Using independent sources and anonymous feedback from game industry professionals, Game Developer takes six key measures into consideration: revenue, number of title releases, average game review score, quality of producers, reliability of milestone payments, and the quality of staff pay and perks.

For the fourth consecutive year, veteran Redwood City-headquartered publisher EA has held its position at first place, in the face of legal fees from last year's labor practice issues, and a fourth quarter 2006 earnings loss. EA has continued to deliver the highest number of releases, and has generated the highest revenue of any publisher. The games giant also received positive feedback ratings from developers, signaling significant improvements in the company's human resources dealings.

Nintendo continued its climb up the rankings ladder, moving into the No. 2 slot, just behind EA. Nintendo benefited from a significant boost in the number of games released, including several million-unit sellers such as Nintendogs and New Super Mario Bros. The Japanese publisher also snatched the highest scores for milestone payments and producers this year, helping propel the company ahead of Activision and Microsoft.

"This year's Top 20 Publishers Report shows the continually changing nature of the video game business," Simon Carless, Editorial Director, Game Developer magazine, said. "It's great to see how the console transition is impacting the publisher market in a multitude of interesting ways, and I congratulate all the companies who placed this year."

Highlights from the report include:

1. Activision fell from No. 2 to No. 3, being surpassed by Nintendo. The publisher's hit franchises Call of Duty and Tony Hawk continued to perform well and highly-reviewed games helped secure the company in the top three, but a decrease in the number of titles released over the past 12 months impacted their overall position
2. Bolstered by the mega-hit Grand Theft Auto, Take-Two Interactive clawed its way to No. 5 in the rankings, up five positions from the 2005 results. Healthy sales of the co-published The Elder Scrolls IV: Oblivion and the fading legal threats and controversy that have dogged the company in the past didn't hurt the publisher's rise either
3. Microsoft dropped down the rankings, coming in at No. 6. Just two years ago the Redmond, WA-based software giant was flying high at No. 2. The company has endured a transition phase, preparing new titles for the Xbox 360, which will be reflected in the company's standing next year
4. Buena Vista Games, the game publishing arm of entertainment giant Disney, made its first appearance in the Top 20 Publishers thanks largely to the success of Kingdom Hearts II, which has sold more than one million copies. The publisher has beefed up its internal development capabilities and has the hit-franchise Chronicles of Narnia in its stable of games

The full 2006 Top 20 Publishers guide, including in-depth statistics and analysis is available in the October 2006 edition of Game Developer magazine. The issue is available on most major newsstands and bookstores through November 14, 2006.