DRAFT
Summary of Potential Strategic Opportunity:
Computer and Video Gaming Industry
November 2, 2005
“Whether we like it or not, this is the medium of our moment. It is a medium that is telling
our cultural story and the fact that it is a primary tool of youth and adolescents means it
will have a tremendous impact on how the next generation or two plays itself out…”
Sheldon Brown, Visual Arts Professor and Director of the Center for Research in Computing and the
Arts, University of California, San Diego
“The opportunities for our industry are vast and exciting. We are growing and broadening
our audience, opening new frontiers, developing online and wireless platforms and creating
truly original and unique forms of entertainment.”
Douglas Lowenstein, President, Entertainment Software Association
“ We are seeing interactive entertainment in its infancy right now. It’s like being at the
dawn of television. What happens now is going to affect how everyone is entertained in the
future.”
Rob Adams, Orbital Media
Economic
Impact:
Is the industry economically critical; i.e. would the region
be substantially impacted by the industry growing, changing,
or leaving? Are there impacts on other parts of the
economy due to the state of this industry or sector?
Preliminary research on the size and significance of the computer and
video game industry is as follows:
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U.S. computer and video game software sales grew 4% in 2004 to $7.3
billion, a more than doubling of industry software sales since 1996. This
compares to about $9 billion in sales for the film industry in 2004.
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Video games will eclipse music as the second most popular form of
entertainment by 2008, with worldwide consumer spending on video
games hitting $55 billion compared to $33 billion for recorded music.
The rise of a large middle class in India and China is driving demand for
consumer products all over the world. Big companies like HP, eBay and
Electronic Arts, are increasingly focusing on these consumer markets.
In 2004, in the U.S., more than 248 million computer and video games
were sold (up 4% from 2003), almost two games for every household in
America.
75% of American heads of households play computer and video games.
47% of Americans have purchased or plan to purchase one or more games
in 2005.
42% of game players say they play games online one or more hours per
week. In addition, 34% of heads of households play games on a wireless
device such as a cell phone or PDA, up from 20% in 2002.
The technical requirements for video games are pushing the most popular
technologies (cell phones, Palm Pilots, computers and TV) to become more
versatile and powerful.
College graduates are now more likely to head into interactive software
than moviemaking and most big films such as “Star Wars” and “SpiderMa” are created simultaneously with interactive games that are released
at the same time. (Christian Science Monitor, June 3, 2005)
The industry is now at an important crossroads, say experts, largely due
to it its explosive growth. With the costs to develop a hit new game
topping $10 million, major game companies such as Sony and Microsoft
are in danger of favoring profits over the innovative spirit that brought
them to this point. (Christian Science Monitor, June 3, 2005)
High
Growth?:
Criteria which could include a growing number of jobs,
changes in the nature of the work, an emerging industry,
high wage jobs, ability of workers to transition into this
industry, etc.
There is clearly significant growth in the computer and video gaming
industry as described above. But will this growth translate into a substantial
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enough need for workers - who fit the community college profile - that it
warrants an organized response?
Answering this question has been somewhat elusive, because LMID data on
projected growth of computer and video gaming occupations is not available
currently. What we do know is:
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The projected job growth in the digital media industry is significant. For
example, the growth projected for multimedia artists and animators, in
California from 2002-2012 is 27.8% or 2,200 new jobs. When separations
are included – 1,700 more workers will be needed over this period –
making the percentage of growth in total jobs an impressive 49%.
The average wage for these multimedia artists and animators is $31.75
per hour - an excellent wage.
The general job titles and skills sets needed in the computer and video
gaming industry are closely aligned with the job titles and skills needed in
the digital/multi-media industry. However, there are some unique skill
sets to creating computer and video games.
There is a clear career path in the computer and video gaming industry
that somewhat mirrors the career path in the multi-media/digital media
industry.
The following chart shows the job growth in occupations that are most
closely aligned with occupations in computer and video gaming:
California Occupational Projections 2002-2012
Occupation
2002
2012
10,100
Employment
Change
2,200
Percentage
Change
27.8%
Openings due
to separation
1,700
Median
hourly
$31.75
Multi-media
Artists/animators
Producers/Director
Computer
Programers
Computer Software
Engineers
7,900
11,400
48,200
14,300
53,700
2,900
5,500
25.4%
11.4%
1,700
11,400
N/A
$35.47
79,100
108,900
29,800
37.7%
7,800
$40.96
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Career Path Information
The International Game Developers Association (IGDA) has a section on
their web site devoted to career paths in the industry and how to “break in”
to jobs in video and computer game production. This term implies that
getting into the industry is not easy – and that is true if you want to be a
designer or a producer. But it appears that there is room at the entry-level
positions (see below) for workers with the appropriate skills and motivation
to enter the industry. There very well may be a significant number of
opportunities for community college students who have the proper training –
training which our colleges can provide.
Computer and Video Game Industry Career Path (from igda.org)
Area
Occupations
Audio
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Production
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Visual Arts
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Programming
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Comments on entry-level
jobs
sound engineer/designer
composer
audio programmer/engineer
Producer
Project Manager
Associate Producer
Game Tester
Lead Tester
Intern artist
3D Model Builder (objects)
2D conceptual artist
2D texture artist
3D cutscene artist
3D character builder
3D character animator
Level builder
Art Director
Art technician
Junior Programmer
Lead programmer
Engine/Tools programmer
AI programmer
Multiplayer networking
programmer
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Generate games sound
effects, compose music,
write software to support
sound
Game tester detects bugs
and reports to
programmers. Lead tester
supervises all testers and
often trains them.
Appears to be a lot of
cross-over here with the
skills needed to me a multimedia artist and animator,
although there are some
unique software packages
that artists in this
industry need to be
familiar with.
Code is the core stuff of
games. 3D graphics
programming is a must.
Also helpful are: AI,3D
math, physics, sound
programming, collision
systems, game design
EntrySalary
(1-2 years
Experience)
$45,000
Producer
$60,000
Testers –
$10-12 per
hour(?)
$57,000
$55,000
Design
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Biz & Misc.
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game designer
lead designer
level designer
fiction writer/screenwriter
theory. C/C++ seems to be
a very common program
used in the industry.
Level designers builds the
interactive architecture
for a segment of the game.
Screenwriter creates the
backstory, writes
character dialogue.
all the support staff that
keeps the industry going
managers
marketing/PR
sales
systems administrators
accounting/business
$50,000
varies
Challenges faced by the Industry (that will impact growth of the industry)
The following are six challenges facing the industry as outlined by Douglas
Lowenstein, President of the Electronic Software Association, in his 2005
State of the Industry Address made at the E3EXPO – one of the largest
annual industry events. According to Lowenstein, if the computer and video
game industry is to become the dominant form of entertainment in the 21st
century, the industry needs to:
1. broaden the game audience by making more games with mass market
appeal
2. create more complete game experiences with more emotional impact,
better stories, and more interesting and complex characters.
3. make games more accessible and easier to play
4. create new financing models that bring in new sources of capital to fund
game development.
5. continue to develop and exploit emerging platforms, specifically online
and mobile.
6. overcome cultural resistance and fear and establish cultural credibility.
{Lowenstein claims that video games today are under attack by politicians
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who are acting to help parents raise their kids safely. We must address
these issues – we ignore them at our own peril.}
Size:
Is the industry workforce need substantial enough to
warrant an organized response from the community colleges?
Again, this was addressed in the high growth section of this summary and
the data needed to answer this question is being sought from the
International Game Developers Association (IGDA.) and key employers.
Relevance: Is the opportunity within the niche of the CC’s (based upon
existing strengths and assets; this will need to be validated
with colleges)?
Yes, especially in the more entry-level areas of game tester, junior
programmer, and visual artists (depending on experience.)
It may even fit for students who already have BA degrees but who are
returning to the community college to get training in order to either change
occupations or who are seeking advancement/promotion in their field by
filling in gaps in their skills sets in the multimedia industry.
One college in the region reports that more than 50% of the digital media
students have BA degrees and the average age is 35. Perhaps these
demographics are mirrored at other colleges in the area and in LA.
Adaptive:
Will it help the colleges to change or adapt? (i.e. become
more market responsive by changing the way they plan and
deliver their service offerings to the community)
Yes, especially since the skills needed for many of the occupations in this
industry are already taught at our community colleges. By adapting digital
and multi-media programs to include curriculum in the specific areas related
to computer and video game production (i.e. audio, quality assurance,
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programming, visual arts software, how the game industry works) community
colleges can prepare students to enter this growing industry.
Leveraging: Are other workforce entities planning around this industry?
Could funding, partnerships or other things be leveraged in
addressing this industry?
Bay Area:
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The San Francisco Mayors Office of Economic Development has made
attracting digital arts companies to San Francisco a major focus. Lucas
Arts is already located at the Presidio in San Francisco.
The Silicon Valley Economic Development Alliance (sveda.org) highlights
video game production as a major emerging industry. SVEDA identifies
seven economic development clusters that they believe are the economic
drivers for the Silicon Valley. One of them is Innovation and Creative
Services and within that cluster, video game production is noted as an
emerging industry. SVEDA cites the falling price of computing power and
technical graphics design tools have enabled producers of games to make
their products more compelling. They state that games are attracting a
market worldwide.
The City of San Jose will host the 2006 edition of the internationally
renowned International Symposium on Electronic Arts (ISEA). ISEA is an
international non-profit organization fostering interdisciplinary academic
discourse and exchange among culturally diverse organizations and
individuals working with art, science and emerging technologies – a global
festival of art on the edge.
Los Angeles:
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The Center of Excellence in Los Angeles partnered with the
Entertainment Economy Institute and the Multimedia Entertainment
Initiative to complete two reports focused on Entertainment. Discussion
has continued to explore the areas of digital entertainment and video
gaming. Additionally, The Entertainment Industry Development Council
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developed a report for the City of Los Angeles Workforce Investment
Board titled, Sectoral Workforce Development Strategies, which focused
on the area of video-gaming in 2002. The COE has meetings planned with
the Executive Director of the LA City WIB to discuss this report and a
partnership for expansion. The Entertainment Economy Institute
expressed interest in developing a follow-up to the 2002 report, but
funding would be a challenge.
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The LA COE is in discussion with the Labor Market Information Division
who may also be interested in exploring this project. They assisted in
identifying SOC areas where we may find workers engaged in videogaming (See attachment 1). This includes a list of “other industries”
these workers are also found in.
The Los Angeles Economic Development Corporation is presenting a
forecast Friday 11/4/05, and the COE will be attending to learn more
about the potential for this area and possibly identify additional
strategic opportunities.
Statewide:
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The CCCEWD Multimedia and Entertainment Centers develop and deliver
instruction allowing students and working professionals to achieve artistic
excellence and develop technological expertise needed in the
communications, entertainment and interactive learning industries.
Possible Next Steps:
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Contact computer and video game industry associations to get job growth
projections for the industry. {Note: IGDA has been contacted, but has
no data on job growth projections (as of 11/3/05.). IGDA does have data
on the demographic profile of the game industry workforce as it exists
currently.}
Contact key employers to get information on projected job growth and
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hiring trends. Electronic Arts, Lucas Arts, Sony Computer Entertainment
America, Nintendo and Microsoft are the major players in the industry
and would be likely suspects.
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Contact faculty at Bay Area and LA colleges with multimedia programs to
determine their industry connections in order to facilitate capturing data
on job growth projections.
Key Employer profiles:
Electronic Arts, the world’s leading independent developer and publisher of interactive
entertainment software for personal computers and advanced entertainment systems such
as the PlayStation®2 Computer Entertainment System, the PlayStation®, Xbox™ video
game console from Microsoft, the Nintendo GameCube™ and the Game Boy® Advance. Since
its inception, EA has garnered more than 700 awards for outstanding software in the U.S.
and Europe.
Sony Corporation of America, based in New York City, is the U.S. subsidiary of Sony
Corporation, headquartered in Tokyo. Sony is a leading manufacturer of audio, video,
communications, and information technology products for the consumer and professional
markets. Its music, motion picture, television, computer entertainment, and online
businesses make Sony one of the most comprehensive entertainment companies in the world.
Sony's principal U.S. businesses include Sony Electronics Inc., Sony Pictures Entertainment,
Sony Computer Entertainment America Inc., and a 50% interest in SONY BMG Music
Entertainment, one of the largest recorded music companies in the world. Sony recorded
consolidated annual sales of approximately $67 billion for the fiscal year ended March 31,
2005, and it employs 151,400 people worldwide. Sony's consolidated sales in the U.S. for the
fiscal year ended March 31, 2005 were $18.4 billion.
LucasArts is a leading publisher and developer of interactive entertainment software for
video game console systems and personal computers. The company was founded by filmmaker
George Lucas to provide an interactive element to his vision of a state-of-the-art, multifaceted entertainment company. Since its inception in 1982, LucasArts has continually
been heralded for its focus on creating rich, immersive worlds for players to discover.
LucasArts games continually receive critical acclaim and attain commercial success, with the
company’s products often earning Game of the Year honors, including multiple awards from
the Academy of Interactive Arts & Sciences. Today, LucasArts continues to advance the
art of game design, while still adhering to its original design philosophy: to create games
that inspire, challenge and engage players. Consistent with Lucasfilm’s movie heritage, each
game combines vital film elements – compelling storytelling, painstaking character
development and vivid settings – with interactivity or “gameplay” acting as the element that
distinguishes games from more traditional, linear mediums.
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Nintendo of America is worldwide leader and innovator in the creation of
interactive entertainment, Nintendo manufactures and markets hardware and
software for its popular home video game systems -- Game Boy®, Nintendo®
64, Game Boy Advance and the GAMECUBE. Since the release of its first home
video game system in 1985, Nintendo has sold over 2 billion video games
worldwide, creating enduring industry icons such as Mario and Donkey Kong and
launching such franchises as Zelda and Pokemon. As a wholly owned subsidiary,
Nintendo of America, Inc. (based in Redmond, WA) serves as headquarters for
Nintendo's operations in the Western Hemisphere.
Microsoft is an established player in the rapidly growing gaming industry. Microsoft Games
Studios consists of 14 separate studios spread over four major cities that develop games
for the PC, Xbox, and online platforms. Each studio is its own entity, focused on its own
particular genre (racing, action/adventure, sports, flight simulation, etc.) and displaying its
own unique personality. A key attraction is Xbox, the Microsoft video game system that
brings dynamic power to gaming and home entertainment. Xbox empowers game artists by
giving them the technology to fulfill their creative visions and construct games that blur the
lines between fantasy and reality. Microsoft is looking for experienced game developers,
artists, producers, testers, audio designers, motion-capture specialists, and designers. We
provide the resources; you provide the imagination, creativity, and inspiration.
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Attachment A:
LMID Projections:
California Employment Development Department >> Labor Market Information >> Staffing Patterns Search Page
Employment Development Department
Labor Market Information
List of Industries Employing Multi-Media Artists and Animators
The following industries employ Multi-Media Artists and Animators , SOC Code 27-1014 (3).
The experience/education usually required by most employers for this occupation is Work
Experience, Plus a Bachelor's or Higher (4). This list is sorted by the 2002 employment
from largest to smallest. Return to the Search Page.
Additional Resources for Career Development
Employment in California (1)
Numeric
2002
2012
Industry (NAICS) (2)
Change
Motion Picture and Video Industries (NAICS 512100)
3,000
4,000
1,000
Software Publishers (NAICS 511200)
1,400
2,100
700
Computer Systems Design and Rel Services (NAICS 541500)
1,000
1,100
100
Advertising and Related Services (NAICS 541800)
500
500
0
ISPs and Web Search Portals (NAICS 518100)
300
400
100
Radio and Television Broadcasting (NAICS 515100)
300
300
0
Specialized Design Services (NAICS 541400)
200
300
100
Independent Artists/Writers/Performers (NAICS 711500)
100
100
0
Employment Services (NAICS 561300)
100
100
0
Telecommunications Resellers (NAICS 517300)
100
100
0
Employment in California (1)
Numeric
2002
2012
Industry (NAICS) (2)
Change
Newspaper, Book, & Directory Publishers (NAICS 511100)
100
100
0
Data Notes:
(1) Source: These data come from the Industry and Occupation Employment Projections
program of the Employment Development Department. All employment figures have been
rounded to the nearest 100. See the Occupational Projections - Introduction and Methods and
the Industry Projections - Introduction and Methods for more information. Some
occupation/industry combinations may not be included to protect employer confidentiality or
because the base survey resulted in a large standard error.
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Employment Development Department
Labor Market Information
List of Industries Employing Computer Software Engineers, Systems
Software
The following industries employ Computer Software Engineers, Systems Software , SOC
Code 15-1032 (3). The experience/education usually required by most employers for this
occupation is Bachelor's Degree (4). This list is sorted by the 2002 employment from
largest to smallest. Return to the Search Page.
Additional Resources for Career Development
Employment in California (1)
Numeric
2002
2012
Industry (NAICS) (2)
Change
Computer Systems Design and Rel Services (NAICS 541500)
13,600 23,000
9,400
Software Publishers (NAICS 511200)
4,900
8,200
3,300
Computers and Peripheral Equipment (NAICS 334100)
3,800
4,200
400
Scientific Research and Development Svc (NAICS 541700)
3,800
5,100
1,300
Electronic Instrument Manufacturing (NAICS 334500)
2,800
3,400
600
Semiconductor and Electronic Components (NAICS 334400)
2,200
2,700
500
ISPs and Web Search Portals (NAICS 518100)
2,100
3,100
1,000
Communications Equipment Manufacturing (NAICS 334200)
1,400
1,700
300
Management of Companies and Enterprises (NAICS 551100)
1,400
1,900
500
Telecommunications Resellers (NAICS 517300)
1,200
1,400
200
Employment in California (1)
Numeric
2002
2012
Industry (NAICS) (2)
Change
Motion Picture and Video Industries (NAICS 512100)
1,200
1,700
500
Architectural and Engineering Services (NAICS 541300)
1,100
1,300
200
Employment Services (NAICS 561300)
1,000
2,100
1,100
Electronics and Appliance Stores (NAICS 443000)
900
1,200
300
Commercial Goods Merchant Wholesalers (NAICS 423400)
800
1,100
300
Nondepository Credit Intermediation (NAICS 522200)
700
900
200
Data Processing and Related Services (NAICS 518200)
700
900
200
Educational Services (NAICS 611000)
700
900
200
Management & Technical Consulting Svc (NAICS 541600)
400
600
200
Electronic Markets and Agents/Brokers (NAICS 425000)
400
600
200
Employment in California (1)
Numeric
2002
2012
Industry (NAICS) (2)
Change
State Government (NAICS 999200)
400
500
100
Accounting and Bookkeeping Services (NAICS 541200)
300
400
100
Commercial & Service Industry Machinery (NAICS 333300)
200
200
0
Security & Commodity Investment Activity (NAICS 523100)
200
200
0
Wireless Telecommunications Carriers (NAICS 517200)
200
400
200
Local Government (NAICS 999300)
200
200
0
Wired Telecommunications Carriers (NAICS 517100)
200
200
0
Legal Services (NAICS 541100)
100
100
0
Other General Purpose Machinery Mfg (NAICS 333900)
100
100
0
Machinery & Equipment Rental & Leasing (NAICS 532400)
100
200
100
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Industry (NAICS) (2)
Offices of Real Estate Agents & Brokers (NAICS 531200)
Audio and Video Equipment Manufacturing (NAICS 334300)
Other Financial Investment Activities (NAICS 523900)
Medical Equipment and Supplies Mfg (NAICS 339100)
Industrial Machinery Manufacturing (NAICS 333200)
Activities Rel to Credit Intermediation (NAICS 522300)
Electric Goods Merchant Wholesalers (NAICS 423600)
Misc Nondurable Goods Merchant Whsle (NAICS 424900)
Magnetic Media Manufacture & Reproducing (NAICS 334600)
Other Miscellaneous Manufacturing (NAICS 339900)
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Employment in California (1)
Numeric
2002
2012
Change
100
100
0
100
100
0
100
100
0
100
100
0
100
100
0
100
200
100
100
100
0
100
100
0
100
100
0
0
100
100