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New IDSA Report Provides Rough Census Of Industry

The <a href="http://www.idsa.com">Interactive Digital Software Association (IDSA)</a> published a new report yesterday which quantifies the economic impact of videogame demand on the U.S. economy.

Game Developer, Staff

May 1, 2001

1 Min Read
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The report, "Economic Impacts Of The Demand For Playing Interactive Entertainment", looks at the effects that this demand has had on the information sector (e.g., the increase in Internet use due to people who play multiplayer games online), trade sector (the impact on wholesalers and retailers), transportation sector (trucking and air freight), wages earned by people affected by the industry, and more. The report was based on a study conducted by Robert Damuth of Nathan Associates. Of note, the report revealed the following:

  • Game sales have grown 15% per year from 1997 to 2000, based on revenues directly from game publishing, as well as its secondary impacts on freight transportation, wholesale and retail sales, and other related areas. In contrast, the U.S. economy grew at 4.6% per year.

    • The number of people working directly in the game software publishing industry was pegged at 29,500.

    • Jobs directly and indirectly connected specifically with game publishing (excluding, for instance, the retailing segment) totalled 124,500. This includes tool makers who supply the game publishing industry, and other direct beneficiaries of the publishing segment.

    • While the industry generated $6 billion in game retail sales (slightly down from $6.1 billion in 1999), the total market for game sales was $9.3 billion. The total market factors in an additional $3.3 billion for sales to OEMs, game exports, and sales directly to consumers.

    • On a state-by-state basis, California is by far the largest beneficiary of the game industry. California employs 29% of the game industry, far ahead of Massachusetts (11%), Texas (6%), and Illinois (5%).

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