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In the hardware business, companies that make gaming hardware also makes games on other platforms, such as Commodore International, Hudson Soft (in association with NEC), SNK and Bandai, companies who have done this previously.Microsoft had allowed some of their games on Nintendo handhelds such as Banjo-Kazooie: Grunty's Revenge despite the company currently lacks a handheld, they had also released Minecraft on Wii U.These studios may have exclusive publishing agreements (or other business relationships) with the platform holder, while maintaining independence.Examples are Insomniac Games (which previously developed games solely for Sony's Play Station platforms as an independent studio), ADK for SNK consoles, Rareware for Nintendo, and Game Freak (which primarily develops the Nintendo-exclusive Pokémon game series).One reason is that since the developers are employees of the publisher, their interests are aligned with those of the publisher; the publisher may spend less effort ensuring that the developer's decisions do not enrich the developer at the publisher's expense.

However, since publishing is still their primary activity they are generally described as "publishers" rather than "developers".Developers may be private as well (such as how Bungie was, the company which developed the Halo series exclusive to Microsoft's Xbox).In the video game industry, a first-party developer is part of a company which manufactures a video game console and develops exclusively for it.A developer may not be the primary entity creating a piece of software, usually providing an external software tool which helps organize (or use) information for the primary software product.Such tools may be a database, Voice over IP, or add-in interface software; this is also known as middleware.All these developers continue operating much as they did before acquisition, the primary differences being exclusivity and financial details.Publishers tend to be more forgiving of their own development teams going over budget (or missing deadlines) than third-party developers.Third-party game development is a volatile sector, since small developers may be dependent on income from a single publisher; one canceled game may be devastating to a small developer.Because of this, many small development companies are short-lived.A third-party developer may also publish games, or work for a video game publisher to develop a title.Both publisher and developer have considerable input in the game's design and content.

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