Video game industry in North America - Essay Example

? Video game industry in North America Video game industry in North America Introduction The video game industry in the North American continent is an industry that has offered employment opportunities for many on the global scale through the creation, distribution, and the sale of video game products. Interactive game industry is the other term used in reference to the video game industry as it comprises of thousands of disciplines. The industry developed in the 1970s because of curiosity in which their development shifted from a focused market to a mainstreamed one (Huntemann & Aslinger, 2013). Presently, the video game industry is the most profitable component of the North American economy as it the profits generated from the sale of video game merchandise translates to billions of dollars. Ideally, the advancement in the computer or technology industry draws influence from the video gaming sector as the sector has facilitated significant improvements. For instance, the video game industry influenced the development of sound cards as video game players sought to develop the quality of sound produced but video games. Presently, modern games are a demanding lot as they require advanced applications on personal computers hence influencing the purchase of high quality equipment. Therefore, this essay will delve on the video game industry in North America while focusing on the benefits and disadvantages of the same on the economy and the population. History of the Video game industry in North America Video games developed in North America contribute at least thirty percent of the games in the video game market. With this attribute, the industry that started almost forty decades ago has attracted the interest of many researchers in terms of their impact on the reality of the game players. Many researches have had their focus on the contents of the video games or the production aspects of the same. Ideally, the video game industry has a correlation with the development of the software industry in the North American continent, but the two industries took divergent paths as time progressed. However, the establishment of the video game industry is a subject that has dotted lines as it is not clear whether it started with Russell Steven with his colleagues or Baer Ralph as they developed Magnavox Odyssey and Space wars respectively (Yost, 2005). These two individuals are just among the few that the video game industry cites as the developers of video game consoles in North America. In essence, the game console is the most significant aspect of video games as the device is needful in the running of video games. In definitive terms, the game console is a gaming device that can host numerous games that have different contents and display the contents on a television screen. For instance, the Nintendo 64 was the greatest game console to have hit the video game industry with its release in 1997. On the other hand, video game companies emerged in a period between the 1980s and the 1990s, but the game console sector remained as the principal force in the North American continent. Appendices 1: Comparison between the sales of video game consoles and PC game sales Year Console games Net sales Personal computer Game Sales 2006 231.8 Million pieces 1.2 Million pieces 2007 388.4 Million pieces 5.2 Million pieces 2008 628.5 Million pieces 9.3 Million pieces 2009 602.3 Million pieces 8.8 Million pieces 2010 636 Million pieces 17.6 Million pieces The table asserts that sales in video game console are higher as compared to the sales of PC games making this aspect the object of focus for video game publishers and developers (Tremblay, 2007). Essentially, video game consoles are vital in the maintenance of the existing structures of the North American video game industry. Video game structures in North America As part of the regulations governing this industry, the acquisition of a license from the manufacturer is vital before a game development studio creates a game console. The license is an agreement arrived at by the manufacturer and the video game developer that authorizes the manufacture of cartridges for video games, software, and hardware that are essential in the production of the game. This means that producers of game console have control over the access for those that can access and produce video games. Over time, various game console developers have made advancements to incorporate modern day communication devices like mobile phones. A better-placed example of this would be the i OS applied devices such as iPhones and iPod smart phones that provide access to development tools although there is a maintenance fee attachment to the deployment (Rhee, 2013). However, the devices present threats to the initial hand held game mechanisms in which the testing of the development tools is free through the virtual application stores. On the contrary, the digital influence distribution channel is one of the notable improvements for the North American video game market. Initially, the intent of the digital platform of distribution was to ease the dispatch of game software’s to game users. Both the i OS and Android-OS linked mechanisms had an inclination to the digital channel of distribution. Principally, game consoles are the basis from which video games develop and grow. North America as the hub for video game publication As compared to other countries involved in the video game industry, North America plays homage to renowned video game publishing companies in the world. Some of these video publishing companies include Electronic Arts (EA), THQ, Bethesda Soft works, Microsoft, Take Two among a list of many others whose headquarters are in the North American continent (Plunkett, 2007). This aspect has made the continent be one of the leading continents in terms of video game production across the global market. Never the less, Japan is the leader in the production of game consoles in the world while North America leads the pack in terms of video games manufactured for game consoles (Wolf, 2012). On the contrary, being a game publisher in the video game industry has its risks as they have to make payments upfront to the game manufacturer before the product hits the market (Zackariasson & Wilson, 2012). This means that if the game attracts dismal profits then the publisher endures most of the loss without sharing with the manufacturer. As a counter approach, video game publishers have had to devise ways of curbing such losses through the creation of dependence on specified game franchises. This means that they opt to rely on core products rather than engage with an array of video game franchises that may not deliver as their profits expectations (Johnson, 2013). Conclusion Over time, the risks associated with the video game industry have been on an increase in North America, but this has not dampened the zeal for game manufacturers, developers, and publishers. The history surrounding this industry is one that has influenced innovations and improvement in the computer industry as the two have a direct correlation. On the contrary, the amount of capital injected into the industry surpasses many of the industries in the region as the profits realized are vital to the sustenance of the economy. North America is also a significant arm of the global video game industry as many of the video game publishers have their headquarters in the region. Therefore, this industry has come a long way in the attainment of its stability and significance to the North American economy. References Huntemann, N. B., & Aslinger, B. (2013). Gaming globally: Production, play, and place. Basingstoke: Palgrave Macmillan. Johnson, D. (2013). Media franchising: Creative license and collaboration in the culture industries. Plunkett, J. W. (2007). Plunkett's Engineering and Research Industry Almanac 2007: Engineering and Research Industry Market Research, Statistics, Trends and Leading Companies. Houston: Plunkett Research Press. Rhee, M. Y. (2013). Wireless mobile internet security. Tremblay, V. J. (2007). Industry and firm studies. Armonk, NY [u.a.: Sharpe. Wilson, T. & Zackariasson,P. (2012). The Video Game Industry: Formation, Present, and Future. London: Routlegde. Wolf, M. J. P. (2012). Encyclopedia of video games: the culture, technology, and art of gaming. Santa Barbara, CA [etc.: Greenwood Press. Yost, J. R. (2005). The computer industry. Westport, Conn. [u.a.: Greenwood Press. Appendices O’Donnell, C. (2013). The North American Game Industry. Academia.edu. Retrieved on 23 May 2013 from http://www.academia.edu/2059358/The_North_American_Game_Industry Read More