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Established in 2004, Virtuos has emerged as a prominent player in the video game production industry. With a workforce exceeding 4,200 skilled game developers, the Singapore-based company serves as an external development partner, assisting game studios and publishers with the completion of their projects.
Virtuos specializes in both completing smaller titles with increased support during the final stages of development and engaging in long-term co-development partnerships with publishers at the onset of new projects. The company maintains a significant presence in Asia and has collaborated with nearly all of the world’s top 25 entertainment firms, contributing to both video and gaming content.
In recent discussions with Virtuos CEO Gilles Langourieux, held both online and in person at events like the Dice Summit in Las Vegas, we explored various topics including the current state of the gaming job market and the application of AI in game development.
Starting in Shanghai, China, in 2004, Virtuos has expanded its footprint to cities such as Chengdu and Xi’an. The firm relocated its headquarters to Singapore in 2018 after acquiring Sparx in 2011. To date, Virtuos has completed over 1,000 projects for leading digital entertainment companies globally.
Recent projects include downloadable content (DLC) for titles like Cyberpunk 2077 and Metal Gear Solid Delta: Snake Eater. Langourieux expressed enthusiasm for upcoming games such as Marvel 1943, Judas, and Doom. Our conversation also delved into various industry trends, the impact of budget constraints on creativity, and the importance of global collaboration in game development.
GamesBeat: How was the DICE Summit? I saw you there briefly.
Gilles Langourieux: I enjoyed it, though I found myself occupied with meetings rather than networking. Typically, I spend more time on the ground engaging with others. This time was different, possibly due to the ongoing reorganization across the industry.
GamesBeat: I had a similar experience with back-to-back meetings. There was no time for casual catch-ups.
Langourieux: I appreciate your effort—you pointed me to an interesting conversation transcript between Neil Druckmann and Cory Barlog that addressed creativity. I would have loved to attend that discussion live.
GamesBeat: Their perspective on balancing business demands with creativity was insightful. Ultimately, deadlines compel teams to focus their efforts.
Langourieux: That perspective applies at a global level too. As budget constraints tighten, we may witness a surge of creativity. The pressure to meet deadlines, as experienced by Neil’s team, can similarly inspire innovative solutions when funds are limited.
Investment in Western Studios
We have recently invested in three development studios in the West, a strategic move aimed at proving our full game development capabilities. This enhancement will facilitate better collaboration with clients during pre-production, enabling a smooth start to co-development relationships. Building trust early is crucial, and having teams aligned culturally and temporally aids significantly in this process.
Studios like Pipeworks on the West Coast, Umanaïa in Montreal, and Abstraction in Central Europe are pivotal to this effort. They bring localized advantages, having extensive experience in co-development, while we contribute scalability that may have been previously limited.
Amid tighter budgets, we believe our role is increasingly to provide flexibility to game development studios, as they size down to more agile internal teams. Previously, our operations in China relied on distant offshore teams. Now, our closer proximity to clients allows for more collaborative and timely development.
GamesBeat: There’s an interesting divergence in strategies. Companies like Netease are focusing on domestic capabilities for AAA gaming, while you seem committed to a global development model.
Langourieux: Indeed, we operate as a development studio focusing on co-development. Our global setup is designed to facilitate collaborations across North America, Europe, and Asia, maximizing our engagement with different markets. This global strategy is essential for our business model and doesn’t align with the practices of publishers.
It’s undeniable that strong development talent exists worldwide, including in China as showcased by Black Myth: Wukong. Our approach is to integrate talent from various regions, enhancing cooperation among studios to achieve effective solutions. We refer to this strategy as a “glocalized” approach—one that balances global reach with local expertise.
GamesBeat: How many additional studios are you aiming to invest in?
Langourieux: Our strategy is not about acquiring numerous studios blindly. We’re focused on establishing a presence in each key region for game development. Our aim is to cover all vital talent pools without duplicating efforts with competing studios within the same locale.
For example, we acquired Black Shamrock in Ireland, which has grown from 15 to 200 employees since 2017. Our focus remains on nurturing acquired studios rather than amassing a multitude of competing entities.
GamesBeat: Do you currently have around 4,200 employees?
Langourieux: Yes, the recent acquisitions brought our total to 4,200 across 25 different locations. All our studios are equipped to collaborate effectively on the same platform to meet our clients’ production needs.
GamesBeat: Looking ahead to 2025 and beyond, what are your expectations?
Langourieux: The landscape holds both promise and challenges. We are excited to launch DLC 2.2 for Cyberpunk, showcasing our capacity for expanding existing IPs while diverting resources to other projects. The announcement of the Metal Gear Solid release date is another highlight that underscores our co-development expertise with high-end engines like Unreal 5.
However, the market remains volatile with ongoing cancellations and the aftermath of the 2021-2022 overinvestment bubble still in play. We must remain vigilant and agile as we navigate this evolving scenario.
GamesBeat: Have you observed any instability among large companies, or signs of businesses still undergoing restructuring?
Langourieux: While echoes of past upheavals, reminiscent of 2008’s Midway and THQ, linger, I do not currently see major publishers nearing collapse. There certainly is reorganization occurring, but no significant threats of shutdown appear imminent for the larger players.
GamesBeat: How do your studios diversify in terms of capabilities, for instance between Unreal and Unity gaming engines?
Langourieux: Five years ago, proprietary engines dominated our output, comprising over 60% of our projects. Currently, we see more than 60% of our work taking place within middleware engines like Unreal and Unity. This shift reflects our increased involvement in larger projects, which tend to favor Unreal’s capabilities. The trend indicates greater market alignment with Epic’s claims about its significant share.
On the positive side, the transition to standard engines facilitates easier skill transfer among team members during restructuring caused by cancellations, optimizing our ability to deploy talent across different projects without retraining delays.
GamesBeat: How significant are emerging technologies like cloud gaming in shaping the industry?
Langourieux: Cloud gaming is increasingly vital, with substantial investments from major players like AWS and Microsoft, and initiatives emerging from Chinese companies like Tencent and Alibaba. For instance, Xbox is experiencing growth in Asia, using cloud tech to engage gamers accessing services through lower-end devices. This development signals exciting prospects for the industry.
We’re eager to explore how these technologies can merge with AI to foster innovative gameplay. At GDC, we plan to reveal joint initiatives with AI company Inworld, showcasing the potential for novel gaming experiences.
GamesBeat: Have any AI tools demonstrated their long-promised capabilities?
Langourieux: Rather than identifying a single standout tool, I observe that a combination of tools is now transforming traditional workflows, leading to increased efficiency. The first wave of AI integration appears to enhance various processes rather than produce a revolutionary application. While spectacular games haven’t emerged from singular prompts, we are witnessing dramatic changes in workflow and gameplay thanks to the integrated capabilities that AI brings.
In terms of future prospects, there’s undoubtedly more transformation on the horizon.
GamesBeat: Do you anticipate new console releases soon, especially after Nintendo’s announcement?
Langourieux: Currently, I lack any insights on anticipated timelines. However, I’m excited about the prospects of reaching an additional segment of players who rely on lower-cost gaming platforms, accessed via cloud infrastructure tailored to their preferences and financial capacities. Developing markets in Asia, Africa, and South America present plentiful opportunities for engagement with new gamers.
GamesBeat: What are your perceptions of trends like the metaverse and blockchain in relation to your working environment?
Langourieux: At this point, we don’t see significant movement in those areas—our focus lies primarily on enhancing strong IPs within new markets. The shift continues towards leveraging smaller studios and developing innovative models to cater to a larger audience.
GamesBeat: I’ve heard that many studios prioritize gameplay over building a robust IP. How do you view this process?
Langourieux: This has been a historical approach, prioritizing gameplay breakthroughs before the overall game architecture is defined. However, diverse teams employ varying strategies. Some prioritize fleshing out universes and narratives before finalizing gameplay mechanics. Consumer publishing emerges as a growing trend where communities are engaged early, contributing to game development collaboratively, a practice that was not mainstream in previous years but is becoming increasingly common.
GamesBeat: With continuous updates in live-service games like Call of Duty Warzone, are players still open to trying new IPs?
Langourieux: It’s an interesting conversation. While many players return to established titles, those games evolve continuously, offering fresh experiences beyond their original versions. This process contributes to revenue generation in diverse ways. Comparatively, it’s like some players today frequently purchase sequels instead of entirely new titles, a norm we’ve experienced in gaming for decades.
GamesBeat: Discovery of new IPs does seem to be narrowing due to the influence of ongoing live-service experiences.
Langourieux: Absolutely, the time frame for new explorations has certainly contracted as players engage deeply with familiar titles.
Source
venturebeat.com