Video Games: the Industry

Video Games: The Industry

Digital Distribution, Technological Advances,

Gamer Expectations, Piracy, and More

Microeconomics

Dr. Plummer

1:25-2:20 MWF

In modern times, being a “gamer” is a negative stereotype. The average person usually attributes video games to things like procrastination, laziness, and aggressive or even violent attitudes. Despite this, video games has been, and is increasingly becoming, a large industry within the economy. Nearly every individual within the recent generations has played or owned a video game for some time.

Even if the stereotype exists that video games are just a waste of one’s time, it’s hard to deny that it holds an important role in the economy of both the U.S. and the world as a whole. “It is critical that we support economic sectors that create jobs, develop innovative technologies and keep America competitive in the global marketplace. The video game industry is one of those important, high-tech economic drivers. Our industry generates over $25 billion in annual revenue, and directly and indirectly employs more than 120,000 people with an average salary for direct employees of $90,000.”[1] 72% of American-owned households possess and play video games, making it an integral component in the American economy.[2]

In addition, the industry is not a simple one. It seems like all a person would have to do to make a living with video games is either help design a game people will want to buy and play, or help design a system people will want to buy and play games on. But many factors affect the gaming market, even more so than in the past. These factors can be minor, but often they can make or break an entrepreneur’s attempt at cashing in on the wide market available.

One such factor is gamers’ expectations. Any business owner who knows what they’re doing knows that giving your target market what it wants is often the best way to make a profit. Problem is, gaming is an industry whose target...