STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment...
-
Upload
preston-stanley -
Category
Documents
-
view
223 -
download
0
Transcript of STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment...
![Page 1: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/1.jpg)
STATEof the
INDUSTRY
STATEof the
INDUSTRY
Erik V. HueySenior Vice President of Government AffairsEntertainment Software Association
September 11, 2014
Today’s Video Game Industry in Pennsylvania
![Page 2: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/2.jpg)
The Entertainment Software AssociationThe Entertainment Software Association
Serves business and public affairs needs of U.S. computer and video game publishers
• 35 member companies• Activities include:
• Business and consumer research• Government relations• Legal and policy advocacy
• Content protection• Domestic and international IP policy • Technology policy
• ESA also operates E3, Video Game Voters Network, & ESA Foundation
• 2014 is the 20th Anniversary of ESAand ESRB
![Page 3: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/3.jpg)
Not your Father’s Video GamesNot your Father’s Video Games
1972
1981
1980
![Page 4: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/4.jpg)
That was then, this is now…That was then, this is now…
![Page 5: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/5.jpg)
No Longer a Niche IndustryNo Longer a Niche Industry
• $21 billion domestically (2012)• $79 billion worldwide in sales (2012)• $111 billion worldwide in sales in 2015, according to
Gartner• 67% of U.S households have video game consoles• 22% of the 153 million American gamers utilize all
four screens—TV, computer, smartphone, tablet—to play
![Page 6: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/6.jpg)
No Longer a Niche IndustryNo Longer a Niche Industry
• In 2010, Twitch did not exist• In 2014, Amazon bought Twitch for $970 million• 55 million unique visitors
globally every month• #4 in peak U.S. web traffic• Valve is #7 in U.S. web traffic
• On October 4, 2013, League of Legends Season 3 World Championship broadcast over Twitch had 32 million people watch, which is more than the series finales of Breaking Bad, 24, and The Sopranos—combinedSource: http://online.wsj.com/articles/amazon-to-buy-video-site-twitch-for-more-than-1-billion-1408988885
![Page 7: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/7.jpg)
No Longer a Niche IndustryNo Longer a Niche Industry
150–250 million gamers
1.2 billiongamers
2001 2013
Source: http://www.newzoo.com/infographics/global-games-market-report-infographics/e:
![Page 8: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/8.jpg)
Gaming’s Changing DemographicsGaming’s Changing Demographics
• Women make up 48% of gamers• The number of woman gamers 50 and older
increased by 32% from 2012 to 2013• 49% of adults age 50 and older say they play video
games• 80% of these gamers play video games on a weekly basis and
45% play on a daily basis• 92% play at home, and most game play, 55%, is done during the
evening hours
• AARP’s games webpage draws millions of visitors a month
• One of the most popular pages on their entire site
![Page 9: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/9.jpg)
U.S. Computer and Video GameSales GrowthDollars 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.
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010* 2011* 2012*
5.5 66.9 7 7.3 6.9 7.5
9.5
11.79.9 9.4 8.8
6.7
0.6800000000000030.700000000000001
0.45
0.380000000000001
5.4 6.87.3
7.71
Video Games Computer Games Other Delivery Formats
![Page 10: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/10.jpg)
Smashing RecordsSmashing Records
• G.T.A. V had the biggest one-day launch total in entertainment history
• Day One Movie Record: $91M(Harry Potter & The Deathly Hallows Part 2)
• Opening Weekend Box Office: $207 M(Marvel's The Avengers)
• Minecraft has 100 million registered users
![Page 11: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/11.jpg)
The App EconomyThe App Economy• Eight of the top 10 paid apps on the Apple App Store are games• Games make up 63% of Apple’s storefront revenue• Angry Birds has been downloaded almost 2 billion times. The free version
earns $1 million a month from ads• U.S. digital sales, including digital games and content, generated $11.7 billion
in 2013, up 10% from $10.7 billion in 2012• Worldwide mobile game growth will exceed $21 billion in 2014
![Page 12: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/12.jpg)
Changing Business ModelsChanging Business Models
• New platform technologies allowing companies to keep in constant contact with players• Cloud game play expected to reach 66 million U.S.
households by 2017• Social games continue to grow: Zynga currently
has 232 million monthly users and posted a 2013 Q3 revenue of $203 million
• Mobile games make up 1/3rd of digital game revenue; the average mobile gamer spends $25 per month on mobile games
![Page 13: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/13.jpg)
21st Century Jobs21st Century Jobs
Entertainment software is one of the fastest growing industries in the U.S. economy:
• 150,000 jobs in 36 states
• The average compensation is $95,000
• 390 colleges, universities, art and trade schools across the country offer courses, professional certificates, undergraduate and/or graduate degrees in video game design, development, and programming
• The Princeton Review’s report, "Top Schools to Study Video Game Design for 2014," ranks the top 25 undergrad and graduate schools with video game design programs
• In July, HEVGA launched at the 2014 Aspen Ideas Festival with 20 universities; it’s now up to 48 schools
![Page 14: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/14.jpg)
The AllianceThe Alliance
![Page 15: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/15.jpg)
HEVGA’s MembersHEVGA’s Members
![Page 16: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/16.jpg)
Are We In Your State? Yes!Are We In Your State? Yes!
![Page 17: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/17.jpg)
A Closer Look: Pennsylvania
A Closer Look: Pennsylvania
• Game companies located in 7 of PA’s 18 Congressional Districts (1, 2, 4, 8, 14, 16, & 17)
• 17 Developers & Publishers in PA; Eight in Pittsburgh
• Average compensation for Pennsylvania game developers is $85,000
• 25 colleges, universities, and trade schools, including CMU and Harrisburg University, offer video game design courses and/or degrees
Top Schools for Video Game Design 2014
![Page 18: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/18.jpg)
21 States and P.R. Have Enacted Tax Incentives21 States and P.R. Have Enacted Tax Incentives
%
![Page 19: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/19.jpg)
Texas Moving Image Industry IncentiveTexas Moving Image Industry Incentive
The Texas Moving Image Industry Incentive Program wascreated in 2007
• Facts from Texas’s 2014-2015 Biennium report, as of 6/30/14• Video Games received grants of $6.35M and spent $43.16M in Texas
• Each dollar invested resulted in more than $6.79 spent in Texas• Feature Films received grants of $6.65M and spent $37.61M in Texas
• Each dollar invested resulted in $5.65 spent in Texas
• TMIIP “Life of Program”: 2007 to June 2014• Video Games received grants of $21.51M and spent $245.45M in Texas
• Each dollar invested resulted in more than $11.41 spent in Texas; Film $6.89• Texas increased their incentive, effective September 5, 2013,
eliminating the wage-only option, and keeping the 2.5% “bump” for Underutilized and Economically Distressed Areas
• Qualifying spending of up to $1M = 5% (7.5%)• Qualifying spending of $1M to $3.5M = 10% (12.5%)• Qualifying spending above $3.5M = 20% (22.5%)
![Page 20: STATE of the INDUSTRY Erik V. Huey Senior Vice President of Government Affairs Entertainment Software Association September 11, 2014 Today’s Video Game.](https://reader035.fdocuments.in/reader035/viewer/2022062216/56649d985503460f94a82a44/html5/thumbnails/20.jpg)
STATEof the
INDUSTRY
STATEof the
INDUSTRY
Erik V. HueySenior Vice President of Government AffairsEntertainment Software Association
September 11, 2014
Today’s Video Game Industry in Pennsylvania