| The computer and video game industry last year | | | | generated by the industry grew at 10.1 percent per |
| generated jobs for 220,000 people and nearly $9 billion | | | | year. By comparison, motion picture production, |
| in wages and federal and state personal income tax | | | | distribution and allied services sectors, widely |
| revenues, according to a new study on the impact of | | | | considered to be the king of America's entertainment |
| the entertainment software industry on the U.S. | | | | industries, have recognized growth in annual wages of |
| economy released today. | | | | 9.2 percent and employment of 5.2 percent during the |
| The study also found that the industry generated an | | | | same period. |
| additional $10.5 billion in economic activity from the sale | | | | Equally striking, the video game industry job and wage |
| of computer and video game software, and some | | | | growth rates outstripped those of such high-tech |
| related game hardware. | | | | stalwarts as the computer manufacturing industry, |
| This new study clearly dramatizes the growing | | | | consumer electronics and computer storage industries. |
| importance of the video game industry in America's | | | | The study also revealed that the entertainment |
| high-tech sector, said Douglas Lowenstein, president of | | | | software industry is a leader in research and |
| the Interactive Digital Software Association (IDSA), | | | | development. The report shows that the game |
| which commissioned the study by Nathan Associates | | | | software publishing industry devotes 14 percent of its |
| Inc. With the introduction of new advanced game | | | | receipts to research and development compared with |
| machines, surging demand for video game software, | | | | other entertainment industries, which devote 9 to 12 |
| and an expanding base of dedicated and casual game | | | | percent of sales to R&D. |
| players, it's clear that the industry will be a major force | | | | The report, titled Economic Impacts of the Demand for |
| in the American economy for years to come. | | | | Computer and Video Games, captures the complete |
| The detailed study of U.S. Government census and | | | | impact the computer and video game industry has had |
| other economic data shows that sales in the game | | | | on employment, wages and income taxes, in addition |
| software industry in the year 2000 grew at a rate of | | | | to the indirect effects on other industries. The study |
| 14.9 percent per year, more than double the rate of | | | | was authored by Robert Damuth of Nathan |
| growth of the U.S. economy as a whole and far | | | | Associates Inc. and relied on data found in publicly |
| outpacing sales growth in related industries. | | | | available sources, primarily the economic censuses and |
| Moreover, growth in employment, and wages in the | | | | annual surveys of the U.S. Department of Commerce. |
| computer and video game industry between 1995 and | | | | In addition, some data were collected from research |
| 2000 far outpaced growth in other major U.S. | | | | companies as noted in the report. Indirect economic |
| industries. For example, wages generated by the | | | | effects were estimated using economic impact |
| computer and video game industry showed an annual | | | | multipliers provided by the Bureau of Economic |
| growth rate of 17.4 percent, and employment | | | | Analysis, U.S. Department of Commerce. |