Why the gaming industry greatly depends on outsourcing?

The process of outsourcing in the console and online gaming industry is mainly about delegating many tasks to independent studios, artists, and programmers. These tasks consist of mainly 2D or 3D animation or character design. Back in the day, gaming creative studios used to have their own in-house artists and programmers.
Things have changed with the sharing economy. Outsourcing is no longer a risky practice in the console or online gaming industry.
According to Brice (2009)[i], 83% of UK video game developers including Blitz Games and Ubisoft Reflections have outsourced part of their projects. Many companies in the gaming industry started using outsourcing initially as a short-term cost-saving strategy. But later, studios started including outsourcing as an essential business strategy as the benefits revealed to be much better on the long term.

Here are some examples of how the games would look with and without Outsourcing

Sniper: Ghost Warrior 2 – 2013

Kinect Star Wars – 2012

In an increasingly competitive world, outsourcing will continue to be one of the strong pillars of the gaming industry. Faster connections and more robust smartphones will continue to drive excellent consumer demand worldwide. Game Developers will be compelled to improve their existing development cycles to not only manage costs, but also to increase output across all production stages.
Without outsourcing, games would have lacked a lot of features thus impacting negatively on a whole 91.5 billion dollar industry.

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