Okay.
Suppose you're running a business that imports bananas from Brazil to sell them in France. The buy price in Brazil is 10 bucks a bushel, and the sell price in France is 100 bucks a bushel. Your operating costs are 5 bucks a bushel. So you're making a cool 85 bucks profit for every bushel of bananas that you import.
Now, because you're selling them in France, you're taxed on the profits there. France, being a sensible European country, levies a 35% tax on your profits. You, being a greedy capitalist, would rather not pay those taxes. So what to do, what to do?
Here's what: you set up a subsidiary in the Cayman Islands, and another in France. The subsidiary buys the bananas at 10 bucks a bushel, and, this is the important bit, sells them to the other subsidiary in France at 99 bucks a bushel. Then the French subsidiary will sell them on at the market price, viz. 100 bucks a bushel, and since it coincidentally has operating expenses amounting to one buck a bushel, shows no profits on its books at all. No profits, no taxes. The Cayman Islands subsidiary, OTOH, shows an 84 buck-a-bushel profit, and since the corporate taxes there are a big fat zero, that's what you end up paying. All entirely legal and above-board.
A game studio could do the same by transferring the IPRs to a subsidiary in a tax haven, and then charging the main company for use of those IPRs, so that the main company shows zero profit. Again, no profit, no tax, and the owners of the tax haven subsidiary get to do whatever they like with the money that flows there.
In the meantime, roads still need to be maintained, schools staffed, fire departments run, and the taxes come off the back of the people with no such possibilities, viz. people working on a salary.
Ain't late capitalism grand?
(And NO this isn't theoretical -- this is exactly why, say, Apple funnels most of its business through a subsidiary in Ireland, which is an EU tax haven. It's not even possible to estimate just how much tax revenue is lost through these loopholes but it's in the trillions annually for the EU alone -- and explains why stuff like income and value-added tax keeps on rising. They can't run away, see.)