McMurran by wuyunqing


									Lt. Governor‟s Economic Development and International
                  Relations Committee
             Video Game Industry Briefing
                  November 19, 2008
      The Entertainment
     Software Association
 Serves the business and public affairs needs
  of U.S. computer and video game publishers
   Has more than 20 member companies,
    including Microsoft, Nintendo, and Sony
   Activities include:
     • Global anti-piracy program
     • Business and consumer research
     • Government relations
     • Intellectual property protection
   Also operates the ESA Foundation and annual
    E3 Expo
       From Niche Market
        To Mass Medium
 In little more than a generation, computer and
  video games have gone mainstream
    Pong (1972), Pac-Man (1980) and Tetris (1985)
     helped to put industry on the map
    Today, 65% of American households play
     computer and video games
  The Evolution of Games
 A wide variety of games are available today
   Newly popular genres include:
     • Role-playing games
     • Music games
     • Strategy games
     • Puzzle games
   In 2007, the ESRB rated 94%
    of all titles appropriate for ages 13 and under
   Life-like graphics and motion-sensing controllers
    have created a new video game experience
     A Broad and Diverse
       Consumer Base
 Widespread gaming has become part of our
  cultural landscape
   The average gamer is 35 years old
   Women represent 40%
    of gamers
   People older than 50
    represent 26% of gamers
Games Tackle Important Issues
  Organizations across all sectors of society
   now view video games as an effective tool
    Doctors use Re-Mission to
     teach young cancer patients
     about the disease
    The Department of Defense uses
     Virtual Iraq to treat Post-Traumatic
     Stress Disorder
    The United Nations uses Food Force
     to teach children about world hunger
Games Mean Serious Business

  An ESA survey found that 70% of businesses
   use games to train employees
    IBM developed Innov8 to teach graduate
     students business and IT skills
    The MITRE Corporation
     developed Job of Honor
     to create awareness of the
    Hilton Garden Inn employees practice
     customer relations skills in a virtual hotel
       Games Benefit
  Childhood Development
 Teenagers who play games with others tend
  to be more civically and politically engaged
   52% reported playing games where they think
    about moral and ethical issues
   43% reported playing games where they
    decide how a community should be run
   40% reported playing games where they learn
    about a social issue

     Source: 2008 Pew Internet & American Life Project survey
An Economic Powerhouse
 During Uncertain Times
 Entertainment software is one of the fastest
  growing industries in the U.S. economy
    Since 1996, sales have nearly quadrupled to
     $9.5 billion from $2.6 billion
    Including hardware sales, the industry
     generated $18.85 billion in 2007
    Recent data shows that current 2008 sales
     have increased by 30% over last year
    Analysts expect global sales to top $68 billion
     by 2012
     Industry Supports a
     Growing Workforce
 Industry directly and indirectly employs more
  than 80,000 people in 31 states
   Total national compensation equals $2.2 billion
   Industry projects to support over 250,000
    American jobs by next year
 More than 200 academic institutions across
  the U.S. offer game programs and courses
   Institutions include:
     • University of Washington
     • Art Institute of Seattle
        State Video Game Tax
        Incentive Competition
• 15 states provide economic incentives to encourage
  computer and video game production
• States like Florida, Georgia and Texas as well as
  Vancouver, B.C. are aggressively luring computer and
  video game development by providing tax incentives.
   • Canadian provinces offer tax credits for the video
     game industry that range from 30 - 45 percent.
   • States like GA and MI just enacted tax credits of up to
     25-30 percent for game development.
               Web Wise Kids
• National 501(c)3 nonprofit organization
• ESA Foundation partner
• Helped create and distribute Internet safety
  program to kids in school
• Teaches kids about essential safety and privacy
  issues including:
  •   Internet predators
  •   Online romances
  •   Bullying
  •   Cyber stalking
  •   Identity theft
   Web Wise Kids’ Approach
• Divergence from the lecture format: Using a
  hands on, minds on approach, Web Wise Kids
  offers educational computer detective games for
  middle and high school age students called
  MISSING, Mirror Image and Air Dogs.

• Ongoing support and education: Web Wise Kids
  offers parents, teachers, youth leaders, and law
  enforcement the use of a prepared Internet
  safety program.
          About the ESRB
• Founded by the ESA in
• Non-profit, self-
  regulatory body for the
  entertainment software
• Assigns ratings,
  enforces industry-
  adopted guidelines,
  and ensures
  responsible online
  privacy practices
      ESRB Rating System
Two equally important components to ESRB ratings:

Rating Symbols suggest age appropriateness (on front)

Content Descriptors indicate elements that may have
triggered a particular rating and/or may be of interest or
concern (on back)
Rating Category Breakdown
            PSAs: Radio and TV
• ESRB will kick off a PSA radio
  campaign on Nov 28 „08 (Black
  Friday) with spots airing on
  ABC Radio Networks
• Previous radio campaigns
  generated 190 million
  impressions from English and
  Spanish language stations and

                • Washington State Governor Chris Gregoire
                    •31.7 MM impressions on TV and 5.3MM
                    on radio
                 PSA Ads – Print
• ESRB has launched a national PSA print campaign featuring
  testimonials from 3 parents about their experience in using the ratings
• The ads were distributed to 150 publications with approx 10 (Family,
  Redbook, Ser Padres, Mira, Stars and Stripes, etc) committing to run
  an ad, so far
         Rating Summaries: NEW!
• Although 69% of parents say ESRB ratings are the “most”
  or a “very important consideration” in their purchase
• Parents also say: “the ratings do not provide sufficient
Solution: Rating Summary
• Each Rating Summary will explain in concise (typically 2
  or 3 sentences), objective terms the context and relevant
  content that factored into the rating assignment, with an
  emphasis on embellishing the content descriptors.
• 80% of parents said they are interested in Rating
  Summaries and 78% thought they would be very helpful in
  choosing appropriate games.

Sources: Hart Research 2/08 500 parents and 7/08 400 parents
 Ratings Search Widget Push
Apr – Sept 08

- 14,000 users conducting
   36,000 widget searches
- 2 million widget views
   (10% interacted views)
- 2,000 widget installs
- Holiday widget outreach
   to over 100 websites

Ratings 2 Go!

Accessible on:

• Rating search widget
• Mobile Website (
• E-newsletters

          Partnership – PTA
• PTA/ESRB booklet: A Parent’s Guide to
  Video Games, Parental Controls and
  Online Safety
• Launched: April 2008
• Distribution: 750,000 booklets to all
  26,000 state and local PTA chapters
• Webcast & radio: Panel discussion
  hosted by Alex Goldfayn, The
  Technology Tailor, with PTA national
  president Jan Harp Domene, ESRB
  president Patricia Vance and GamerDad
  Andrew Bub
• Online: Downloadable version of the
  booklet in English and Spanish on and
 ESRB Retail Council (ERC)
• Established in November 2005

• “Commitment to Parents” Code
   adopted in June 2006

• ERC members include:
   • Best Buy
   • Blockbuster
   • Circuit City
   • GameStop (EB Games)
   • Movie Gallery (Hollywood Video / GameCrazy)
   • Sears/Kmart
   • Target
   • Toys „R‟ Us
   • Wal-Mart
  FTC Mystery Shopper Audits
   Percent of
    Children       2000   2001   2003   2006   2008
R-rated Movie at   54%    52%    64%    61%    65%
R-Rated DVD at     N/A    N/A    19%    29%    53%
PA-Labeled CD at   15%    10%    17%    24%    46%
M-rated Video      15%    22%    31%    58%    80%
Game at Store
   Additional Information
For additional information, please
     contact Jean Leonard at

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