THE VIDEO GAME INDUSTRY'S TRANSFORMATION
In an address at the 2008 D.I.C.E. (Design, Innovate, Communicate, Entertain) Summit in Las Vegas, Entertainment Software Association CEO Michael Gallagher highlighted the growth of the video game industry, which has moved from a niche market to mainstream entertainment form with universal appeal on the horizon. "It may be an exaggeration today to say that everyone's a gamer," Gallagher said. "However, the way things are going, it may not be much of an exaggeration tomorrow."
Underscoring Mr. Gallagher's D.I.C.E. speech and the rising recognition of the industry's mass appeal, financial success, and artistic development was national media attention last month from The New York Times, The Washington Post, The Wall Street Journal, Vanity Fair, and Forbes.com.
Noting the "sea change" that is occurring within the industry, The New York Times explained how the list of top-selling console games in 2007 reflects the trend away from isolated, single-player experiences to social, multi-player activities. The Washington Post highlighted the increase in casual gamers and how that has prompted game publishers to experiment with unusual software titles that defy traditional industry standards. Forbes.com pointed to simpler game play and more innovative product designs as signs that the video game industry, from gamer demographics to multiplayer online play, will continue to become more accessible to mainstream fans.
The Wall Street Journal and Vanity Fair focused in particular on the impact video games are having on the broader entertainment industry. The Wall Street Journal detailed the ways in which the video game industry's recent growth is encouraging traditional media companies to re-launch internal gaming divisions instead of outsourcing development. Vanity Fair cited the new opportunities for writers, designers, animators and artists being created by the industry.
Still, Gallagher has not rested on the accomplishments noted in these articles. He challenged the industry to accelerate and expand growth by attracting new players, expanding product lines, and creating new business partners. "I believe that by working together and closing the gaps in our industry," he summarized, "we can realize the full potential of computer and video games to help Americans lead happier, healthier, more productive lives."
ESA FORMS INTERNATIONAL PARTNERSHIPS TO COMBAT PIRACY
Computer and video games, like other entertainment media, are often targets for piracy. To combat this problem, the ESA has partnered with organizations around the world to strengthen U.S. intellectual property laws both at home and overseas.
The ESA and the Motion Picture Association, in partnership with the Malaysian Ministry of Domestic Trade and Consumer Affairs (MDTCA), announced in October 2007 plans to jointly combat game piracy in Malaysia. Less than three weeks later, 20 MDTCA officers raided the Southeast Asian country's largest optical disc burning laboratory, located in suburban Kuala Lumpur. They arrested four individuals and seized 340 optical disk burners. Not only did the bust mark the ministry's largest in 2007, it also shuttered an operation that maintained the capacity to produce 18 million pirated discs per year. The raids, conducted under the enforcement initiative entitled "Operation Games Attack," have continued into 2008, highlighted last month by a raid in Johor Bahru, which resulted in the arrests of seven individuals and confiscation of 110,000 pirated video games and 46 burners.
A similar ESA anti-piracy program in Paraguay also recently paid dividends. In February, the country's Specialized Technical Unit and the Intellectual Property Rights Prosecutor, with the assistance of customs authorities, seized 27 suitcases containing over 50,000 pirated game software discs. The suitcases, which belonged to Ali Hani Zeineddine, arrived at the Silvio Pettirossi International Airport in Asuncion, Paraguay, on a flight from Dubai. Paraguayan agents arrested Zeineddine, charging him with criminal copyright and trademark infringement.
Meanwhile, the ESA took action in the halls of the U.S. government, reporting in the International Intellectual Property Alliance's Special 301 Report that increases in online piracy are threatening the industry's growth. The report, which serves to identify several types of commercial piracy for government officials, highlights persistent problems in countries such as Canada, China, Malaysia and Russia, as well as in parts of Europe.
The ESA recognizes the importance of working with other organizations to curtail piracy and defend intellectual property rights. Law enforcement and policy initiatives each play a vital role in ensuring that the computer and video game industry continues to receive the protections that enable it to develop innovative products.
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FAMILY ENTERTAINMENT VIDEO GAME SALES MORE THAN DOUBLE IN 2007
Video games are a source of family entertainment, with parents, children and grandparents all vying for the controls. Today, parents view video games as a positive way to interact with their children. Sales data released last month by the NPD Group reflect as much, with sales of family entertainment video games in 2007 more than doubling. The segment's 110 percent growth rate last year earned it the distinction of being the fastest growing segment in the video game market.
"As a member of the entertainment software industry, I am thrilled at the record-breaking sales of 2007 and as a parent I am particularly happy to see the dramatic growth in the family genre," said Michael D. Gallagher, CEO of the Entertainment Software Association. "These new statistics and our industry's continuing efforts to help parents make informed decisions about games mean that more families are enjoying appropriate, entertaining and engaging games."
With the generation that grew up playing the Atari now of adult age, the new data makes sense. These men and women not only continue to play video games, but their kids and parents also are taking part in the fun. The introduction of new consoles and games such as "Guitar Hero" broaden the identity of a ‘gamer' to now embrace every demographic, from grandparents to toddlers.
"There are more age-appropriate games for children and youth than ever," remarked Dr. David Walsh, president, National Institute on Media and the Family, "so parents have alternatives to the M-rated video games that kids might want to play. Parents can follow the ratings and make sure that M-rated games stay in the hands of adults, not kids."
While Mature-rated games account for only 15 percent of the games sold in 2007, "Early Childhood (EC)," "Everyone (E)," or "Everyone 10+ (E10+)" comprised 56.6 percent of the $9.5 billion in game sales. Family games amounted to 17.2 percent of all games sold in 2007 – more than one of every six games sold – up from 9.1 percent in 2006.
The growth of these games reinforces research demonstrating that parents and children are now spending more time enjoying games together. According to the ESA's 2007 Consumer Survey, 49 percent of parents say they play computer and video games with their children at least once a month and 66 percent feel that playing games has brought their families closer together.
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Quote of the Month
"This [the sales data for family entertainment video games] underlines our message to parents. There are more age-appropriate games for children and youth than ever, so parents have alternatives to the M-rated video games that kids might want to play. Parents can follow the ratings and make sure that M-rated games stay in the hands of adults, not kids."
— Dr. David Walsh, president, National Institute on Media and the Family
Statistic of the Month
With ESA's support, the Malaysian Ministry of Domestic Trade and Consumer Affairs last month seized 48 DVD-R burners, which can duplicate approximately 2.4 million pirated computer and video games each year.
Did You KNOW??
The Writers Guild of America bestowed the inaugural Video Game Writing Award on February 9, 2008. Vicious Cycle Software's "Dead Head Fred" claimed the honor, which aims to recognize video game writers and encourage storytelling excellence in video games.
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