Entertainment software is one of the fastest growing industries in the U.S. economy. The industry is creating jobs and producing revenue for communities across the nation. In addition, the industry continues to grow as an entertainment medium.
Video Games in the 21st Century: The 2010 Report quantifies in detail the specific contributions of the U.S. entertainment software industry to the nation's economy. It is the second such study conducted by Economists Incorporated and was released by ESA in August, 2010. The study found:
- Growth – From 2005 to 2009, the entertainment software industry's annual growth rate exceeded 10 percent. Over the same period, the entire U.S. economy grew at a rate of less than two percent.
- GDP – In 2009, the entertainment software industry's value added to the U.S. Gross Domestic Product (GDP) was $4.9 billion.
- Employment – The entertainment software industry also continues to grow as a source of employment. For the four-year period of 2005-09, direct employment for the industry grew at an annual rate of 8.6 percent. Currently, computer and video game companies directly and indirectly employ more than 120,000 people in 34 states. The average salary for direct employees is $90,000, resulting in total national compensation of $2.9 billion.
The report also shows that the entertainment software industry provides benefits to individual state economies.
- Top 5 States – California, Texas, Washington, New York and Massachusetts currently have the highest number of video game jobs. Collectively, these areas directly employ over 22,000 workers and post nearly 71 percent of the industry's total direct employment.
- California – California is the largest employer of computer and video game personnel in the nation, accounting for approximately 41 percent of total industry employment nationwide. These companies provided over $2.6 billion in direct and indirect compensation to Californians in 2009. California's computer and video game industry grew by a real annual rate of 11.4 percent from 2005 to 2009, compared to a period of negative growth for the state’s overall economy, and added $2.1 billion to the state economy.
- Other States – Virginia’s computer and video game industry continues to experience tremendous growth, expanding by 77 percent in 2009, and adding $38.5 million to the Commonwealth’s economy. Companies in Oregon have also witnessed a boom in industry growth in recent years, and more than doubled their contribution to the state’s economy from $51.6 million in 2005 to $106 million in 2009.
Following are links to all of the individual state reports: