UNCOMPENSATED OVERTIME

OF EMPLOYEES IN VIDEO-GAME
DEVELOPMENT COMPANIES
 An Academic Proposal on

Uncompensated Overtime of Employees in

Video-Game Development Companies
Course C102: Business Communication

Submitted to
Rezwanul Huque Khan
Professor

Submitted by
Ahnaf Ahmed Mahee (Roll: 40)
Nafis Rahman (Roll: 78)
Sazid Rahman (Roll: 80)
Lamim Wasek Khan Lodi (Roll: 86)
Ashraful Islam Durjoy (Roll: 90)

Institute of Business Administration, University of Dhaka

Date of Submission: 14 November 2022
November 14, 2022

Dr. Rezwanul Huque Khan

Professor & Coordinator, BBA Program
Institute of Business Administration, University of Dhaka

Subject: Letter of transmittal for academic proposal on “A Study on A Study on

Uncompensated Overtime in Video Game Development Companies”

Dear sir,
We, Nafis Rahman (78), Lamim Wasek Khan Lodi (86), Ashraful Islam Durjoy (96),
Sazid Rahman (80) & Ahnaf Ahmed Mahee (40) from Section B of BBA 30th Batch
have prepared this proposal on “A Study on Uncompensated Overtime In Video Game
Development Companies”, which has been assigned to us as a requirement for the
completion of this course.

The practices of work-hours inside the videogame-industry have been documented

heavily in the press and existing literature, covering scandals of overworked employees,
revoke of contracts illegally after project completion, pay discrimination based on
employee’s identity and so on. The study is to analyze the details on how companies
exploit workers and how these exploitations contribute in the workers’ financial and
mental detriment.

The analysis will be qualitative, mainly based on secondary data and both documented
and undocumented evidence. We are eager for your go-ahead for this report. We hope
that our proposal meets your expectation.

Sincerely,

Ahnaf Ahmed Mahee (Roll: 40)

Nafis Rahman (Roll: 78)
Sazid Rahman (Roll: 80)
Lamim Wasek Khan Lodi (Roll: 86)
Ashraful Islam Durjoy (Roll: 96)

BBA 30 (Section: B)
IBA-DU

TABLE OF CONTENTS
SL Contents Page
No. no.
1 Executive Summary v
1.0 Introduction 01

1.1 Background 01
2
1.2 Objective of the Proposed Study 02

1.3 Organization of the Proposal 03

2.0 Literature Review 04

3 2.1 Market Condition 04

2.2 Theoretical Underpinning of the Study 05

3.0 Methodology 06
3.1 Research Approach 06
4 3.2 Setting Sample Size & Selection Process 06
3.3 Analysis Technique 06
3.4 Scope 06

5 4.0 Research Contribution 07

6 5.0 Budget 08

7 6.0 Projected Timeline 09

8 7.0 References 10

EXECUTIVE SUMMARY

iii
This is a comprehensive proposal on the principles of uncompensated overtime,
popularly known as ‘Crunching’, in the video-game industry. In this proposal, an
introductory essay is provided first that gives a short overview of the video-game
industry and introduces the issue of Crunching in this research. This essay also briefly
lists the main reasons of Crunching and highlights the primary objectives of this
research. Mainly, crunching emerged as a result of the increased quality of games, and
leading video-game development companies are able to continue this malpractice
because of its legality. This is discussed in detail in the Background part of this
proposal.

In the Literature Review part, the comprehensive findings of previous researches on

Crunching are detailed. Popular video-game development companies like Rockstar,
Epic Games, Telltale etc. have heavily implemented this practice on their developers
and produced renowned games like Grand Theft Auto 5 and Fortnite. So, another
reason Crunching remains a problem is that this practice helps in creating high-quality
games, at the expense of developers’ health. The Literature Review section also
provides the negative effects of Crunching on video-game developers.

The Methodology section details how we worked on the collection of data. The data
collected are solely based on secondary sources and no data from primary sources. We
have relied more on qualitative data, rather than quantitative data for this research, to
provide proper and true results. We have also added a chart to show how we managed
our time in different areas of our research. The limitations we faced on this research,
namely lack of resources, time, busy class schedules and exams resulting in a lack of
thorough information, is also included in this section.

We included the funding necessary for this research in the Budget Section, as well
as a chart detailing the estimated timeline of this research in the Projected Timeline
Section.

iv
 1.0 INTRODUCTION

1.1 Background
The video game industry encompasses the development, marketing, and monetization
of video games. The industry encompasses dozens of job disciplines and thousands of
jobs worldwide.

Video games are a billion-dollar business and have been for many years. In 2020,
the revenue from the worldwide PC gaming market was estimated at almost 37 billion
U.S. dollars, while the mobile gaming market generated an estimated income of over 77
billion U.S. dollars. What is significant nowadays is that the first generation of gamers is
now grown up and has significant spending power at its disposal. Despite the high
average daily time spent playing games among kids, the hobby can no longer be
considered solely child’s play. In fact, it was found that video gaming is gaining
popularity among parents across the world as well, with a fairly even split in terms of the
gender distribution of video gaming parents worldwide.

Overworked and Underpaid Developers

Developers hunched over computers, hastily typing away at a foreign language of code
in a desperate attempt to meet the impending deadline. Empty coffee mugs and pizza
boxes scattered throughout the office. Stress, crying, no escape. The gaming industry is
like this. Game development should be a glorious art. Days, months, more often years
of dedication leading up to the point of release — it’s an immense feat that should
invoke pride in the creators.

Crunch is the practice of overworking developers to unacceptable hours of overtime

without pay. Crunch unnecessarily stresses video game developers and leads to the
sacrifice of free time, actual issues within the games themselves, and ultimately,
workers abandoning the industry to avoid the harrowing experience altogether.

Unpaid overtime would already lead to a lack of motivation, with acute passion and
overbearing managers being the only thing keeping these crunched developers going.
This issue is major and too widespread within the gaming industry.

1
 1.2 Objective of the Study
The purpose of the report is to determine how companies are able to exploit their
workers and not have to face any legal consequences most of the time. Moreover, how
‘Crunch time’ is causing the employees great levels of financial and mental stress.

1. To highlight the growth of video gaming industry nationally and internationally

2. To focus on the dedication of the developers
3. Revealing how the developers are being overworked and underpaid

1.3 Organization of the Proposal

2
The remainder of the proposal is structured as follows: Literature review, methodology,
budget, activity sheet & references.

The Literature Review section provides information on crunching in the video-game

development industry, gathered by previous researches. It has been divided into two
segments: Market Condition and Theoretical Underpinning of the Study. Market
Condition peeks into the condition of the market; in this case, gives a general overview
of companies where crunching is apparent. On the other hand, Theoretical
Underpinning of the Study strengthens the argument by providing the negative effects of
crunching in the video-game industry, as reported by developers.

The Methodology section details the methods that will be used to conduct this
research. It has been divided into several segments where the research approach,
setting the sample sizes and selection process, the analyzing techniques and the
limitations have been discussed. This section also provides proof of the research’s
applicability.

The Budget section details the necessary funding needed and the implementation of
funding in respective areas of the research.

The Project Timeline section provides an estimated timetable for all the actions
associated with this research. This will serve as a guide to help things get accomplished
on schedule.

The References at the very end are used to acknowledge and credit the sources of
secondary data.

2.0 LITERATURE REVIEW

3
Mandatory overtime in the video games industry, or more commonly known as ‘crunch,’
has become a frequent phenomenon in almost every company. It’s a fundamental threat
that could corrode the entire industry from the inside out.

Crunch has endured for so long in the games industry simply because it’s legal. At
both the federal and state level, computer professionals who earn above a set annual
salary, the exact figure varies from state to state, are considered exempt from overtime
laws that would otherwise require studios to pay them extra for extra hours in the office.
This has ensured that whenever problems arise during game development, the easiest
and cheapest solution is to have developers stay late and come in on the weekends.

2.1 Market Condition

In recent times, popular gaming companies like Rockstar Games, Epic Games and
Telltale- all have been accused of unpaid overtime by the employees. Here is a
summary:

Rockstar Games:
During the launch of Red Dead Redemption 2, Rockstar Games drew controversy after
a news leaked that during certain points in the game’s development employees were
having 100-hour work weeks at the studio. In the aftermath of the controversy, a report
based on interviews with current and former Rockstar employees painted a dreary
picture of the studio. Workers reported working an average of between 55 and 60 hours
per week, six days per week, and being pressured to work for as long as possible via
overtime. Workers reported a culture of fear at the studio.

Epic Games:
Fortnite became a larger success than anyone at Epic Games could have possibly
imagined, raking in hundreds of millions of dollars and a substantial share of viewers on
platforms like YouTube and Twitch. Unfortunately, the constant pressure to retain its
crown has reportedly resulted in crunch for its employees. A report said that employees
had worked weeks of between 70 and 100 hours, with the need to constantly patch the
game being at least partially responsible.

Telltale:
4
Telltale has also been reportedly in a state of perpetual crunch according to interviews
with former employees. It got revealed that the studio was constantly responding to
player feedback on episodic projects while planning for what would come next. This
resulted in developers unable to slow down their processes year-round and had to do
countless hours of unpaid labor.

2.2 Theoretical Underpinning of the Study

Over half of game developers claim workplace crunch is "an expected component" of
their jobs, with the majority of developers receiving no overtime compensation for their
work.

According to a 2019 of survey from the International Game Developers Association,

40 percent of game developers reported working crunch time at least once over the
course of the previous year. For the majority of these developers, crunch wasn’t just a
few extra hours or a long weekend, but at least 20 extra hours on top of their standard
40-hour workweek. Just 8 percent said they received extra pay for those hours.
(Gurwin, 2019)

New studies published by mental health awareness advocates question whether

developers are treating their employees fairly in the workplace, suggesting mentally
draining work conditions are contributing to burnout among games workers.

Because of such reports and research works, we believe that our study for the topic
will be relevant to the current world and will provide solutions on how to effectively
eliminate this issue once and for all.

3.0 METHODOLOGY

5
 3.1 Research Approach
The proposal is entirely supported by secondary data that will be gathered from
journals, research papers, and print media. The lack of resources prevents the
collection of primary data. The information gathered is only for qualitative analysis since
the data collection inhibits the scope for a quantitative study.

3.2 Setting Sample Size and Selection Process

Since there will be no subject group and control group for primary data collection, the
sample size is a misnomer if it is used. However, resources will be selected both for and
against the cases and arguments presented in the literature. It is expected that the
study will require a thorough review of existing literature and a ballpark 10 articles from
outside academia for a holistic view on the industry.

3.3 Analysis Technique

The convenient sample for the subject and whether it contributes details to the report’s
major objectives were considered. All of the publications and reports selected for our
proposal's research aim are within the span of last 5 years. This demonstrates how,
given the limited time frame, the data did not change significantly across the years
selected.

3.4 Scope
The study will cover qualitative questions and aim at answering them through qualitative
measures. Since primary data collection is not possible and the nature of the study
prohibits any quantitative analysis due to the competence factor of 1st year students,
rigorous empirical methods will not be used for this study. However, we reason that
valuable insights can be gathered through a qualitative lens.

4.0 RESEARCH CONTRIBUTION

6
The activities of the study are allocated equally among the team. Two members will
perform data collection and entry. After the data collection, one member will curate the
data with due diligence, after which a qualitative analysis will follow where each member
will contribute according to their competence and ability.

Since the study is not empirically rigorous, many conventional research contributions
will be omitted by default. However, the completion of the whole is dependent on the
participation of each member of the team.

5.0 BUDGET

7
 Study on uncompensated overtime in the video game
Project Title: development industry
Patron: Rezwanul Huque Khan, PhD
Duration: 15/11/2022 to 12/12/2022
14/11/202
Date: 2    
Total Budget: BDT 9,000 BDT /-    
         
Line Items       Total
Analysis       BDT
  Period Cost Unit Total
  (days)      
30
Data Analyst 30 100/hour 3,000
hours
Secondary Data 4000 (Statista
N/A N/A 4,000
Collection Subscription)
2000
Secondary Data
30 N/A N/A (Lumpsum
Curation
)
TOTAL 9000

6.0 PROJECTED TIMELINE

8
7.0 REFERENCES

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1. Chung, S. W., & Kwon, H. (2020). Tackling the crunch mode: the rise of an
enterprise union in South Korea's game industry. Employee Relations: The
International Journal.
2. Cote, A. C., & Harris, B. C. (2021a). The cruel optimism of “good crunch”: How
game industry discourses perpetuate unsustainable labor practices.
3. Cote, A. C., & Harris, B. C. (2021b). ‘Weekends became something other people
did’: Understanding and intervening in the habitus of video game crunch.
4. Keogh, B. (2021). The cultural field of video game production in Australia.
5. Politowski, C., Petrillo, F., Ullmann, G. C., & Guéhéneuc, Y. G. (2021). Game
industry problems: An extensive analysis of the gray literature.
6. Campbell, C. (2019). How Fortnite’s success led to months of intense crunch at
Epic Games. Polygon. https://www.polygon.com/2019/4/23/18507750/fortnite-
work-crunch-epic-games
7. Gurwin, G. (2019). Video game companies accused of crunch, and how they
responded. Digital Trends. https://www.digitaltrends.com/gaming/video-game-
companies-accused-of-crunch

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