In 2002, video game developer Todd Howard was in his eighth year at Bethesda Softworks, and had recently led the development and launch of the company\u2019s first blockbuster video game, titled \u201cThe Elder Scrolls III: Morrowind.\u201d At the time, Bethesda Softworks was pushing up to five video games out of the door per year, and was receiving poor ratings by industry critics. Howard then spun off a new company titled Bethesda Game Studios (BGS) to focus on low quantity, high quality game development.<\/p>\n
Business model: \u00a0<\/strong>BGS\u2019 business model is developing high quality video games to be published and distributed by Bethesda Softworks. BGS develops only two game franchises: \u201cThe Elder Scrolls\u201d and \u201cFallout\u201d, and stays loyal to these game series by developing in-depth stories that connect across each episode of the series.<\/p>\n While most video game studios release a new game either every year or every other year to cash in on the loyal fanbase, BGS takes a different approach by only releasing a new game in one of their two franchises every five to six years. For example, The Elder Scrolls IV: Oblivion was released in 2006 and The Elder Scrolls IV: Skyrim was released five years later in 2011, to much anticipation and even greater sales. BGS focuses on the quality of the game and providing unique value to the player.<\/p>\n BGS\u2019 approach is similar to Gabe Newill\u2019s company Valve in that Valve\u00a0is committed to high quality games and does not operate on a firm timeline for releasing new titles, often to the frustration of fans. Unlike BGS and Valve, many video game companies routinely push out sequels on a regular basis, such as the competitors Activision and Ubisoft, which release the \u201cCall of Duty\u201d and \u201cAssassin\u2019s Creed\u201d sequel games on a yearly basis.<\/p>\n