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Economic Data

Entertainment software is one of the fastest growing industries in the U.S. economy. The industry is creating jobs and producing revenue for communities across the nation.  In addition, the industry posted record sales in 2007 as video games continue to grow as an entertainment medium. 

Economic Impact

Video Games in the 21st Century: Economic Contributions of the U.S. Entertainment Software Industry is the first study that quantifies in detail the specific contributions of the U.S. entertainment software industry to the nation's economy.  It was conducted by Economists Incorporated and released by the ESA in November 2007.  The study found:

• Growth – From 2003 to 2006, the entertainment software industry's annual growth rate exceeded 17 percent.  Over the same period, the entire U.S. economy grew at a less than four percent rate.

• GDP – In 2006, the entertainment software industry's value added to U.S. Gross Domestic Product (GDP) was $3.8 billion.  The industry also makes a disproportionate contribution to the real growth of the nation as whole.  For example, in 2005-06 the industry's contribution to real growth exceeded its share of GDP by more than four to one.

• Employment – The entertainment software industry also continues to grow as a source of employment.  For the four-year period 2002-06, direct employment for the industry grew at an annual rate of 4.4 percent.  Currently, computer and video game companies directly and indirectly employ more than 80,000 people in 31 states.  By 2009, it is projected that the industry will support over a quarter of a million American jobs.  The average salary for direct employees is $92,300, resulting in total national compensation of $2.2 billion. 

The report also shows that the entertainment software industry provides benefits to individual state economies. 

• Top 5 States – California, Washington, Texas, New York and Massachusetts currently have the highest concentration of video game jobs.  Collectively, these areas directly employ 16,604 workers and post 70 percent of the industry's total indirect employment.

• California – California is the largest employer of computer and video game personnel in the nation, accounting for approximately 40 percent of total industry employment nationwide. These companies provided over $1.8 million in direct and indirect compensation to Californians last year. California's computer and video game industry grew by 12.3 percent last year, nearly three times faster than the state's overall growth and added $1.7 billion to the state economy.

• Other States – New Jersey witnessed a boom in industry growth in recent years as computer and video game companies have expanded beyond New York City.  Virginia's entertainment software industry, meanwhile, grew by 552 percent in 2006, with computer and video game companies adding $28.7 million to the Commonwealth's economy.

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