The Business of Digital Gaming

“Can we create technology that is as natural as talking to a friend? This is where we want to go, and it’s happening in front of our eyes.”

KEITH HEROLD, A SENIOR PROGRAM MANAGER LEAD WITH MICROSOFT TELLME, 2011

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Today, about 72 percent of households play computer or video games. The entire U.S. video game market, including portable and console hardware and accessories, adds up to about $20.8 billion annually, while global sales have reached $74 billion. Thanks largely to the introduction of the Wii and mobile games, today’s audience for games extends beyond the young-male gamer stereotype. Though the obsessive gamers who frequent GameSpot and IGN are largely youthful and male, the population of casual gamers has grown much more diverse. According to the video and computer game industry’s main trade group, the Entertainment Software Association, the average game player is thirty years old and has been playing games for thirteen years. Women constitute 46 percent of game players. Gamers play across a range of platforms: 51 percent of U.S. households have a video console, 43 percent play games on smartphones, and 37 percent play on a dedicated handheld player. Gamers are social, too: 62 percent of them play games with others, either in-person or online.28 These numbers speak to the economic health of the electronic gaming industry, which has proved recession-proof so far. Digital gaming companies can make money selling not just consoles and games but also online subscriptions, companion books, and movie rights.