ESA: Games outpacing US economy

Study finds gaming industry grew at more than 17 percent from 2003 to 2006, with more $2.2 billion paid to 80,000 employees in 31 states.

2007 is shaping up to be a pretty good year for the gaming industry. In September, the NPD Group projected that the gaming industry is on track to haul in more than $18 billion in hardware, software, and accessory sales for 2007, with revenue for the year already up 50 percent year-over-year at that time.

With consumers readily ponying up their hard-earned dollars for the gaming industry's wares, it's no wonder, then, that the industry's growth rate tallied more than 17 percent from 2003 to 2006, reports the Entertainment Software Association today. As the ESA notes, that percentage far outstrips the US economy, which for reasons both far and wide, struggled to 4 percent growth rate over the same period.

Conducted by Economists Incorporated and funded by the ESA, the study concluded that the US gaming industry directly employed more than 24,000 individuals with an average salary of $92,300 in 2006. Indirectly, that number rose to 80,000 people spanning 31 states and totaling $2.2 billion in worker wages. As for its impact on the national economy, the ESA reports that the industry's contribution to the US's total market value was $3.8 billion in 2006.

"Computer and video game companies play an ever increasing role in our nation's growing economy," said ESA CEO Michael Gallagher. "These companies and their colleagues across the nation are making entertainment software one of the fastest growing industries in the United States."

The ESA's report indicates that California plays home to the most gaming-industry professionals at 40 percent, with the second most populated state being Washington. California's gaming industry grew by 12.3 percent in 2006, outpacing the state's overall growth by a rate of nearly three to one. While impressive, that figure pales in comparison to Virginia, which grew at a rate of 552 percent in 2006, more than 172 times faster than the state's overall growth.

47 Comments

  • somberfox

    Posted Nov 28, 2007 4:07 pm PT

    "I continue to be of the belief that playing games is better for a person than watching television."

    It is better, games are a far more social medium and they can be used to encourage teamwork and communication. Parents should play multiplayer games with their children on a regular basis to teach them to appreciate working with others.

  • andyrae11

    Posted Nov 28, 2007 12:55 pm PT

    The sales of packs of gum can outpace the US economy.

    Just keep that invisible "financial reserve" ready for the days ahead. hah Condescending? Oh yes.

  • fionndruinne

    Posted Nov 28, 2007 11:46 am PT

    I continue to be of the belief that playing games is better for a person than watching television. And that's largely the pastime than gaming is replacing, I think.

    Gaming keeps a person competitive. Not always good, but if they still go out and play sports, etc., instead of becoming just another couch potato fed with the depressing drivel of TV, that's all to the good.

  • vanessasboy

    Posted Nov 28, 2007 10:32 am PT

    Wahoo! Spending when we don't got it in true gamer fashion! Materialism, the backbone of a hurting economy.

  • JackfnBurton

    Posted Nov 28, 2007 10:03 am PT

    One thing that hasn't changed about the internet since the 1980's is that it's full of bitter people who know everything. Geez, look at the bright side. I personally find this all pretty encouraging, as it means a wider variety of better games for us all.

    Heaven knows I have done my part...being a gamer is more expensive than a drug habit. I should wise up and get strung out. It would definitely be cheaper. As for who makes what and whether everyone's taxes are fair well...slightly off topic but I know people who make minimum wage and I know people who make six figures. The common denominator is that they all think they don't make enough. So, what can you do? Some people just like to complain. I just like to play video games. Rock on.

  • Chief_Kuuni

    Posted Nov 28, 2007 9:54 am PT

    well if people could afford it then it's all good

  • chakan2

    Posted Nov 28, 2007 8:58 am PT


    "92,300 sure seems big"



    In California that's like minimum wage. When you have to pay over 1 million for a 1 bedroom house (where most of the developers are) that doesn't go very far. And you're working 100 hour weeks. Screw that.

  • raahsnavj

    Posted Nov 28, 2007 8:43 am PT

    $92,300 sure seems big but the key is the words in front of it "Salary". Salary means you get paid that regardless of hours worked. I get paid less, but am never expected more than 40 a week. in the long run I make 50% more per hour than those pulling 60-80 hours a week. Sure I'm paying for the difference in wage by having a life and I think it is worth it.

  • jonfigs

    Posted Nov 28, 2007 8:20 am PT

    Well this is good news but with great power comes great responsibility....queue spiderman music.

  • prioritymail

    Posted Nov 28, 2007 7:52 am PT

    Sweet!

  • NandoSupes

    Posted Nov 28, 2007 4:29 am PT

    this is why I'm thinking moving to California in the near future,thats where game developers really have the largest opportunity to get a job on this field,which is what I want to become,specifically a game designer.

    is good that the video game industry has become what it is,but the more important thing is to play our great games and have fun.

  • MetalZombieII

    Posted Nov 28, 2007 3:41 am PT

    neonick419... Punished for being successful? No. Pay according to your income? Yes. As for the top 20% paying 80% of the tax, I guarantee they don't pay anywhere near 24% of their income to taxes, so answer this, why should someone be punished for making less money?

    People like you annoy me. You should pay more if you make more, a flat tax is not a punishment it's actually quite fair. See I feel that if I have to pay out 24% of my income to taxes, then everyone should. You would still earn and get to keep more money then someone who makes less money and in the end if we had a flat tax it wouldn't be 24%, it would be much less.

    Funny thing is the rich would still be rich even if we had a flat tax, but the margins would be smaller... God Forbid

    Oh and for the record a large number of rich people in this world are born into money they didn't earn it and some of the others got ahead purely by luck.

  • lamprey263

    Posted Nov 28, 2007 12:17 am PT

    @Jbul & @exedeath

    "2007 will go down as one of the very best (in terms of quality)"

    "You mean quantity, not quality."

    actually, I think 2007 is a pretty good year with regards to quantity of quality

  • HellRazer360

    Posted Nov 27, 2007 8:12 pm PT

    WOOT....ya see to all those damn parents out there saying video games are nothing but bad for your kids....look what its doing to the industry or economy whatever....video games are becoming king

  • smbius

    Posted Nov 27, 2007 7:22 pm PT

    This is a different generation. More of the people who grew up with the Atari and NES are more inclined to buy games and consoles.

  • Rej72380

    Posted Nov 27, 2007 5:36 pm PT

    Considering that I've purchased 2 GBA games and at least 4 DS games in 2007, I'm definately helping the video game industry reach new levels of growth. Of course, this year is at least 1,000X better than 1983 and 1984, combined, the two years the video game market crash lasted.

  • exedeath

    Posted Nov 27, 2007 5:34 pm PT

    You mean quantity, not quality.

  • Jbul

    Posted Nov 27, 2007 5:27 pm PT

    2007 will go down as one of the very best (in terms of quality) years for videogames, ever. It's encouraging to see the public keeping pace, and participating more. We can only hope that this will mean the quality of games will continue to increase, due to an influx of profit and popularity of our hobby.

  • ColdfireTrilogy

    Posted Nov 27, 2007 5:07 pm PT

    Hmm thats interesting.

  • ratradler

    Posted Nov 27, 2007 4:41 pm PT

    @ e-racer22

    I write application software too. They want me here more, but I produce more than the others that work long hours so they let it slide. Still have unrealistic schedules and crappy requirements, just the nature of the beast I guess.

  • realitysux21

    Posted Nov 27, 2007 4:31 pm PT

    lol imagine the 360 bringing the US back from the ashes of defeat jk

  • neonick419

    Posted Nov 27, 2007 4:22 pm PT

    "yeah, that's because the U.S. economy blows. The rich aren't being taxed nearly enough."

    The rich are taxed too much. The top 20% pay 80% of the federal income taxes. You shouldn't be punished through taxes for being successful.

    But anyway, this just shows how little piracy affects the gaming market.

  • lamprey263

    Posted Nov 27, 2007 4:22 pm PT

    well, being as the gaming industry has been the target of politicians trying only to make a name for themselves for condemning the industry and making a villain out of it, maybe now they'll see that the gaming industry is important to the economy and will not interact with it merely as a political stunt, such as keeping certain games off shelves, but maybe now they'll encourage its growth even further

  • neonick419

    Posted Nov 27, 2007 4:21 pm PT

    "yeah, that's because the U.S. economy blows. The rich aren't being taxed nearly enough."

    The rich are taxed too much. The top 20% pay 80% of the federal income taxes. You shouldn't be punished through taxes for being successful.

    But anyway, this just shows how little piracy affects the gaming market.

  • e-racer22

    Posted Nov 27, 2007 4:15 pm PT

    @ ratradler

    40 hours a week, I need that gig! :-)

    But I agree, I've been a code monkey for the last eight years writing application software for the desktop and web and love every minute of it. I'm constantly learning new things, being challenged, and perfecting my technique. It truly is a journey of love ... except for all the adherence to unrealistic schedules established prior to gathering any requirements ... but I digress. :-)

  • Lord__Darkstorn

    Posted Nov 27, 2007 4:15 pm PT

    yeah, that's because the U.S. economy blows. The rich aren't being taxed nearly enough.
    But an average of $92,300 per year, that's INSANE! More than double the Nat'l average.

  • A7Xfan

    Posted Nov 27, 2007 4:12 pm PT

    It was kinda cool growing up when all my friends would lay games with me but it was OUR hobby. Now I guess it's bound to become everyones hobby soon. May the hardcore stay hard. Maybe we'll get some more good competition, who knows.

  • nintendorocks

    Posted Nov 27, 2007 4:11 pm PT

    So it's offical. Miyamoto>George Bush

  • ChickenHounk911

    Posted Nov 27, 2007 3:42 pm PT

    Jump on the video game bandwagon while you can...

  • ratradler

    Posted Nov 27, 2007 3:31 pm PT

    @ RgvXavi

    I have programming knowledge, a B.S. in C.S. and work 40 hours every week writing C++. Guess what- I don't attest. Learn to love it and your life will be a lot easier.

  • DonutTrooper

    Posted Nov 27, 2007 3:26 pm PT

    Not like it was a suprise. America is no longer an industrial nation, its an IT nation

  • RgvXavi

    Posted Nov 27, 2007 3:21 pm PT

    the big money is in IT security, which is why i changed my major. i was at a job seminar and a company rep for a local company said they were paying 55K to people straight outta college with degrees in IT security. ITSEC is what you want to be doing if you bust into the IT industry. the sucky part is you have to go through at least 3 semesters of programming and, as anyone with progknowledge can attest: it's like calculus, tedious and time consuming.

  • remaGloohcSdlO

    Posted Nov 27, 2007 3:17 pm PT

    It's about time my life long hobby gets some recognition! Game on!!!

  • Merl57

    Posted Nov 27, 2007 3:11 pm PT

    Downsizing cause EA is gobbeling up companies and other companies are merging leading to less employees

  • ratradler

    Posted Nov 27, 2007 3:00 pm PT

    @endocrine

    Smart kid, you can read between the lines.

  • cloudstrife75

    Posted Nov 27, 2007 2:56 pm PT

    If its growing then why are companies down-sizing their employees?

  • endocrine

    Posted Nov 27, 2007 2:55 pm PT

    Is their economic growth rate per year or per 4 years because the economy of the US grew about 13% over the 4 years at an average rate of about 3% not the stated 4% from 03-06 like this article states.

  • endocrine

    Posted Nov 27, 2007 2:47 pm PT

    The problem with giving an average salary is that the average person does not make that much. You get lead programmers that can make alot more, and the average programmer making significantly less. I bet you the median salary is probably closer to 45,000.

  • ratradler

    Posted Nov 27, 2007 2:44 pm PT

    Hmm.. 92,300 is pretty high. If that is the average I wonder what the median is?

  • Generic_Dude

    Posted Nov 27, 2007 2:42 pm PT

    Well, you could knock me over with a feather. /sarcasm

  • Spacehusky

    Posted Nov 27, 2007 2:29 pm PT

    An average salary of $92,300? I'd better switch from engineering to computer science

  • ShweyGamer

    Posted Nov 27, 2007 2:27 pm PT

    games will rule the world and are. i love lamp.

  • UnholySaviour

    Posted Nov 27, 2007 2:04 pm PT

    You know it seems like an important bunch of numbers until you think that the US has spent what now...$650 BILLION on the latest war alone, and over $2 TRILLION on the last 3 combined.

    But good for the game industry...

  • K_M82

    Posted Nov 27, 2007 2:03 pm PT

    Like in Star Trek the Next Generation in the future all entertainment will be games (the Holodeck).

  • Purvis11

    Posted Nov 27, 2007 2:00 pm PT

    Finally some nice comments on the industry...Canadian figures at all??

  • ocdog45

    Posted Nov 27, 2007 1:49 pm PT

    games will rule the world one day.....

advertisement

Hot Stories

Newsmakers

Featured Stories

Tags

economy   esa   games

Submit News

Got tips? Send them in!

Recent News

See All News »

Site Blogs