A new study from the Entertainment Software Association (ESA) revealed that the video game industry generated $90.3 billion in annual economic output.
At a time of financial uncertainty, the gaming sector has provided a significant boost to the US economy. A new study from the Entertainment Software Association (ESA) revealed that the video game industry generated $90.3 billion in annual economic output and supported an estimated 429,000 jobs nationwide.
In terms of employment, the video game industry directly employs approximately 143,000 people, who average more than $121,000 in annual salaries. In addition, activities related to the industry contribute $12.6 billion in federal, state and local taxes, each year, and add $59.76 billion to the GDP.
The study, Video Games in the 21st Century: The 2020 Economic Impact Report, highlights the positive impact video games have on the US economy through job creation, says ESA President and CEO Stanley Pierre-Louis said.
#VideoGames are a much-needed source of entertainment, stress-relief, and social interaction for millions of Americans. The industry has been an economic leader in the crisis as well, supporting jobs and driving innovation nationwide.
— Entertainment Software Association (@theESA) December 3, 2020
“As a convergence point for leadership in software, hardware, entertainment and creative arts, the video game ecosystem generates the kind of innovation critical to economic growth and this report helps share that story in a new and comprehensive way,” he added. “Video games have emerged as a melding of the two, creating a new form of visual art and entertainment and a new platform for experimentation and innovation in advanced technology development.”
The report also details the impact of the video game industry on technological innovation, such as computation speed, graphics rendering, interface design and haptics, mobile systems design, networking, and software engineering. In addition, video games have become part of mainstream culture, advancing visual arts, creativity, storytelling, and entertainment.
According to the previous ESA study, 2020 Essential Facts About the Video Game Industry, more than 214 million Americans play video games, including 64% of adults and 70% of those under 18 in the US. Meanwhile, the average age of gamers is 35 to 44 years of age.
This year, the video game industry has exploded due largely to COVID-19 lockdowns, however, the economic impact is expected to last far beyond the pandemic as people continue to practice social distancing and embrace gaming as more than just a pastime but as a cultural phenomenon.
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