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November 2010

The Entertainment Software Association

ESA TO PRESENT ORAL ARGUMENTS BEFORE U.S. SUPREME COURT

On Tuesday, November 2, the Entertainment Software Association (ESA) and the state of California will meet before the U.S. Supreme Court to present their opposing arguments in the case of Schwarzenegger v. EMA/ESA. The ESA will argue that a 2005 California statute seeking to regulate the sale and rental of computer and video games is unconstitutional, and lower court rulings striking down the law should be upheld. To learn more about this important First Amendment case, please visit http://www.theesa.com/policy/scotus.asp.


BUILDING A BETTER BRAIN THROUGH VIDEO GAMES

Building a better brain through video games.Two new scientific studies find video games can train players' brains to function in a more efficient way, enhancing hand-eye coordination and decision-making skills in ways that carry over to their everyday lives.

One of the studies, conducted by the Centre for Vision Research at York University in Toronto, suggests that extensive video game play can increase the efficiency of an individual's brain network, preparing them for complex hand-eye coordination tasks that are distinct from actual video game play. The study compared men in their twenties who had played at least four hours of video games a week for the past three years to men who had not. Participants had to complete increasingly difficult visuomotor tasks, including using a joystick and looking one way while reaching in a different direction, while sitting inside a functional magnetic resonance imaging machine that scanned brain activity.

The researchers found that less-experienced gamers relied mostly on the parietal cortex, the brain area typically involved in hand-eye coordination, while more-experienced gamers showed increased activity in the prefrontal cortex at the front of the brain, an area normally involved in higher-level decision making. This data suggests that the basic cortical network for processing visually guided reaching is altered by video game play, creating a more efficient brain network.

Additionally, a study recently conducted by researchers at the University of Rochester in New York found that action video games can improve an individual's ability to accurately make quick decisions by enhancing their brain's ability to process sensory information. The study compared young men who had played video games five times a week for the past year to young men who had not. Participants were asked to observe dot arrays moving at varying speeds on a computer screen and identify the main direction in which they were moving.  Gamers responded to the arrays substantially faster and more accurately than the men that did not play video games, especially the dot arrays that were a more difficult level.

The findings of both of these studies suggest that the effects of video game play may have broader applications, including disease treatment and career preparation. The York University research team, for example, noted their findings could have important implications for those suffering from neurodegenerative diseases such as Alzheimer's, as video games may help them to rely on different, unaffected parts of their brains for hand-eye coordination tasks by rerouting  brain pathways. In addition, gamers may be better prepared for jobs that demand advanced visuomotor skills, such as laparoscopic surgeons. The University of Rochester research suggests that game play offers valuable training for real-life situations and career fields such as aviation that require quick decision making skills. These studies provide further evidence that video games have applications well beyond entertainment.


BECOMING FINANCE-SAVVY THROUGH GAME PLAY 

As teens and young adults mature and face increased responsibilities, financial literacy skills become more important to their everyday lives. However, according to the Jump$tart Coalition for Financial Literacy, the average senior in high school can only answer half of the questions posed on a basic financial knowledge test. To address this issue, several organizations are working to increase financial comprehension among youth, and a number are using video games to create a more interactive learning experience.

Visa and the National Football League partnered to develop Financial Football, which teaches financial skills in a fun and interactive way. The game, which is one of several available for free on PersonalMoneySkills.com, tests players' financial knowledge as they lead their favorite professional football team to the goal line. Before choosing a play, gamers must first answer a financial management question. Answer correctly and you will gain positive yardage. Answer incorrectly and the opposing team will make sure your play leads nowhere. The website also offers Financial Soccer, a game in which correct answers turn into successful passes and scoring shots, while incorrect answers allow the opposing team to steal the ball.

Financial Football and Financial Soccer are just two examples of interactive games available to help teach financial literacy. The non-profit Doorways to Dreams Fund also offers two such games on its website, FinancialEntertainment.org. In Celebrity Calamity, players assume the role of a business manager for up-and-coming celebrities who spend beyond their means. After earning money in a mini-game, players must decide which of their celebrity's shopping expenditures should be charged to a checking account or a credit card, and can be fired if they do not maintain a balanced budget. In Groove Nation, players guide dance teams as they compete on limited budgets. After a successful dance competition, players must decide how much of their earnings to put towards expenses, short-term saving and long-term saving as they try to earn enough to make it to the big show in Los Angeles.

For a more comprehensive learning experience, teens and young adults can check out EverFi's Financial Literacy Platform. This web-based simulation program is tailored for older students facing key financial decisions as they enter adulthood. The program offers virtual classes that measure progress along the way, and covers topics including saving and budgeting, understanding credit scores, managing loans and consumer fraud and protection. 

With a subject as important as financial literacy, it's crucial that teens and young adults acquire a solid understanding of the basic skills they will need to make sound financial decisions. These games introduce topics of financial literacy in fun and appealing ways, turning what could be a difficult subject into something far more accessible and engaging.


DIGITAL SALES BOOST COMPUTER AND VIDEO GAME INDUSTRY

As the entertainment software industry continues to develop new and exciting games, developers and publishers are increasingly looking to digital distribution channels to enhance their offerings and expand their audience, contributing to strong industry sales. Some full games may be downloaded from the Internet, including recent titles such as Take Two Interactive's Civilization V and Warner Bros. Interactive Entertainment's LEGO: Universe, as well as upcoming releases such as Electronic Arts' Harry Potter and the Deathly Hallows – Part 1.  Publishers are also providing more downloadable content to encourage gamers to spend more time with their titles, such as new characters, episodes and level maps. 

New data from market research company The NPD Group suggests that by transitioning to a broader business platform that includes digital distribution, computer and video game companies are boosting overall sales. According to The NPD Group, consumers spent approximately $3.7 billion on physical computer and video games in the first six months of 2010. However, this number does not include revenue generated from the 11.2 million games purchased as full digital downloads over the same period, or other digital sales. 

According to "Game Industry: Total Consumer Spend," when these and other non-traditional distribution channels are taken into account, The NPD Group estimates the industry generated between $2.6 and $2.9 billion in additional revenue. While the majority of industry sales are still generated by consumer purchases of physical retail items, this research suggests that the total consumer spend on game-related content is nearly 40 percent larger than physical sales alone.

Digital sales represent an important and growing market for the entertainment software industry, particularly as broadband Internet becomes more accessible. Digital distribution can also provide gamers with an opportunity to explore and enjoy their favorite games in new ways.

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In the News

10/25/2010 — The New HollywoodThe Wall Street Journal
10/2/2010 — From 'Avatar' Playbook, Athletes Use 3-D ImagingThe New York Times
10/16/2010 — Editorial: It's in the gamePhiladelphia Inquirer
10/24/2010 — O'Brien: Get ready for the decade of gamificationMercury News (CA)
10/21/2010 — UCF students learn how to be poll workers in virtual worldOrlando Sentinel (FL)
10/20/2010 — N.J. game developers become big playersNorthJersey.com
10/20/2010 — The Art of Play for SeniorsThe Washington Informer
10/6/2010 — Virtual disasters help police prepare for real threatsThe Orlando Sentinel (FL)
10/5/2010 — Editorial: Games are a good start to engaging kidsAthens Banner-Herald (GA)
10/5/2010 — Opinion: The First Amendment embraces video gamesThe News and Observer (NC)
10/5/2010 — Game teaches financial skillsFort Worth Star-Telegram (TX)
10/5/2010 — Students can use Wii video games for fitnessFort Morgan Times (CO)
10/4/2010 — Restricting video game sales violates free speechThe Baltimore Sun
10/20/2010 — Technology to help autistic childrenWJRT-TV (MI)
10/20/2010 — Video games offer kids developmental, social benefits study showsCreston News Advertiser (IA)
10/3/2010 — Simulation sizzlesFlorida Today

Latest News Releases

Quote of the Month

"Educational video games, handheld devices, and media production tools can allow young students to see how complex language and other symbol systems attach to the world... Early exposure to these media can teach students to master the production of knowledge, not just consumption."

— Michael Levine, executive director of the Joan Ganz Cooney Center at Sesame Workshop

 Did You Know?

The University of Central Florida (UCF), Valencia Community College and the Orange County Supervisor of Elections developed a virtual polling station on Second Life to train UCF students to serve as poll workers in the upcoming election. Students receive traditional instruction in the virtual setting, and then participate in simulations of the voting process. The program is intended to attract younger people to volunteer as poll workers, and, if successful, may be an alternative to in-person trainings.

Statistic of the Month

The U.S. Department of Education recently awarded $27 million in grants to the Corporation for Public Broadcasting, Window to the World Communications and the Hispanic Information and Telecommunications Network to support the development of educational technologies, including interactive online games, virtual worlds and handheld video game systems.

Contact Us

Entertainment Software Association
575 7th Street, NW
Suite 300
Washington, DC 20004

For general inquiries, please email esa@theESA.com.

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

Copyright © 2010 — ESA Entertainment Software Association

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