Will mobile devices, VR and AR fuel expansion?
The video game industry is growing in size, technological sophistication and social reach. More people are playing, more are playing in groups and the demographics of the business are changing, belying the old image of the typical gamer as a male teenager and often a loner. The industry is spreading beyond entertainment to play a role in employee training, education and health care. The widespread use of mobile phones has increased the reach of gaming, and the development of innovations such as virtual reality and augmented reality create opportunities for expansion.
Here are some key takeaways:
Nearly half of the U.S. adult population plays video games, according to a Pew Research Center survey.
Consumer spending on games in 2016 exceeded $30 billion, fueling an industry that employs more than 65,000 workers and added $11.7 billion to the nation’s GDP, according to industry data.
Sony, Microsoft and Nintendo continue to dominate the gaming business, even as some participants move to play on mobile devices.
Resources for Further Study
Hansen, Dustin, “Game On! Video Game History from Pong and Pac-Man to Mario, Minecraft, and More,” Feiwel & Friends, 2016. A video game executive looks at the growth of games.
Harris, Blake J., “Console Wars: Sega, Nintendo, and the Battle that Defined a Generation,” Dey Street Books, 2014. A writer chronicles how Sega, a small gaming company, took on the juggernaut Nintendo and revolutionized the video game industry.
Schreier, Jason, “Blood, Sweat, and Pixels: The Triumphant, Turbulent Stories Behind How Video Games Are Made,” Harper Paperbacks, 2017. This book explores the artistic challenges, technical impossibilities and marketplace demands of developing popular video games.
Anderton, Kevin, “The Business Of Video Games: A Multi Billion Dollar Industry,” Forbes, April 29, 2017, http://tinyurl.com/
Coppock, Mark, “Gaming market explodes for $91 billion in 2016, led by mobile and PC games,” Digital Trends, Dec. 22, 2016, http://tinyurl.com/
Desjardins, Jeff, “How video games became a $100 billion industry,” Business Insider, Jan. 12, 2017, http://tinyurl.com/
Miller, Chance, “Tim Cook touts the future of AR, says the technology isn’t there yet for AR glasses,” 9to5Mac, Oct. 10, 2017, http://tinyurl.com/
Popper, Ben, “Field of streams: how Twitch made video games a spectator sport,” The Verge, Sept. 30, 2013, http://tinyurl.com/
Shapiro, T. Rees, “Can video games make kids smarter? Yale University researchers think so,” The Washington Post, Sept. 15, 2016, http://tinyurl.com/
Reports and Studies
“Essential Facts About the Computer and Video Game Industry,” Entertainment Software Association, 2017, http://tinyurl.com/
Duggan, Maeve, “Gaming and Gamers,” Pew Research Center, Dec. 15, 2015, http://tinyurl.com/
The Next Step
Gallagher, Michael D., “Video games virtually certain to drive future innovation,” The Hill, July 5, 2017, https://tinyurl.com/
Matheson, Rob, “Demo day showcases serious innovation in ‘playful’ tech,” MIT News, Aug. 17, 2017, https://tinyurl.com/
Patterson, Dan, “Game companies are forerunners of the next wave of business tech innovation,” TechRepublic, July 21, 2017, https://tinyurl.com/
Becker, Rachel, “Say what? Playing a puzzle video game could help improve your hearing,” The Verge, Oct. 20, 2017, https://tinyurl.com/
Dobkin, Adin, “The Video Game That Could Shape the Future of War,” The Atlantic, Oct. 26, 2017, https://tinyurl.com/
Vanian, Jonathan, “Farmers Insurance Is Using the Oculus Rift to Train Workers in Virtual Reality,” Fortune, Oct. 25, 2017, https://tinyurl.com/
1201 W. 5th St., Suite T-900, Los Angeles, CA 90017
A company that has created augmented reality-enabled helmets and glasses for use by the aerospace, defense and engineering industries.
Entertainment Software Association
1211 Connecticut Ave., N.W., Washington, DC 20036
A U.S. trade association that supports the business and public affairs needs of companies that publish computer and video games for video game consoles, handheld devices, personal computers and the internet.
25 Ropemaker St., London, EC2Y 9LY, United Kingdom
+44 20 7260 2000
Global consulting firm that offers information about, and analysis of, industries and markets, including video games.
1 Microsoft Way, Redmond, WA 98052
Creators of the Xbox 360 gaming console.
Nintendo of America
4600 150th Ave., N.E., Redmond, WA 98052
Gaming giant that created the Wii console.
Sony Corporation of America
25 Madison Ave., New York, NY 10010
Creators of the PlayStation gaming console.
55 Broad St., 30th floor, New York, NY 10004
Company that provides an online portal for statistics, market research and business intelligence.