Games For Change Conference: Federal Games Working GroupGames For Change Conference: Federal Games Working Group

State of the Video Game Industryand its Role in Games for Impact

Erik V. HueySenior Vice President of Government AffairsEntertainment Software Association

June 18, 2012

The Entertainment Software AssociationThe Entertainment Software Association

Serves business and public affairs needs of U.S. computer and video game publishers

• More than 35 member companies• Activities include:

• Global anti-piracy program• Business and consumer research• Government relations• Public Relations• Intellectual property protection

• Also operates E3 Expo, Video Game Voters Network, ESA Foundation

2

“Not your Father’s Video Games”“Not your Father’s Video Games”

That was then, this is now…That was then, this is now…

No Longer a Niche IndustryNo Longer a Niche Industry• $66 billion worldwide in sales (2010)• $24.75 billion domestically (2011)

• Music for 2010: $15B and Movie Box Office for 2010: $10.5B • 40 million people subscribe to Xbox Live and 90 million on Sony’s

Playstation Network Worldwide• Mobile game industry made $8 billion in sales in 2011. • 67% of U.S households have video game consoles

• Call of Duty: Modern Warfare 3 set launch records• It sold more than 6.5M units in the US and UK within its first 24 hours • Modern Warfare 3 grossed $1 billion in 16 days; it took Avatar 17 days• Call of Duty franchise set opening day records three years in a row

U.S. Computer and Video GameDOLLAR Sales Growth

Dollars in Billions

Source: The NPD Group/Retail Tracking Service; Game Industry: Total Consumer Spend* Figures include total consumer spend** Other delivery formats include subscriptions, digital full games, digital add-on content, mobile apps, social network gaming, and other physical delivery. 2000-20008 figures are sales of new physical content at retail exclusively.

Changing DemographicsChanging Demographics

• 91% of U.S. children ages 2-17 play video games• 42% of all players are women

• women over 18 years of age are one of the industry’s fastest growing demographics (30%)

• In 2010, over 20% of gamers are over the age of 50• 40% of American parents play video games with

their children weekly

Traditional Console Model is Up and MovingTraditional Console Model is Up and Moving

2011: 1.5 Billion

Est. Consumers Worldwide

2000: 200 Million

The Future of Video GamesThe Future of Video Games• Increased social interaction• Communities are building around games; ecosystem of interconnected

users• Casual / mobile gaming is on the rise• 7 of the top 10 apps are games

• Angry Birds has been downloaded 140 million times. The free version earns $1 million a month from ads.

• Over 40% of time on Xbox Live is not spent playing games• Games are now a service, not just a static product• Streamed movies• User-created content

Games for ImpactGames for Impact“What we’re seeing in games is art at a world-class stage design that is almost unmatched

anywhere else. It has been very exciting to me to see so many ideas that integrate social good and efforts to make the world a better place into games.”

- Al Gore, former vice president and co-founder and chairman of Generation Investment Management

• Over the past three years, the Entertainment Software Association (ESA) has partnered with the Obama Administration on a number of public-private initiatives across a range of topics as our industry continues to grow.

Past ESA Public – Private PartnershipsPast ESA Public – Private Partnerships

• MacArthur Game Changers• Apps for Healthy Kids

Current ESA InitiativesCurrent ESA Initiatives

• The 3rd Annual Games and Learning Roundtable was held at the E3 Expo

• The discussion focused on transforming learning and assessment practices in the US through the design, development, and distribution of formative assessments with digital games at their core.

• Officials from The White House, Joan Ganz Cooney Center at Sesame Workshop, NASA, California Endowment, The MacArthur Foundation, The Bill & Melinda Gates Foundation, AMD, Institute of Play, Konami, Electronic Arts, and Sony Computer Entertainment of America attended the discussion.

Current InitiativesCurrent InitiativesActive Play PALA Challenge• The Active Play PALA+ Challenge is a collaborative effort between the

Entertainment Software Association (ESA) and its member companies and the President’s Council on Fitness, Sports & Nutrition (PCFSN). It will feed off of the excitement surrounding active video games and motivate Americans of all ages and abilities to lead a healthy lifestyle by making video game screen time truly “active.”

Source: EA Sports; www.nasa.gov/open

Inspired by real-world NASA topographical data, EA Sports will re-launch SSX franchise (1/12) with gamer choice of

iconic mountains

Inspired by real-world NASA topographical data, EA Sports will re-launch SSX franchise (1/12) with gamer choice of

iconic mountains

Private Sector Use of Government DataPrivate Sector Use of Government Data

Current InitiativesCurrent InitiativesThe 2012 National STEM Video Game Challenge

• Announced by President Obama at launch of Educate to Innovate Initiative• A total of $80,000 in prizes was awarded to the winners and their sponsoring

organizations.• This year, youth applications increased 600 percent (3,700 youth entries).• Partners include the Joan Ganz Cooney Center, E-Line Media, AMD

Foundation, Microsoft, CPB, and PBS and the Ready to Learn program.

“Well-designed video games can help students excel in STEM and have fun doing it”Tom Kalil, Deputy Director for Policy in the White House Office of Science and

Technology Policy

2012 STEM Video Game Challenge2012 STEM Video Game Challenge