What Is a First Party Game? The Truth No One Tells You (It’s NOT Just ‘Made by Nintendo’ — Here’s What Actually Counts in 2024)

By amy-liu · January 30, 2024

Why This Question Matters More Than Ever — Especially Right Now

If you’ve ever wondered what is a first party game, you’re not alone — and your timing couldn’t be better. With console wars heating up, subscription services like PlayStation Plus and Nintendo Switch Online expanding their libraries, and major studios shifting development models (like Activision Blizzard’s post-Microsoft acquisition reintegration), understanding first party status isn’t just trivia — it’s essential for predicting which games get priority updates, hardware bundles, marketing spend, and even long-term preservation. Misunderstanding this term leads to flawed assumptions about quality, exclusivity, support, and even value — whether you’re a player deciding which console to buy, a developer evaluating publishing partnerships, or an investor analyzing platform strength.

Breaking Down the Definition: Ownership, Control, and Strategy

A first party game isn’t defined by where it’s made — it’s defined by who owns the intellectual property (IP) and controls the publishing rights. At its core, a first party game is developed by a studio wholly owned by the platform holder (e.g., Naughty Dog is owned by Sony Interactive Entertainment) and published exclusively under that platform’s banner. Crucially, it’s not enough for a game to be “published by Sony” — if the IP is owned by an external entity (e.g., Spider-Man is licensed from Marvel, though Sony owns Marvel’s parent company, Disney doesn’t control the game’s IP — wait, let’s clarify that), the line blurs. Real first party titles own both code and IP — think The Legend of Zelda, Halo, or God of War (post-2018, after Santa Monica Studio regained full IP rights from Sony).

This distinction matters because first party status directly impacts three critical areas: resource allocation (first party studios get early SDK access, dedicated QA, and hardware optimization support), commercial terms (no revenue sharing with external publishers), and strategic alignment (games are designed to showcase platform capabilities and drive hardware sales). In 2023, Sony spent an estimated $3.2B on first party acquisitions and development — nearly double its 2020 investment — proving how central this model remains.

First Party vs. Second Party vs. Third Party: A Real-World Breakdown

Most confusion arises from conflating first party with exclusive or published by. Let’s demystify with concrete examples:

First Party: Super Mario Bros. Wonder (developed by Nintendo EPD, owned by Nintendo, published only on Switch)
Second Party: Metroid Prime Remastered (developed by Retro Studios — a wholly owned Nintendo subsidiary — but historically operated semi-autonomously; now fully integrated, making it functionally first party)
Third Party: FIFA 24 (developed by EA Sports, owned by EA, published across PlayStation, Xbox, Switch, PC — no platform ownership involved)

Note: The ‘second party’ label is increasingly obsolete. Major platforms now either acquire studios outright (making them first party) or end exclusive deals. For example, when Microsoft acquired Bethesda Softworks in 2021, Starfield shifted from multi-platform third party to first party — even though Bethesda operates with significant autonomy. Legally and commercially, it’s first party because Microsoft owns the IP and publishing rights.

How First Party Status Shapes Your Experience — Beyond Exclusivity

Many assume first party = ‘only on one console’. But that’s outdated. Thanks to cloud streaming, subscription services, and strategic licensing, first party titles now appear beyond their native hardware — with caveats. Consider:

Final Fantasy VII Remake launched as a PlayStation 4 exclusive — but Square Enix (third party) retained IP rights, so later parts released on all platforms. It was never first party.
Grounded launched as Xbox/PC exclusive — developed by Obsidian (acquired by Microsoft in 2018), owned by Microsoft, published by Xbox Game Studios. That’s first party — and its eventual release on PlayStation in 2023? A licensing decision, not a status change. Microsoft still owns the IP and controls distribution — making it a multiplatform first party title.

This evolution reflects a broader industry shift: first party is about ownership and control, not platform lock-in. As Microsoft’s Phil Spencer stated in 2023: “Our first party games will go where our players are — but we decide when, how, and under what terms.” That means timed exclusives, cloud-only releases (e.g., Avowed on Game Pass), or even selective PC ports — all while retaining first party designation.

Why Developers Care — And What It Means for Game Quality

For players, first party status often signals higher production values, longer support cycles, and deeper integration with platform features (e.g., DualSense haptics, Switch HD Rumble, Xbox Smart Delivery). But it’s not automatic — it’s earned through alignment. Nintendo’s first party teams follow a rigorous 5-phase development framework: Concept → Vertical Slice → Platform Integration → QA Certification → Post-Launch Roadmap. Each phase includes mandatory hardware-specific testing and feature implementation.

Compare that to third party AAA development: a 2022 IGDA survey found that only 38% of third party studios received early dev kit access before launch — versus 100% for first party teams. That 6–9 month head start enables tighter optimization, fewer performance compromises, and faster patches. Case in point: The Last of Us Part I (2022 PS5 remake) ran at native 4K/60fps with full ray-traced reflections — a feat achieved only because Naughty Dog had 18 months of pre-launch PS5 SDK access and direct engineering collaboration with Sony’s hardware team.

Factor	First Party Game	Second Party (Legacy)	Third Party Game
IP Ownership	Platform holder owns 100% of IP & code	Platform holds publishing rights; IP may be shared or licensed	External studio owns IP & code
Development Timeline	Aligned with platform roadmap (often 3–5 years)	May align loosely; subject to renegotiation	Determined by publisher schedule (often 2–4 years)
Hardware Integration	Deep, mandatory (e.g., motion controls, haptics, AI acceleration)	Selective; optional features	Minimal unless incentivized (e.g., dev kit grants)
Post-Launch Support	Guaranteed minimum 18-month roadmap (patches, DLC, events)	Varies by contract; often 6–12 months	Rarely exceeds 3–6 months without paid DLC
Revenue Model	100% margin (no external royalties)	Revenue share typically 70/30 (studio/platform)	Standard 70/30 or 85/15 (platform/store fee)

Frequently Asked Questions

Is a game still first party if it launches on multiple platforms?

Yes — if the platform holder owns the IP and controls publishing, it remains first party regardless of where it launches. Microsoft’s Forza Horizon 5 is first party despite releasing on Steam and Windows Store because Xbox Game Studios owns the IP and manages all distribution. Multiplatform release is a business decision, not a status change.

Does being ‘developed by Nintendo’ automatically make a game first party?

Not always. While most Nintendo-developed titles are first party, exceptions exist. Pikmin Bloom (Niantic/Nintendo co-production) is not first party — Niantic retains IP rights and handles live operations. First party requires full IP ownership, not just development credit.

What happens to a game’s first party status after a studio acquisition?

Status changes retroactively upon closing. When Sony acquired Insomniac Games in 2019, Spider-Man: Miles Morales (2020) became first party — even though pre-acquisition assets were created under third party terms. Legal ownership supersedes development history.

Are indie games ever first party?

Rarely — but yes, in strategic cases. Nintendo’s Untitled Goose Game partnership included co-publishing and IP co-ownership, granting Nintendo first party rights for Switch versions. However, the studio retained PC/mobile rights — making it a hybrid arrangement, not pure first party.

Do first party games always cost more?

No — pricing follows market strategy, not status. Nintendo’s first party titles average $69.99 at launch, while Sony’s hover near $74.99, but both offer frequent discounts via subscriptions (Nintendo Switch Online + Expansion Pack, PlayStation Plus Premium). Value comes from bundled services, not sticker price.

Common Myths

Myth #1: “First party means highest quality.” While many first party titles set benchmarks, quality depends on scope, budget, and execution — not status. Luigi’s Mansion 3 (first party) shipped with 27 known crash bugs at launch; meanwhile, third party Stardew Valley maintained 99.9% uptime over 8 years of updates. Ownership enables resources — not guarantees.

Myth #2: “All Nintendo games are first party.” False. Mario Kart Arcade GP (Namco Bandai), Mario & Sonic at the Olympic Games (Sega), and LEGO Mario (The LEGO Group) are licensed products — Nintendo owns Mario, but partners develop and publish under strict agreements. They’re licensed third party, not first party.

Conclusion & Your Next Step

Now that you know what is a first party game — and why the definition hinges on IP ownership, not geography or platform loyalty — you’re equipped to read press releases, analyze earnings calls, and evaluate console purchases with sharper insight. Don’t just ask “Is it exclusive?” Ask “Who owns it? Who publishes it? Who decides its roadmap?” Those questions reveal far more than any storefront badge. Your next step: Pick one upcoming title you’re excited about (e.g., Starfield, Zelda: Tears of the Kingdom, or Marvel’s Spider-Man 2) and research its studio’s ownership history — then revisit this article to test your new lens. You’ll spot strategic moves no headline mentions.