,” commented Matt Booty, senior vice president, worldwide studios, Midway. “This core team will provide expertise in outsourcing management and development pipelines across all of our internal studios.”