June 2008

The Entertainment Software Association

FTC "SECRET SHOPPER" FINDINGS SHOW VIDEO GAME RETAILERS LEAD THE ENTERTAINMENT INDUSTRY IN AGE ENFORCEMENT

The video game industry continues to make significant strides in ensuring that Mature-rated games are sold only to age-appropriate purchasers, according to a new survey by the Federal Trade Commission (FTC).

The 2008 survey was the fifth that the FTC undertook since 2000. In each of the surveys, the percentage of underage purchasers allowed to buy M-rated games declined, with a dramatic reduction occurring in the last two years.

In 2000, the FTC found that 85 percent of the undercover shoppers were able to purchase M-rated games. By 2006, the number fell to 42 percent and in this year's survey, the number reduced by more than half, to 20 percent, by far the lowest rate for any entertainment industry sector. In releasing the results of the survey, the FTC called the findings a "major improvement" for the video game industry.

The survey employed undercover 13-to-16-year-olds to determine if retailers follow rating guidelines and age restrictions.  The study by the FTC shows the extent to which retailers prevent unaccompanied children from buying tickets to R-rated movies, R-rated DVDs, M-rated video games and music CDs labeled with a Parental Advisory Label for explicit content. 

The Entertainment Software Rating Board, the non-profit, self-regulatory body established by the Entertainment Software Association to assign age and content ratings for video games released the following statement in response to the survey congratulating video game retailers on a job well done.

"Video game retailers have clearly stepped up their efforts to enforce their store policies, and they deserve recognition for these outstanding results.  We commend and applaud retailers for their strong support of the ESRB ratings, and will continue working with them to help ensure that these levels of compliance are sustained if not further increased," said Patricia Vance, President of the Entertainment Software Rating Board.


VIDEO GAME BOOM BOOSTS STATE ECONOMIES

As today's tight labor market and rising prices continue to wear on consumers nationally, many state governments are looking to the $18 billion entertainment software industry as a means to stimulate their own local economies.

States with the highest video game industry employment like California, Washington, Texas and New York generate millions of dollars of revenue from the successful entertainment software industry.  Ranked fourth nationally, New York's video game industry was recently featured by Newsday in an article that discussed the industry's contributions to the state's economy.  And according to Video Games in the 21st Century: Economic Contributions of the US Entertainment Software Industry, a study released by the Entertainment Software Association in November, New York generated more than $249 million in 2006 from its video game market, and employed more than 4,400 people through publisher and developer groups. 

Other states like Georgia with less established entertainment software infrastructures are now taking steps to promote the development of the industry.  Georgia's Governor Sonny Perdue signed the 2008 Entertainment Industry Investment Act, which offers tax breaks and other incentives to producers of video games, as well as movies, television shows and commercials.

The initiative offers new, more competitive incentives to replace old ones, offering a 20 percent tax credit for qualified productions, which are then eligible for an additional 10 percent tax credit if they include an animated Georgia promotional logo within the finished product.

With the entertainment software industry posting $9.5 billion in sales during 2007, more states are becoming actively involved with the development and growth of this industry.  In fact, Texas Governor Rick Perry will keynote the Entertainment Software Association's E3 Media & Business Summit to discuss the industry's contributions to the Texas economy, and how other states can replicate that success for their own economies.


GAMES FOR HEALTH CONFERENCE

Last month, the Games for Health Project held its fourth annual national conference at the Baltimore Convention Center.  The event featured 60 presentations by 75 speakers on next-generation game technologies in health and drew about 300 attendees. The conference focused on topic areas such as exergaming, video games for rehabilitation and the rise of video games for first responders and other medical professionals. 

For the first time ever, a major U.S. health care insurance company, Humana, was the primary sponsor of the Games for Health Conference. According to the Games for Health Project, the sponsorship reflects the medical community's increasing interest in the potential of games. Representatives from Humana held a planning meeting in conjunction with the conference to discuss current and future efforts to further the use of games and games technology to help solve critical health problems.

From Parkinson's disease to pain control, video games can play a significant role in assisting a patient's recovery and treatment.  Red Hill Studios presented its research on the use of a game called "PDWii" ("PD" for Parkinson's disease and Wii for Nintendo's Wii) to aid balance and mobility in patients. Developed by Red Hill Studios and the University of California at San Francisco's School of Nursing with funding provided by the National Institutes for Health, the game is integrated into the patient's overall health care regime and uses quantifiable results to track a patient progress.

As games continue to grow as a source of exercise, several of the conference presentations explored how exergames can further evolve. One presentation focused on "Zyked" a game that applies the principles behind games to everyday workouts and mobile devices.  By adding gameplay and community features, the game aims to make sports and exercising more fun.  Another featured Dr. Alasdair Thin of Heriot-Watt University, who outlined his thoughts about how exergame design should work to ensure maximum health benefits in a session entitled "Go for the Burn: Designing Body-Movement Controlled Video Games to Maximise Energy Expenditure".

The conference also highlighted games that assist in training first responders and medical professionals.  For example, 3DiTeams, presented its game "Virtual Heroes" which trains first responders by forcing them to make quick decisions in simulated crisis.  3DiTeams partnered with the U.S. Army Telemedicine and Advanced Technology Research Center and Duke University's Human Simulation and Patient Safety Center to develop the game that allows players to interact with three dimensional simulations of a variety of emergency health situations.

In the News

Latest News Release

Quote of the Month

"This new incentive allows Georgia to once again compete for an industry we used to be famous for.  It will be a catalyst that will spur immediate economic investment and create jobs. Georgia will once again be on center stage where it belongs."

Georgia State Senator Mitch Seabaugh, in a statement regarding Georgia's 2008 Entertainment Industry Investment Act.

Statistic of the Month

When the FTC began its undercover surveys in 2000, more than four in five underage purchasers could buy M-rated games. In a complete reversal, this year, four out of five purchasers could not buy such games.

 Did You KNOW??

K.I.C.K. (Kid's Interactive Creation Kiosk), a touch screen system and software activity package featured at the Games For Health Conference, aims to lower stress for children visiting hospital and emergency waiting rooms.

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