I am doing some research into the game industry and came across the following article on a relatively new methodology for game development called Agile. Scrum is a more specific implementation of the Agile method:
Traditional game development uses a production methodology that spends a lot of front-end time, defining intended functionality, often with implementation of important elements such as mechanics and levels waiting around until the mad scramble at the end. The traditional methodology, often called Waterfall, isn’t dissimilar to an assembly line, with the beginning of the line starting the process of piecing together the product while the end of the line waits to add polish.Agile puts the emphasis on producing demonstrable iterations of a game almost immediately into production, creating prioritized vertical slices that iterate on the most critical elements and features. The method also puts great emphasis on the organization of teams and the relationships therein, as well as the cycles in which teams must plan and carry out their project objectives.
Scrum breaks down production into short work cycles called Sprints. At the beginning of each Sprint, the entire project team meets to create objectives and self-organize into small Scrum teams. The Scrum teams are interdisciplinary, with artists working alongside designers working alongside programmers.
Full text may be found here:
http://gamasutra.com/features/20060628/mcguire_01.shtml