Video Games: California’s Next Economic Level

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U.s. Representatives Darrell Issa (R-49) and Scott Peters (D-52) recently engaged in a refreshing show of bipartisanship, appearing together at the most recent San Diego Comic-Con to discuss the importance of a strong technology sector.

Other policymakers in California – at both the state and federal level – should follow their example. One issue that should unite both parties in today’s frequently partisan political climate is the booming U.S. video game industry and its numerous economic benefits.

It’s an electrifying, engaging, and visionary entertainment powerhouse that adds $30.4 billion in consumer spending to the national economy. The industry adds $8 billion to the California’s economy, with Los Angeles a major hub.

California overall is home to more video game companies (933), college video game programs (77), and politically engaged gamers (170,365) than any other state in the country. The industry provides jobs for 220,000 Americans, more than half of which (114,000) are here in California, and industry employment is growing at more than double the rate of the U.S. job market.

Jobs in the video game industry tend to be relatively high-paying. The average compensation for industry employees in California is $113,454 per year – far ahead of the state’s median household income of $64,500. And a workplace well-being survey by the Higher Education Video Game Alliance indicates that graduates working in the industry are thriving.

The economic benefits of the industry will only become more significant as smartphones, streaming services, and innovative console designs continue to expand where and how we can enjoy video games.

Industry research indicates that more than two-thirds of U.S. households own a device they use to play video games, and there are roughly two gamers per game-playing household. The average age of these gamers is 35, but they span all ages and genders – 26 percent of the regular game-playing population is age 50 or older, and 42 percent is female.

A passionate and diverse community of gamers means the industry generates billions of dollars and provides hundreds of thousands of jobs for Americans of all political affiliations. Policymakers in California looking for a bipartisan solution to encourage job creation and economic growth cam find opportunity in the video game industry. We can lead the way forward to the next level of economic success for California through policies that grow high-tech jobs and innovation, advance free and fair trade, maintain privacy rights, ensure data integrity and security, and support First Amendment principals.

We can increase opportunities for California residents and grow the video game industry by leaps and bounds.

Trade policies on the national level hold the potential to reduce barriers and include strengthen intellectual property protections and enforcement – moves that would drive more growth in an already fast-growing industry.

An attractive tax incentive package at the state level could protect California’s position as the number one state for video game companies and jobs.

The video game industry is a quintessentially Californian industry – it started in California and combines Hollywood entertainment with Silicon Valley tech innovation – the state must be an active supporter of the industry if it wants to remain number one. Twenty-one other states now have tax incentives for the video game industry, luring development jobs to their communities.

The annual growth rate of employment in the video game industry in states such as Texas (.93 percent) and New York (.85 percent) is well above the annual growth rate in California (.68 percent), and at 1.28 percent, the annual growth rate in Colorado is almost double what it is in California.

Our industry has revolutionized storytelling, connected billions around the world through online games, and taken virtual reality mainstream. We want to bring that same explosive innovation to communities across California. Creating dynamic, high-paying jobs is no game, but boosting California’s video game economy is a sure way to do it.

Michael D. Gallagher is president and chief executive of the Entertainment Software Association in Washington, D.C.

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