The development of a videogame is an artistic endeavor dependent on a number of disciplines, and understanding the creative nature of firms in this industry is tantamount to understanding the “skunk works” of the aerospace industry. Empirical information was collected as an ethnographic study of a game developer with approximately seven years experience in producing videogames. Our EPM observations at this particular firm, and gaming in general, fit into three categories— personnel, which form the foundation of capabilities, management of the primary development project, and leadership.

The videogame industry is an interesting one. In some aspects, understanding the creative nature of firms in this industry is tantamount to understanding the ìskunk worksî of the aerospace industry. These games have evolved over a few decades from being ìfunî exercises at universities to a business in which annual revenues exceeded that of Hollywood box office receipts (Castronova, 2003). This growth in itself is rather spectacular, but additionally the output in the industry has kept pace with developments in technology and taste in a manner that
satisfies a youngish, technically astute market.

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