Why are video games licensed?
"Licensed" means two different things in video games. A licensed game uses someone else's intellectual property — a movie, comic, sports league or real car — and the developer must pay for the right to use it. And every game you buy is itself licensed to you: you get the right to play it under the publisher's terms, not ownership of the software.
Licensed games (using other brands)
- Why studios do it: a famous name like Marvel, Star Wars or the NBA brings built-in fans and marketing.
- What it requires: a contract with the rights holder, payments or royalties and approval of how the brand is used.
- Sports games: league, team and player names and likenesses are licensed. When EA's FIFA license ended in 2023, the series continued as EA Sports FC.
- Cars, music and real weapons: racing games license car models, and soundtracks need music licenses. When licenses expire, games may be delisted or lose songs.
- Quality: older movie tie-ins were often rushed to meet a film's release date, but games like Batman: Arkham Asylum and Marvel's Spider-Man showed licensed games can be excellent.
You buy a license, not the game
When you buy a game, you accept an end-user license agreement (EULA). It typically:
- lets you play, but not copy, resell (for digital games) or modify the game beyond what is allowed;
- allows the publisher to change or shut down online features;
- can restrict account sharing.
This is why a digital game can disappear from a store and why some online games stop working when servers close.
FAQ
How does game licensing work?
The developer or publisher negotiates a contract with the rights holder for a set period, platforms and fee, usually with brand approval rights.
What does Open Game License mean?
It is a license from Wizards of the Coast that lets creators use parts of the Dungeons & Dragons rules in their own tabletop products.
Why are some licensed games removed from stores?
When the license for a brand, music or car models expires, the publisher often has to stop selling the game.
Is GTA 5 an open-world game?
Yes. Grand Theft Auto V is an open-world action game set in the fictional state of San Andreas.