August 2008

The Entertainment Software Association

E3 MEDIA & BUSINESS SUMMIT

The Entertainment Software Association held its annual E3 Media & Business Summit July 14-17 at the Los Angeles Convention Center.  More than 4,000 industry leaders, business executives and journalists attended the event. 

Texas Governor Rick Perry delivered the event's keynote address, encouraging game developers to move to the Lone Star State.  Governor Perry's appearance demonstrates the growing acceptance of the relevance and importance of the industry in the American culture and economy. The industry's unique ability to grow and contribute to state and local economies has strengthened relationships as elected officials work to bring this thriving industry to their home states.

"The Governor's keynote address is especially timely given the high concentration of entertainment software developers and publishers in Texas as well as the state's long-standing support of our industry," said Michael Gallagher, CEO of the Entertainment Software Association.  "The Governor's forward-thinking leadership in encouraging the growth and development of our $18 billion industry is a roadmap for other state executives who want to transform their state economies for the 21st century."

Gallagher delivered the State of the Industry Address at E3, highlighting the growth and prosperous future of the industry.  In his remarks, he challenged members of the industry with five key initiatives to feed the industry's momentum:

  • REMEMBER THE BASE – Avid gamers have been with the industry from the start. The industry needs to continue producing engaging, compelling games that traditional consumers expect, but it must also look for new ways to use technology to keep the base engaged for years to come.
  • WELCOME NEW GAMERS – The industry needs to welcome recent gaming converts. To continue to draw these casual players in, the industry needs to continue expanding and provide new gamers with innovative and appealing game choices.
  • BROADEN THE USES OF GAMES – Video games are increasingly used for more than just entertainment purposes.  New commercial aspects of the industry will continue to thrive as the generation that grew up with computer and video games naturally incorporates the entertainment and educational aspects of games into their lives.
  • HELP PARENTS – The industry must look for innovative ways to help caregivers ensure that the games their children play are parent-approved. We already have made remarkable strides over the past few years with the Entertainment Software Rating Board.  For example, research by the FTC shows that 80 percent of children cannot purchase Mature-rated games.
  • UNITE POLICY INTERESTS – Texas is a leading state in recognizing the industry's contributions.  And there are a number of others, including Georgia and Wisconsin, who have seen the industry's transformation and are helping us grow through economic incentives.  The ESA has been working effectively with those states, and we will continue to do so.

To view a copy of Mr. Gallagher's remarks, please visit: http://www.theesa.com/newsroom/soi_2008.asp.


THE ESA's ESSENTIAL FACTS STUDY SHOWS WOMEN COMPRISE 40 PERCENT OF U.S. GAMERS

At the E3 Media & Business Summit, ESA released its Essential Facts About the Computer and Video Game Industry, an annual publication detailing the demographics and usage behaviors of computer and video game consumers and buyers.  The publication illustrates that there is no longer a stereotypical gamer, instead with deeper market penetration and the broadening of our audience base, video games have incorporated themselves into America's cultural and social fabric.

This year's Essential Facts shows that 40 percent of gamers are women and that the average age of game players has risen to 35.  Among the survey's other notable findings:

  • 65 percent of American households play computer and video games;
  • 38 percent of American homes have a video game console;
  • The average game player is 35 years old;
  • One out of four gamers is over age 50; and,
  • Women age 18 or older represent a significantly greater portion of the game-playing population (33 percent) than boys age 17 or younger (18 percent).

The new research also details how involved parents are in the way their children buy, rent and play games:

  • 94 percent of parents are present when games are purchased or rented;
  • 88 percent of parents report always or sometimes monitoring the games their children play; and,
  • 63 percent of parents believe games are a positive part of their children's lives.

The 2008 Essential Facts also includes statistics on the top selling titles and genres of 2007, provided by The NPD Group. Based on unit sales, 85 percent of the games sold last year were rated "Everyone (E)," "Everyone 10+ (E10+)" or "Teen (T)."  Only 15 percent of the games sold in 2007 were rated "Mature (M)."

The data included in this year's report was gathered in an annual study conducted by Ipsos MediaCT for the ESA. The study is the most in-depth and targeted of its kind, gathering data from over 1,200 nationally representative households that have been identified as owning either or both a video game console or personal computer used to run entertainment software. The complete 2008 Essential Facts booklet is available online at http://www.theESA.com.


ESA EXTENDS YOUTH INTERNET SAFETY PROGRAM TO 75 FLORIDA SCHOOLS

On July 24, the Entertainment Software Association and Web Wise Kids, in partnership with Florida Lieutenant Governor Jeff Kottkamp and the Florida Department of Education, launched an initiative that will supply 75 Florida middle schools with an innovative youth Internet safety program.

The program, which begins this fall, includes a package of three custom video games – "Missing," "Mirror Image," and "Air Dogs" – that teach students how to be safe and responsible online.  "Missing" is a detective-style game that challenges students to find a boy named "Zack" who spent hours in chat rooms and then disappeared. "Mirror Image" draws attention to modeling scams, online romances, cyber stalking, chat rooms and Trojan horses.  "Air Dogs," meanwhile, addresses issues such as cyber crimes, piracy, illegal downloading and intellectual property rights.

At the donation announcement in Tampa, Florida's Lt. Gov. Kottkamp, ESA CEO Michael D. Gallagher, Web Wise Kids President Judi Westberg Warren, and the state's Department of Education Deputy Chancellor Pam Stewart discussed the need to prepare parents and children to recognize and deal with online predators and other potentially harmful situations that children often encounter online.

The ESA began working in 2001 with Web Wise Kids, a non-profit organization dedicated to promoting child Internet safety.  Their collaboration includes working with school administrators and elected officials across the country to inform parents and children about the potential dangers associated with the Internet.


ROBERT WOOD JOHNSON FOUNDATION EXPLORES BENEFITS OF GAMES

In 2007, the Robert Wood Johnson Foundation established the Health Games Research Program to further the use of video games in health.  The Foundation recently awarded the program's first round of grants, distributing more than $2 million to 12 research teams at institutions across the nation, including the University of North Carolina at Chapel Hill and Maine Medical Center.

The Robert Wood Johnson Foundation awarded each institution with up to $200,000 to conduct one to two-year studies that will seek to answer a variety of health questions.  The teams will all help to "strengthen the evidence base that supports the development and use of digital interactive games to improve players' health behaviors and outcomes" by examining issues such as:

  • How strategies of persuasion in a game can promote healthy behaviors in daily life (Cornell University);
  • How the social interactions that take place during game play may influence health behavior change (University of California at San Diego);
  • How players' levels of engagement in the game may influence their motivation to carry out a visual attention training program (University of Florida);
  • How competitive and collaborative game versions compare, particularly as they relate to promoting physical activity and healthy lifestyles among college freshmen (Indiana University); and,
  • Whether physical activity video games can serve as innovative, cost-effective ways to help people recover motor skills after experiencing a stroke (University of South Carolina)

Robert Wood Johnson's Health Games Research is an $8.25 million program under the direction of the University of California at Santa Barbara communication researcher Debra Lieberman.  The effort distributes grants for original game designs that require physical activity or promote healthy habits.  As the country's largest philanthropy devoted exclusively to health and health care, the program combines researchers, medical professionals, and game developers to share information about the impact games and game technologies can have on health care and policy.

The Health Games Research Program will accept proposals for a second round of funding in January 2009.  For more information, please visit http://www.healthgamesresearch.org.

In the News

Latest News Releases

Quote of the Month

"Considering our state's economy grew at a rate more than double the national average, it is clear the computer and video game industry is on fire. Texas now ranks third nationally in computer and video game employment, just behind California and Washington. Austin alone boasts more than 60 gaming companies, employing over 2,800 individuals and contributing almost $195 million annually to the local economy, according to a study by Texas Perspectives, Inc."

The Honorable Rick Perry, Governor of Texas

Statistic of the Month

According to the ESA's 2008 Essential Facts About the Computer and Video Game Industry, 41 percent of Americans expect to purchase one or more games this year.

 Did You KNOW??

With the start of the 2008 Olympic games only a few short weeks away, Michigan State University professor Yong Zhao created an online video game that will help you brush up on Chinese culture and language.  Zon/New Chengo is a Web-based role-playing game for players of all ages, and aims to educate people about China.

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Entertainment Software Association
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For members of the media only, please contact Dan Hewitt.