Part of a series on:
Video game industry
Activities/jobs Game art design Game design Game development / Game developer Game modification Game producer Game programming / Game programmer Game publisher Game studies Game testing Game journalism Level design
Types Adult game Casual game Indie game Non-game Interactive art Interactive movie Nonviolent video game Serious game Advergame Art game Edugame Exergame Traditional game
Topics Digital rights management (DRM) Outsourcing Software license Software license agreement (EULA)
Lists List of indie game developers List of video game developers List of video game industry people List of video game publishers List of video game websites
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The video game industry (often referred to as interactive entertainment) is the economic sector involved with the development, marketing and sales of video games. It encompasses dozens of job disciplines and employs thousands of people worldwide.

Overview[link]

Considered by some as a curiosity in the mid-1970s, the computer and video game industries have grown from focused markets to mainstream. They took in about US$9.5 billion in the US in 2007, 11.7 billion in 2008, and 25.1 billion in 2010 (ESA annual report).

Modern personal computers owe many advancements and innovations to the game industry: sound cards, graphics cards and 3D graphic accelerators, CD ROM and DVD-ROM drives, are a few of the more notable improvements.

Sound cards were developed for addition of digital-quality sound to games and only later improved for music and audiophiles.^[1] Early on, graphics cards were developed for more colors.^{[citation needed]} Later, graphics cards were developed for graphical user interfaces (GUIs) and games. GUIs drove the need for high resolution,^{[citation needed]} games drove 3D acceleration.^{[citation needed]} They also are one of the only pieces of hardware to allow multiple hookups (such as with SLI or CrossFire graphics cards).^{[citation needed]} CD- and DVD-ROMs were developed for mass distribution of media in general, however the ability to store more information on cheap easily distributable media was instrumental in driving their ever higher speeds.^{[citation needed]}

Modern games are among the most demanding of applications on PC resources. Many of the high-powered personal computers are purchased by gamers who want the fastest equipment to power the latest cutting-edge games.^{[citation needed]} Thus, the inertia of CPU development is due in part to this industry whose games demand faster processors than business or personal applications.^{[citation needed]}

Game industry value chain[link]

Ben Sawyer of Digitalmill observes that the game industry value chain is made up of six connected and distinctive layers:

1. Capital and publishing layer: involved in paying for development of new titles and seeking returns through licensing of the titles.
2. Product and talent layer: includes developers, designers and artists, who may be working under individual contracts or as part of in-house development teams.
3. Production and tools layer: generates content production tools, game development middleware, customizable game engines, and production management tools.
4. Distribution layer: or the "publishing" industry, involved in generating and marketing catalogs of games for retail and online distribution.
5. Hardware (or Virtual Machine or Software Platform) layer: or the providers of the underlying platform, which may be console-based, accessed through online media, or accessed through mobile devices such as smartphones. This layer now includes non-hardware platforms such as virtual machines (e.g. Java or Flash), or software platforms such as browsers or even further Facebook, etc.
6. End-users layer: or the users/players of the games.^[2]

Disciplines[link]

The game industry employs those experienced in other traditional businesses, but some have experience tailored to the game industry. For example, many recruiters target just game industry professionals.^{[citation needed]} Some of the disciplines specific to the game industry include: game programmer, game designer, level designer, game producer, game artist and game tester. Most of these professionals are employed by video game developers or video game publishers. However, many hobbyists also produce computer games and sell them commercially.^{[citation needed]} Recently^[when?] game developers have begun to employ those with extensive or long-term experience within the modding communities.

History[link]

1970s[link]

The video game industry began in 1971 with the release of the arcade game, Computer Space. The following year, Atari, Inc. released the first commercially successful video game, Pong, the original arcade version of which sold over 19,000 arcade cabinets.^[3] That same year saw the introduction of video games to the home market with the release of the early video game console, the Magnavox Odyssey. However, both the arcade and home markets would be dominated by Pong clones, which flooded the market and led to the video game crash of 1977. The crash eventually came to an end with the success of Taito's Space Invaders, released in 1978, sparking a renaissance for the video game industry and paving the way for the golden age of video arcade games.^[4] The game's success inspired arcade machines to become prevalent in mainstream locations such as shopping malls, traditional storefronts, restaurants and convenience stores during the golden age.^[5] Space Invaders would go on to sell over 360,000 arcade cabinets worldwide,^[6] and by 1982, generate a revenue of $2 billion in quarters,^[7][8] equivalent to $4.6 billion in 2011.^[9]

Soon after, Space Invaders was licensed for the Atari VCS (later known as Atari 2600), becoming the first "killer app" and quadrupling the console's sales.^[10] The success of the Atari 2600 in turn revived the home video game market during the second generation of consoles, up until the North American video game crash of 1983.^[11] By the end of the 1970s, the personal computer game industry began forming from a hobby culture, when personal computers just began to become widely available. The industry grew along with the advancement of computing technology, and often drove that advancement.^{[citation needed]}

1980s[link]

The early 1980s saw the golden age of video arcade games reach its zenith. The total sales of arcade video game machines in North America increased significantly during this period, from $50 million in 1978 to $900 million by 1981,^[12] with the arcade video game industry's revenue in North America tripling to $2.8 billion in 1980.^[13] By 1981, the arcade video game industry was generating an annual revenue of $5 billion in North America,^[4][14] equivalent to $12.3 billion in 2011.^[9] In 1982, the arcade video game industry reached its peak, generating $8 billion in quarters,^[15] equivalent to over $18.5 billion in 2011,^[9] surpassing the annual gross revenue of both pop music ($4 billion) and Hollywood films ($3 billion) combined at that time.^[15] This was also nearly twice as much revenue as the $3.8 billion generated by the home video game industry that same year; both the arcade and home markets combined add up to a total revenue of $11.8 billion for the video game industry in 1982,^[15] equivalent to over $27.3 billion in 2011.^[9] The arcade video game industry would continue to generate an annual revenue of $5 billion in quarters through to 1985.^[16] The most successful game of this era was Namco's Pac-Man, released in 1980, which would go on to sell over 350,000 cabinets,^[17] and within a year, generate a revenue of more than $1 billion in quarters;^[18] in total, Pac-Man is estimated to have grossed over 10 billion quarters ($2.5 billion) during the 20th century,^[18][19] equivalent to over $3.4 billion in 2011.^[9]

The early part of the decade saw the rise of home computing, and home-made games, especially in Europe (with the ZX Spectrum) and Asia (with the NEC PC-88 and MSX). This time also saw the rise of video game journalism, which was later expanded to include covermounted cassettes and CDs. In 1983, the North American industry crashed due to the production of too many badly developed games (quantity over quality), resulting in the fall of the North American industry. The industry would eventually be revitalized by the release of the Nintendo Entertainment System, which resulted in the home console market being dominated by Japanese companies such as Nintendo,^[2] while a professional European computer game industry also began taking shape with companies such as Ocean Software.^[20] The latter part of the decade saw the rise of the Game Boy handheld system. In 1987, Nintendo lost a legal challenge against Blockbuster Entertainment, which enabled games rentals in the same way as movies.

1990s[link]

The 1990s saw advancements in game related technology. Among the significant advancements were:

• The widespread adoption of CD-based storage and software distribution
• Widespread adoption of GUI-based operating systems, such as the series of Amiga OS, Microsoft Windows and Mac OS
• Advancement in 3D graphics technology, as 3D graphic cards became widely adopted, with 3D graphics now the de facto standard for video game visual presentation
• Continuing advancement of CPU speed and sophistication
• Miniaturisation of hardware, and mobile phones, which enabled mobile gaming
• The emergence of the internet, which in the latter part of the decade enabled online co-operative play and competitive gaming

Aside from technology, in the early part of the decade, licenced games became more popular,^[21][22] as did video game sequels.^[23]

The video game industry generated worldwide sales of $19.8 billion in 1993^[24] (equivalent to $31 billion in 2011),^[9] $20.8 billion in 1994^[24] (equivalent to $32 billion in 2011),^[9] and an estimated $30 billion in 1998^[25] (equivalent to $41.5 billion in 2011).^[9] In the United States alone, in 1994, arcades were generating $7 billion^[26] in quarters (equivalent to $11 billion in 2011)^[9] while home console game sales were generating revenues of $6 billion^[26] (equivalent to $9 billion in 2011).^[9] Combined, this was nearly two and a half times the $5 billion revenue generated by movies in the United States at the time.^[26]

2000s[link]

Today, the video game industry is a juggernaut of development; profit still drives technological advancement which is then used by other industry sectors. Though maturing, the video game industry is still very volatile, with third-party video game developers quickly cropping up, and just as quickly, going out of business.^{[citation needed]}. Nevertheless, many casual games and indie games have been developed and many have become popular and successful, such as Braid, Limbo, or Minecraft. Games are also made for mobile phones and social networking sites. For example, a Facebook game developer, Zynga, has raised in excess of 300 million^{[clarification needed]}. Another great example of mobile gaming would include the iOS and Android devices.^[27]

2010s[link]

Economics[link]

Early on, development costs were minimal, and video games could be quite profitable. Games developed by a single programmer, or by a small team of programmers and artists, could sell hundreds of thousands of copies each. Many of these games only took a few months to create, so developers could release several titles each year. Thus, publishers could often be generous with benefits, such as royalties on the games sold. Many early game publishers started from this economic climate, such as Origin Systems, Sierra Entertainment, Capcom, Activision and Electronic Arts.

As computing and graphics power increased, so too did the size of development teams, as larger staffs were needed to address the ever increasing graphical and programming complexities. Now budgets can easily reach millions of dollars, even if middleware and pre-built game engines are used. Most professional games require one to three years to develop, further increasing the strain on budgets.

Some developers are turning to alternative production and distribution methods, such as online distribution, to reduce costs.

Today, the video game industry has a major impact on the economy through the sales of major systems and games such as, Call of Duty: Black Ops, which took in over USD$650 million of sales in the game's first five days, which set a five-day global record for a movie, book or videogame.^[28] The game's income was more than the opening weekend of Spider-Man 3 and the previous title holder for a video game Halo 3.^[29] Many individuals have also benefited from the economic success of video games including the former chairman of Nintendo and Japan's third richest man: Hiroshi Yamauchi.^[30]

Practices[link]

Video game industry practices are similar to those of other entertainment industries (e.g. the music recording industry), but the video game industry in particular has been accused of treating its development talent poorly. This promotes independent development, as developers leave to form new companies and projects. In some notable cases, these new companies grow large and impersonal, having adopted the business practices of their forebears, and ultimately perpetuate the cycle.

However, unlike the music industry, where modern technology has allowed a fully professional product to be created extremely inexpensively by an independent musician, modern games require increasing amounts of manpower and equipment. This dynamic makes publishers, who fund the developers, much more important than in the music industry.

Breakaways[link]

A particularly famous case is the "original" independent developer Activision, founded by former Atari developers. Activision grew to become the world's second largest game publisher.^[31] In the mean time, many of the original developers left to work on other projects. For example, founder Alan Miller left Activision to start another video game development company, Accolade (now Atari née Infogrames).

Activision was popular among developers for giving them credit in the packaging and title screens for their games, while Atari disallowed this practice. As the video game industry took off in the mid-1980s, many developers faced the more distressing problem of working with fly-by-night or unscrupulous publishers that would either fold unexpectedly or run off with the game profits.

Economics[link]

In 2004, the U.S. game industry as a whole was worth USD$10.3 billion.^[32] However, economic problems remain today with regard to publisher-developer contracts (see copyright: transfer of rights).

In June 2011, the global video game market was valued at US$65 billion.^[33]

Piracy[link]

The industry claims software piracy to be a big problem, and take measures to counter this.^[34] However, digital rights management and other measures have proved noticeably unpopular with gamers.^[35]

Creative control[link]

On various Internet forums, some gamers have expressed disapproval of publishers having creative control since publishers are more apt to follow short-term market trends rather than invest in risky but potentially lucrative ideas. On the other hand, publishers may know better than developers what consumers want. The relationship between video game developers and publishers parallels the relationship between recording artists and record labels in many ways. But unlike the music industry, which has seen flat or declining sales in the early 2000s,^[36][37][38] the video game industry continues to grow.^[39] Also, personal computers have made the independent development of music almost effortless, while the gap between an independent game developer and the product of a fully financed one grows larger.

In the computer games industry, it is easier to create a startup, resulting in many successful companies. The console games industry is a more closed one, and a game developer must have up to three licenses from the console manufacturer:

1. A license to develop games for the console
2. The publisher must have a license to publish games for the console
3. A separate license for each game

In addition, the developer must usually buy development systems from the console manufacturer in order to even develop a game for consideration, as well as obtain concept approval for the game from the console manufacturer. Therefore, the developer normally has to have a publishing deal in place before starting development on a game project, but in order to secure a publishing deal, the developer must have a track record of console development, something which few startups will have.

Alternatives[link]

An alternative method for publishing video games is to self-publish using the shareware or open source model over the Internet. However, it remains to be seen whether freely made and distributed games can survive in the era of multi-million dollar production.

Japanese video game industry practices[link]

The Japanese video game industry is markedly different from the industry in North America, Europe and Australia.

Generally, games have a greater market share of total entertainment in Japan than in the West.^{[citation needed]} Japan has created some of the largest and most expensive titles ever made, such as the Shenmue, Final Fantasy, Metal Gear and Mario series of games.

Arcades[link]

Video game arcades are still relatively popular in Japan; for every arcade game released in the US, nine are released in Japan.^{[citation needed]} The history of the Japanese arcade is very significant in the story of the decline of the American arcade, and in the shape of game design in general.

Media[link]

Consoles and arcade games are the main media for Japanese game design; PC games are nowhere near as popular.^{[citation needed]} This necessarily dictates that there are fewer independently developed games coming from Japan, as it is much harder to develop independently for a console than it is for a PC.^{[citation needed]}

Development environment[link]

The structure and culture of a Japanese game developer is different from a western one. Throughout the history of Japanese game design, many developers have seen fit to remain mostly anonymous, even using pseudonyms to a large degree in video game credits.^{[citation needed]}

Also, the division in labor for video game development is different. For example, Japanese game design teams had a dedicated designer (which they called a "director") much earlier than American design teams adopted the practice.^{[citation needed]} Secondly, Japanese game designers throughout history generally had far more people working on a particular game than a comparable western design team. For example, Street Fighter 2 (1991), a Japanese title, had almost one artist working on every character in the game, plus two programmers and a musician, with the result being a team of twenty or more people. Mortal Kombat (1992), a comparable American title, was developed by four people: a programmer, an artist, a musician, and a background artist.^{[citation needed]}

Ubisoft Montreal

Video game industry in Canada[link]

Canada has the third largest video game industry in terms of employment numbers.^[40] The video game industry has also been booming in Montreal since 1997, coinciding with the opening of Ubisoft Montreal.^{[citation needed]} Recently, the city has attracted world leading game developers and publishers studios such as Ubisoft, EA, Eidos Interactive, Artificial Mind and Movement, Bioware, and Strategy First, mainly because video games jobs have been heavily subsidized by the provincial government. Every year, this industry generates billions of dollars and thousands of jobs in the Montreal area.^{[citation needed]} Vancouver has also developed a particularly large cluster of video game developers, the largest of which, Electronic Arts, employs over two thousand people. The Assassins Creed series, along with the Tom Clancy series and more recently Rainbow Six, have all been produced in Canada and have achieved worldwide success.

UK video game industry practices[link]

The UK industry is the third largest in the World in terms of developer success and sales of hardware and software by country alone but fourth behind Canada in terms of people employed.^[40] In recent years some of the studios have become defunct or been purchased by larger companies such as LittleBigPlanet developer, Media Molecule^[41] and Codemasters.^[42] Though the country houses many of the world's most successful franchises such as Tomb Raider, Grand Theft Auto','Fable, Dirt and Total War, the country is trying to find its identity, with many of the games without any cultural influence coming from the UK, with most influence derived from North America.^{[clarification needed][citation needed]}

The country also went without tax relief until the 21st March 2012^[43] when the British government changed its mind on tax relief for UK developers, which without, meant most of the talented development within the UK may move overseas for more profit, along with parents of certain video game developers which would pay for having games developed in the UK. The industry trade body TIGA estimates that it will increase the games development sector’s contribution to UK GDP by £283 million, generate £172 million in new and protected tax receipts to HM Treasury, and could cost just £96 million over five years.^[44] Before the tax relief was introduced there was a fear that the UK games industry could fall behind other leading game industries around the world such as France and Canada, of which Canada overtook the UK in terms of job numbers in the industry in 2010.^[45]

Latest trends in the game industry[link]

A fairly recent practice, since the mid-1990s, of the video game industry is the rise of game players as developers of game content. The rise of video game players as fourth-party developers of game content allows for more open source models of game design, development and engineering. Game players create user modifications (mods), which in some cases become just as popular, maybe even more popular, as the original game created. An example of this is the game Counter-strike, which began as a mod of the video game Half-Life and eventually became a published game in its own right that was very successful.

While this "community of modifiers" may only add up to approximately 1% of a particular game's user base, the number of those involved will grow as more games offer modifying opportunities (such as, by releasing source code) and as the international community of gamers rise. According to Ben Sawyer, as many as 600,000 established online game community developers will exist by 2012. This will effectively add a new component to the game industry value chain and if it continues to mature it will integrate itself into the overall industry.^[2]

See also[link]

• List of game topics
• Game Developer magazine

References[link]

External links[link]

Look up video game industry in Wiktionary, the free dictionary.

• comp.games.development.industry (Google Groups)
• International Game Developers Association
• Playing the Game: The Economics of the Computer Game Industry (Cambridge University Press)
• Sloperama: Game Biz Advice (Tom Sloper)

Part of a series on:
Video games (browse)
Platforms Arcade game Audio game Console game Video game console Handheld game Mobile game Online game PC game
Genres Action game Shooter game Action-adventure game Adventure game Role-playing game Simulation game Sports game Strategy game
The games List of arcade video games List of best-selling video games List of best-selling video game franchises List of cult video games List of highest-grossing arcade games List of last games released on video game consoles
Development Game AI Game design Interaction design Game programming Level design Video game art Video game graphics Video game music
v t e

This article's references may not meet Wikipedia's guidelines for reliable sources. Please help by checking whether the references meet the criteria for reliable sources. (February 2012)

A video game is an electronic game that involves human interaction with a user interface to generate visual feedback on a video device. The word video in video game traditionally referred to a raster display device,^[1] but following popularization of the term "video game", it now implies any type of display device. The electronic systems used to play video games are known as platforms; examples of these are personal computers and video game consoles. These platforms range from large mainframe computers to small handheld devices. Specialized video games such as arcade games, while previously common, have gradually declined in use. Video games have gone on to become an art form and industry.

The input device used to manipulate video games is called a game controller, and varies across platforms. For example, a controller might consist of only a button and a joystick, while another may feature a dozen buttons and one or more joysticks. Early personal computer games often needed a keyboard for gameplay, or more commonly, required the user to buy a separate joystick with at least one button.^[2] Many modern computer games allow or require the player to use a keyboard and a mouse simultaneously. A few of the most common game controllers are gamepads, mice, keyboards, and joysticks.

Video games typically use additional means of providing interactivity and information to the player. Audio is almost universal, using sound reproduction devices, such as speakers and headphones. Other feedback may come via haptic peripherals, such as vibration or force feedback, with vibration sometimes used to simulate force feedback.

In the early days of cartridge consoles, they were sometimes called TV games.

History[link]

Early games used interactive electronic devices with various display formats. The earliest example is from 1947—a "Cathode ray tube Amusement Device" was filed for a patent on January 25, 1947, by Thomas T. Goldsmith Jr. and Estle Ray Mann, and issued on December 14, 1948, as U.S. Patent 2455992.^[3]

Inspired by radar display tech, it consisted of an analog device that allowed a user to control a vector-drawn dot on the screen to simulate a missile being fired at targets, which were drawings fixed to the screen.^[4]

Other early examples include:

• The NIMROD computer at the 1951 Festival of Britain
• OXO a tic-tac-toe Computer game by Alexander S. Douglas for the EDSAC in 1952
• Tennis for Two, an interactive game engineered by William Higinbotham in 1958
• Spacewar!, written by MIT students Martin Graetz, Steve Russell, and Wayne Wiitanen's on a DEC PDP-1 computer in 1961.

Each game used different means of display: NIMROD used a panel of lights to play the game of Nim,^[5] OXO used a graphical display to play tic-tac-toe ^[6] Tennis for Two used an oscilloscope to display a side view of a tennis court,^[4] and Spacewar! used the DEC PDP-1's vector display to have two spaceships battle each other.^[7]

Nolan Bushnell at the Game Developers Conference in 2011

In 1971, Computer Space, created by Nolan Bushnell and Ted Dabney, was the first commercially sold, coin-operated video game. It used a black-and-white television for its display, and the computer system was made of 74 series TTL chips.^[8] The game was featured in the 1973 science fiction film Soylent Green. Computer Space was followed in 1972 by the Magnavox Odyssey, the first home console. Modeled after a late 1960s prototype console developed by Ralph H. Baer called the "Brown Box", it also used a standard television.^[4][9] These were followed by two versions of Atari's Pong; an arcade version in 1972 and a home version in 1975 that dramatically increased video game popularity.^[10] The commercial success of Pong led numerous other companies to develop Pong clones and their own systems, spawning the video game industry.^[11]

A flood of Pong clones eventually led to the video game crash of 1977, which came to an end with the mainstream success of Taito's 1978 shooter game Space Invaders,^[12] marking the beginning of the golden age of arcade video games and inspiring dozens of manufacturers to enter the market.^[12][13] The game inspired arcade machines to become prevalent in mainstream locations such as shopping malls, traditional storefronts, restaurants, and convenience stores.^[14] The game also became the subject of numerous articles and stories on television and in newspapers and magazines, establishing video gaming as a rapidly growing mainstream hobby.^[15][16] Space Invaders was soon licensed for the Atari VCS (later known as Atari 2600), becoming the first "killer app" and quadrupling the console's sales.^[17] This helped Atari recover from their earlier losses,^[18] and in turn the Atari VCS revived the home video game market during the second generation of consoles, up until the North American video game crash of 1983.^[19] The home video game industry was revitalized shortly afterwards by the widespread success of the Nintendo Entertainment System,^[20] which marked a shift in the dominance of the video game industry from the United States to Japan during the third generation of consoles.^[21]

Overview[link]

Platforms[link]

The term "platform" refers to the specific combination of electronic components or computer hardware which, in conjunction with software, allows a video game to operate.^[22] The term "system" is also commonly used.

In common use a "PC game" refers to a form of media that involves a player interacting with a IBM PC compatible personal computer connected to a video monitor. A "console game" is played on a specialized electronic device that connects to a common television set or composite video monitor. A "handheld" gaming device is a self contained electronic device that is portable and can be held in a user's hands. "Arcade game" generally refers to a game played on an even more specialized type of electronic device that is typically designed to play only one game and is encased in a special cabinet. These distinctions are not always clear and there may be games that bridge one or more platforms. In addition to personal computers, there are multiple other devices which have the ability to play games but are not dedicated video game machines, such as mobile phones, PDAs and graphing calculators.

With the advent of social networking and other online applications hubs, the term "platform" started being used to refer to the online service within which the game is played, regardless of the actual hardware on which it is executed. A game's platform could simply be "Facebook", whether it is played on a Windows PC, Mac, Smart TV, or smartphone.

Genres[link]

A video game, like most other forms of media, may be categorized into genres based on many factors such as method of game play, types of goals, art style and more. Because genres are dependent on content for definition, genres have changed and evolved as newer styles of video games have come into existence. Ever advancing technology and production values related to video game development have fostered more life-like and complex games which have in turn introduced or enhanced genre possibilities (e.g., virtual pets), pushed the boundaries of existing video gaming or in some cases add new possibilities in play (such as that seen with titles specifically designed for devices like Sony's EyeToy). Some genres represent combinations of others, such as massively multiplayer online role-playing games, or, more commonly, MMORPGs. It is also common to see higher level genre terms that are collective in nature across all other genres such as with action, music/rhythm or horror-themed video games.

Classifications[link]

Casual games[link]

Casual games derive their name from their ease of accessibility, simple to understand gameplay and quick to grasp rule sets. Additionally, casual games frequently support the ability to jump in and out of play on demand. Casual games as a format existed long before the term was coined and include video games such as Solitaire or Minesweeper which can commonly be found pre-installed with many versions of the Microsoft Windows operating system.

Examples of genres within this category are hidden object, match three, time management, tetris or many of the tower defense style games. Casual games are generally sold through online retailers such as PopCap, Zylom, Vans Video Games and GameHouse or provided for free play through web portals such as Newgrounds or AddictingGames.

While casual games are most commonly played on personal computers, cellphones or PDAs, they can also be found on many of the on-line console system download services (e.g., Xbox Live, PlayStation Network, or WiiWare).

Serious games[link]

Serious games are games that are designed primarily to convey information or a learning experience of some sort to the player. Some serious games may even fail to qualify as a video game in the traditional sense of the term. Educational software does not typically fall under this category (e.g., touch typing tutors, language learning, etc.) and the primary distinction would appear to be based on the title's primary goal as well as target age demographics. As with the other categories, this description is more of a guideline than a rule.

Serious games are games generally made for reasons beyond simple entertainment and as with the core and casual games may include works from any given genre, although some such as exergames, educational games, or propaganda games may have a higher representation in this group due to their subject matter. These games are typically designed to be played by professionals as part of a specific job or for skill set improvement. They can also be created to convey social-political awareness on a specific subject.

One of the longest running serious games franchises would be Microsoft Flight Simulator first published in 1982 under that name. The United States military uses virtual reality based simulations, such as VBS1 for training exercises,^[23] as do a growing number of first responder roles (e.g., police, fire fighter, EMT).^[24] One example of a non-game environment utilized as a platform for serious game development would be the virtual world of Second Life, which is currently used by several United States governmental departments (e.g., NOAA, NASA, JPL), Universities (e.g., Ohio University, MIT) for educational and remote learning programs^[25] and businesses (e.g., IBM, Cisco Systems) for meetings and training.^[26]

Tactical media in video games plays a crucial role in making a statement or conveying a message on important relevant issues. This form of media allows for a broader audience to be able to receive and gain access to certain information that otherwise may not have reached such people. An example of tactical media in video games would be newsgames. These are short games related to contemporary events designed to illustrate a point.^[27] For example, Take Action Games is a game studio collective that was co-founded by Susana Ruiz and has made successful serious games. Some of these games include Darfur is Dying, Finding Zoe, and In The Balance. All of these games bring awareness to important issues and events in an intelligent and well thought out manner.^[28]

Educational games[link]

On September 23, 2009, U.S. President Barack Obama launched a campaign called "Educate to Innovate" aimed at improving the technological, mathematical, scientific and engineering abilities of American students. This campaign states that it plans to harness the power of interactive games to help achieve the goal of students excelling in these departments.^[29][30] This campaign has stemmed into many new and exciting opportunities for the video game realm and has contributed to many new competitions. Some of these competitions include the Stem National Video Game Competition and the Imagine Cup.^[31][32] Both of these examples are events that bring a focus to relevant and important current issues that are able to be addressed in the sense of video games to educate and spread knowledge in a new form of media. www.NobelPrize.org uses games to entice the user to learn about information pertaining to the Nobel prize achievements while engaging in a fun to play video game.^[33] There are many different types and styles of educational games all the way from counting to spelling to games for kids and games for adults. Some other games do not have any particular targeted audience in mind and intended to simply educate or inform whoever views or plays the game.

Development[link]

Developers use various tools to create video games, here an editor to fine tune the virtual camera system.

Video game development and authorship, much like any other form of entertainment, is frequently a cross-disciplinary field. Video game developers, as employees within this industry are commonly referred, primarily include programmers and graphic designers. Over the years this has expanded to include almost every type of skill that one might see prevalent in the creation of any movie or television program, including sound designers, musicians, and other technicians; as well as skills that are specific to video games, such as the game designer. All of these are managed by producers.

In the early days of the industry, it was more common for a single person to manage all of the roles needed to create a video game. As platforms have become more complex and powerful in the type of material they can present, larger teams have been needed to generate all of the art, programming, cinematography, and more. This is not to say that the age of the "one-man shop" is gone, as this is still sometimes found in the casual gaming and handheld markets,^[34] where smaller games are prevalent due to technical limitations such as limited RAM or lack of dedicated 3D graphics rendering capabilities on the target platform (e.g., some cellphones and PDAs).^{[citation needed]}

With the growth of the size of development teams in the industry, the problem of cost has increased. Development studios need to be able to pay their staff a competitive wage in order to attract and retain the best talent, while publishers are constantly looking to keep costs down in order to maintain profitability on their investment. Typically, a video game console development team can range in sizes of anywhere from 5 to 50 people, with some teams exceeding 100. In May 2009, one game project was reported to have a development staff of 450.^[35] The growth of team size combined with greater pressure to get completed projects into the market to begin recouping production costs has led to a greater occurrence of missed deadlines and unfinished products.^{[citation needed]}

Downloadable content[link]

A newer phenomenon of withholding content from the game and then releasing it at a later date for additional funds not factored into the retail price began with digital video game distribution known as Downloadable Content (also known colloquially as 'DLC'). Studios may choose to utilize this to issue original content after the game is released, such as Rockstar Games with Grand Theft Auto IV, or Bethesda with Fallout 3, yet often opt instead to create content before the game is released to be intentionally withheld, such as Activision and Treyarch with Call of Duty (Despite knowing well public affection for a 'Zombies' game mode, it was shipped with only one map for this game mode, and periodically releases new ones with $10 DLC).^[36][37][38]

Modifications[link]

Many games produced for the PC are designed such that technically oriented consumers can modify the game. These mods can add an extra dimension of replayability and interest. Developers such as id Software, Valve Software, Crytek, Bethesda, Epic Games and Blizzard Entertainment ship their games with some of the development tools used to make the game, along with documentation to assist mod developers. The Internet provides an inexpensive medium to promote and distribute mods, and they may be a factor in the commercial success of some games.^[39] This allows for the kind of success seen by popular mods such as the Half-Life mod Counter-Strike.

Cheating[link]

Cheating in computer games may involve cheat codes and hidden spots implemented by the game developers,^[40][41] modification of game code by third parties,^[42][43] or players exploiting a software glitch. Modifications are facilitated by either cheat cartridge hardware or a software trainer.^[42] Cheats usually make the game easier by providing an unlimited amount of some resource; for example weapons, health, or ammunition; or perhaps the ability to walk through walls.^[41][42] Other cheats might give access to otherwise unplayable levels or provide unusual or amusing features, like altered game colors or other graphical appearances.

Glitches[link]

Software errors not detected by software testers during development can find their way into released versions of computer and video games. This may happen because the glitch only occurs under unusual circumstances in the game, was deemed too minor to correct, or because the game development was hurried to meet a publication deadline. Glitches can range from minor graphical errors to serious bugs that can delete saved data or cause the game to malfunction. In some cases publishers will release updates (referred to as patches) to repair glitches. Sometimes a glitch may be beneficial to the player, these are often referred to as exploits.

Easter eggs[link]

Easter eggs are hidden messages or jokes left in games by developers that are not part of the main game.

Theory[link]

Although departments of computer science have been studying the technical aspects of video games for years, theories that examine games as an artistic medium are a relatively recent development in the humanities. The two most visible schools in this emerging field are ludology and narratology. Narrativists approach video games in the context of what Janet Murray calls "Cyberdrama". That is to say, their major concern is with video games as a storytelling medium, one that arises out of interactive fiction. Murray puts video games in the context of the Holodeck, a fictional piece of technology from Star Trek, arguing for the video game as a medium in which we get to become another person, and to act out in another world.^[44] This image of video games received early widespread popular support, and forms the basis of films such as Tron, eXistenZ and The Last Starfighter.

Ludologists break sharply and radically from this idea. They argue that a video game is first and foremost a game, which must be understood in terms of its rules, interface, and the concept of play that it deploys. Espen J. Aarseth argues that, although games certainly have plots, characters, and aspects of traditional narratives, these aspects are incidental to gameplay. For example, Aarseth is critical of the widespread attention that narrativists have given to the heroine of the game Tomb Raider, saying that "the dimensions of Lara Croft's body, already analyzed to death by film theorists, are irrelevant to me as a player, because a different-looking body would not make me play differently... When I play, I don't even see her body, but see through it and past it."^[45] Simply put, ludologists reject traditional theories of art because they claim that the artistic and socially relevant qualities of a video game are primarily determined by the underlying set of rules, demands, and expectations imposed on the player.

While many games rely on emergent principles, video games commonly present simulated story worlds where emergent behavior occurs within the context of the game. The term "emergent narrative" has been used to describe how, in a simulated environment, storyline can be created simply by "what happens to the player."^[46] However, emergent behavior is not limited to sophisticated games. In general, any place where event-driven instructions occur for AI in a game, emergent behavior will exist. For instance, take a racing game in which cars are programmed to avoid crashing, and they encounter an obstacle in the track: the cars might then maneuver to avoid the obstacle causing the cars behind them to slow and/or maneuver to accommodate the cars in front of them and the obstacle. The programmer never wrote code to specifically create a traffic jam, yet one now exists in the game.

Social aspects[link]

Demographics[link]

The November 2005 Nielsen Active Gamer Study, taking a survey of 2,000 regular gamers, found that the U.S. games market is diversifying. The age group among male players has expanded significantly in the 25–40 age group. For casual online puzzle-style and simple mobile cell phone games, the gender divide is more or less equal between males and females. Females have also been found to show an attraction to online multi-player games where there is a communal experience.^{[citation needed]} More recently there has been a growing segment of female players engaged with the aggressive style of games historically considered to fall within traditionally male genres (e.g., first-person shooters). According to the ESRB almost 41% of PC gamers are women^[47] (see Girl gamer).

When comparing today's industry climate with that of 20 years ago, women and many adults are more inclined to be using products in the industry. While the market for teen and young adult men is still a strong market, it is the other demographics which are posting significant growth. The Entertainment Software Association (ESA) provides the following summary for 2011 based on a study of almost 1,200 American households carried out by Ipsos MediaCT:^[48]

• The average gamer is 37 years old and has been playing for 12 years. Eighty-two percent of gamers are 18 years of age or older.
• Forty-two percent of all players are women and women over 18 years of age are one of the industry's fastest growing demographics.
• Today, adult women represent a greater portion of the game-playing population (37 percent) than boys age 17 or younger (13 percent).
• Twenty-nine percent of game players are over the age of 50, an increase from nine percent in 1999.
• Sixty-five percent of gamers play games with other gamers in person.
• Fifty-five percent of gamers play games on their phones or handheld device.

A 2006 academic study, based on a survey answered by 10.000 gamers, identified the gaymers (gamers that identify as LGBT) as a significant demographic group. ^{[49] [50][51]} A followup survey in 2009 studied the purchase habits and content preferences of people in the group.^[52][53][54]

Based on the study by NPD group in 2011, about 91 percent of kids aged 2–17 play games.^[55]

Multiplayer[link]

Video gaming has traditionally been a social experience. Multiplayer video games are those that can be played either competitively, sometimes in Electronic Sports, or cooperatively by using either multiple input devices, or by hotseating. Tennis for Two, arguably the first video game, was a two player game, as was its successor Pong. The first commercially available game console, the Magnavox Odyssey, had two controller inputs.

Since then, most consoles have been shipped with two or four controller inputs. Some have had the ability to expand to four, eight or as many as 12 inputs with additional adapters, such as the Multitap. Multiplayer arcade games typically feature play for two to four players, sometimes tilting the monitor on its back for a top-down viewing experience allowing players to sit opposite one another.

Many early computer games for non-PC descendant based platforms featured multiplayer support. Personal computer systems from Atari and Commodore both regularly featured at least two game ports. PC-based computer games started with a lower availability of multiplayer options because of technical limitations. PCs typically had either one or no game ports at all. Network games for these early personal computers were generally limited to only text based adventures or MUDs that were played remotely on a dedicated server. This was due both to the slow speed of modems (300-1200-bit/s), and the prohibitive cost involved with putting a computer online in such a way where multiple visitors could make use of it. However, with the advent of widespread local area networking technologies and Internet based online capabilities, the number of players in modern games can be 32 or higher, sometimes featuring integrated text and/or voice chat. MMOs can offer extremely high numbers of simultaneous players; Eve Online set a record with 54,446 players on a single server in 2010.^[56]

Benefits[link]

It has been shown that action video game players have better hand-eye coordination and visuo-motor skills, such as their resistance to distraction, their sensitivity to information in the peripheral vision and their ability to count briefly presented objects, than nonplayers.^[57]

Researchers found that such enhanced abilities could be acquired by training with action games, involving challenges that switch attention between different locations, but not with games requiring concentration on single objects. It has been suggested by a few studies that online/offline video gaming can be used as a therapeutic tool in the treatment of different mental health concerns.^[which?]

In Steven Johnson's book, Everything Bad Is Good for You, he argues that video games in fact demand far more from a player than traditional games like Monopoly. To experience the game, the player must first determine the objectives, as well as how to complete them. They must then learn the game controls and how the human-machine interface works, including menus and HUDs. Beyond such skills, which after some time become quite fundamental and are taken for granted by many gamers, video games are based upon the player navigating (and eventually mastering) a highly complex system with many variables. This requires a strong analytical ability, as well as flexibility and adaptability. He argues that the process of learning the boundaries, goals, and controls of a given game is often a highly demanding one that calls on many different areas of cognitive function. Indeed, most games require a great deal of patience and focus from the player, and, contrary to the popular perception that games provide instant gratification, games actually delay gratification far longer than other forms of entertainment such as film or even many books.^[58] Some research suggests video games may even increase players' attention capacities.^[59]

Learning principles found in video games have been identified as possible techniques with which to reform the U.S. education system.^[60] It has been noticed that gamers adopt an attitude while playing that is of such high concentration, they do not realize they are learning, and that if the same attitude could be adopted at school, education would enjoy significant benefits.^[61] Students are found to be "learning by doing" while playing video games while fostering creative thinking.^[62]

The U.S. Army has deployed machines such as the PackBot and UAV vehicles, which make use of a game-style hand controller to make it more familiar for young people.^[63]

According to research discussed at the 2008 Convention of the American Psychological Association, certain types of video games can improve the gamers' dexterity as well as their ability to problem-solve. A study of 33 laparoscopic surgeons found that those who played video games were 27 percent faster at advanced surgical procedures and made 37 percent fewer errors compared to those who did not play video games. A second study of 303 laparoscopic surgeons (82 percent men; 18 percent women) also showed that surgeons who played video games requiring spatial skills and hand dexterity and then performed a drill testing these skills were significantly faster at their first attempt and across all 10 trials than the surgeons who did not play the video games first.^[64]

Whilst many studies have detected superior mental aptitudes^[which?] amongst habitual gamers, research by Walter Boot at the University of Illinois found that non-gamers showed no improvement in memory or multitasking abilities after 20 hours of playing three different games. The researchers suggested that "individuals with superior abilities are more likely to choose video gaming as an activity in the first place".^[65]Unreliable - Discuss

Controversy[link]

Like related forms of media, computer and video games have been the subject of frequent controversy and censorship, due to the depiction of graphic violence, sexual themes, advergaming (a form of advertising in games), consumption of drugs, consumption of alcohol or tobacco, propaganda, or profanity in some games. Among others, critics of video games often include parents' groups, politicians, organized religious groups, and other advocacy groups. Various games have been accused of causing addiction and even violent behavior,^[66][67] though how much ground this holds is debatable.^[68][69] "Video game censorship" is defined as the use of state or group power to control the playing, distribution, purchase, or sale of video games or computer games. Video game controversy comes in many forms, and censorship is a controversial subject. Proponents and opponents of censorship are often very passionate about their individual views.

Various national content rating organizations, such as the Entertainment Software Ratings Board or ESRB in North America, rate software for certain age groups and with certain content warnings. Some of these organizations are optional industry self-regulation (such as the ESRB), while others are part of national government censorship organizations. Most video games display their rating on the front side of their packaging. However, parents are not always aware of the existence of these ratings. Not all ratings are considered accurate. Organizations such as What They Play and Common Sense Media aim to provide guidance and advice for parents.^[70]

Ratings and censorship[link]

ESRB[link]

The Entertainment Software Rating Board (ESRB) gives videogames maturity ratings based on their content. For example, a game might be rated T for Teen if the game contained obscene words or violence. If a game contains explicit violence or sexual themes, it is likely to receive an M for Mature rating, which means that no one under 17 should play it. There is a rated "A/O" games for "Adults Only" these games have massive violence or nudity. There are no laws that prohibit children from purchasing "M" rated games in the United States. Laws attempting to prohibit minors from purchasing "M" rated games were established in California, Illinois, Michigan, Minnesota, and Louisiana, but all were overturned on the grounds that the establishment of such laws were in violation of a child's First Amendment rights^{[citation needed]}. However, many stores have opted to not sell such games to children anyway. Of course, video game laws vary from country to country. One of the most controversial games of all time, Manhunt 2 by Rockstar Studios, was denied a rating by the ESRB until Rockstar could make the content more suitable for a mature audience.

Video game manufacturers usually exercise tight control over the games that are made available on their systems, so unusual or special-interest games are more likely to appear as PC games. Free, casual, and browser-based games are usually played on available computers, mobile phones, or PDAs.

PEGI[link]

Pan European Game Information (PEGI) is a system that was developed to standardize the game ratings in all of Europe (not just European Union, although the majority are EU members), the current members are: all EU members, except Germany and the 10 accession states; Norway; Switzerland. Iceland is expected to join soon, as are the 10 EU accession states. For all PEGI members, they use it as their sole system, with the exception of the UK, where if a game contains certain material,^[71] it must be rated by BBFC. The PEGI ratings are legally binding in Vienna and it is a criminal offence to sell a game to someone if it is rated above their age.^[72]

Germany: BPjM and USK[link]

Stricter game rating laws mean that Germany does not operate within the PEGI. Instead, they adopt their own system of certification which is required by law. The Unterhaltungssoftware Selbstkontrolle (USK or Voluntary Certification of Entertainment Software) checks every game before release and assigns an age rating to it - either none (white), 6 years of age (yellow), 12 years of age (green), 16 years of age (blue) or 18 years of age (red). It is forbidden for anyone, retailers, friends or parents alike, to allow a child access to a game for which he or she is underage. If a game is particularly violent, it may be referred to the BPjM (Bundesprüfstelle für jugendgefährdende Medien - Federal Verification Office for Child-Endangering Media) who may opt to place it on the Index upon which the game may not be sold openly or advertised in the open media. Unofficially, the titles are not "banned" - adult gamers are still technically free to obtain the titles by other means, although it is still considered a felony to supply these titles to a child.

Commercial aspects[link]

Game sales[link]

A typical retail display (in Geneva, Switzerland) with a large selection of games for several major consoles

The three largest producers of and markets for computer and video games (in order) are North America (US and Canada), Japan and the United Kingdom. Other significant markets include Australia, Spain, Germany, South Korea, Mexico, France and Italy.^[73] Both India and China are considered emerging markets in the video game industry and sales are expected to rise significantly in the coming years. Irish are the largest per capita consumers of video games.^[74]

Sales of different types of games vary widely between these markets due to local preferences. Japanese consumers tend to purchase much more console games than computer games, with a strong preference for games catering to local tastes. Another key difference is that, despite the decline of arcades in the Western world (see Golden age of video arcade games), arcade games remain the largest sector of the Japanese gaming industry. As of 2009, the Japanese gaming industry is worth $20 billion, including $6 billion from arcades, $3.5 billion from console game sales, and $2 billion from mobile game sales.^[75] In South Korea, computer games are generally preferred over console games, especially MMORPG games and real-time strategy games. There are over 20,000 Internet cafés in South Korea where computer games can be played for an hourly charge. Computer games are also popular in China, which has a PC gaming industry worth $6 billion, the largest in the world.^[76] Arcade games are also still a thriving industry in China, though console games have been banned in the country since the early 2000s.^[77]

The NPD Group tracks computer and video game sales in the United States. It reported in 2004 that:

• Console and portable software sales: $6.2 billion, up 8% from 2003^[78]
• Console and portable hardware and accessory sales: $3.7 billion, down 35% from 2003^[78]
• PC game sales: $1.1 billion, down 15% from 2006^[79]

PC games that are digitally distributed either directly or by networks such as Steam are not tracked by the NPD, and Valve does not list sales numbers for games downloaded through their service. Unauthorized distribution is also rampant on the PC.^[80]

These figures are sales in dollars, not units, Unit shipments for each category were higher than the dollar sales numbers indicate, because more software and hardware was discounted than in 2003. But with the release of the next-generation consoles in 2006, these numbers increased dramatically. The game and film industries are also becoming increasingly intertwined, with companies like Sony having significant stakes in both. A large number of summer blockbuster films spawn a companion game, often launching at the same time to share the marketing costs.

The global market for console games has seen an average of 6.9 percent compound annual growth rate and is expected to become a $34.7 billion market in 2012.Online game sales are expected to grow at a larger rate of 16.9 percent, escalating from $6.6 billion in 2008 to $14.4 billion by 2012. The largest channel for growth, however, is in mobile gaming with a growth rate of 19 percent; estimated to grow from $5.6 billion in 2008 to $13.5 billion in four years.^[81]

Criticism[link]

Video games have the problem of regional lockout. In Australia, while most DVD players are sold region-free to accommodate local consumer rights legislation,^[82] video game consoles are still sold fully region protected. Some effort has been made to increase awareness of the issue, specifically to Nintendo of Australia,^[83] in the form of a formal report outlining the issues, published by Aaron Rex Davies.^[84] The report has gone on to gain a lot of attention in the public media.^[85]

Museums[link]

There are many video game museums around the world, for example Museum of Soviet Arcade Machines in Moscow^[86] or Computer Game Museum in Berlin.^[87]

The Smithsonian American Art Museum is running an exhibition on "The Art of Video Games".^[88]

See also[link]

Video games portal

	Book: Video game
Wikipedia books are collections of articles that can be downloaded or ordered in print.

• Outline of video games
• Video game etiquette

Notes[link]