Video Game Industry Impacts US Economy by $90 Billion in 2019

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The COVID-19 pandemic has affected most people, as well as most businesses, across the world. Businesses have incurred tremendous losses during these uncertain times. However, some industries have benefited during this period and have thrived enormously. One such example is the gaming industry. Although it was a thriving industry even before, the pandemic has boosted its growth. This stellar growth of the video game industry is captured in the latest report from the ESA. The report reveals how the video game industry contributed to the US economy in total economic output and total employment in 2019.

The gaming industry goes all guns blazing

The gaming industry is growing continuously over the years, and, in recent years, the pace has only increased. Increasing internet penetration has fueled this growth as gamers worldwide are now able to create a community and share their learnings. The internet has invoked curiosity among millions of potential gamers and has subsequently helped them update their knowledge and develop skills. Portals such as saintreview have become extremely famous among gamers. It provides detailed information, reviews about various gaming and tech accessories available and gives insights about the latest things happening in the gaming and other industries.

California leads the way 

The ESA’s report mentions that the United States’ video game industry created over $90 billion in total economic output. If we break the output down into states, California is the biggest contributor as it alone makes up for more than half of the output, at $51.8 billion. Washington comes second with an overall contribution of $11.6 billion. Texas, Florida, and New York form the top five, but apart from California and Washington, no other state contributes for $5 billion.

The report also sheds more light on the aspect of employment. ESA’s report states that the video game industry employs around 143,000 people directly but supports 429,000 US jobs. In this aspect, California is the biggest contributor; however, interestingly, its contribution is less than the ratio of its economic output. The video game industry supports 218,090 approximate jobs in the state of California.  Washington comes second again, with 48,808 jobs, while Texas completes the top three with 24,972 jobs. Here too, Florida and New York find a place in the top five.

A reader can dive deeper and get more information about a state’s video game industry details and its subsequent contribution to the overall economy. In California, the state is home to 619 different publishers, developers, and hardware companies. Washington, on the other hand, deploys 151 such publishers, developers, and hardware companies locations.  The case of Oregon could interest a few as it has 42 such locations but has only a total of $247.5 million in economic impact and 1,730 jobs. The data underline the fact that the big publishers are the ones who sway these numbers significantly.

The rise and rise of the gaming industry

Although this data provides highly crucial information about the video game industry and reflects its continuous growth, it has certain limitations. The ESA data misses one important aspect: it does not provide the continued industry data for 2020. Having the data for 2020 would have enabled readers to trace the video game industry’s growth and gain more insights. We would have known whether the increased demand for video games has skyrocketed the industry’s growth or whether the decreased output of games due to delays has lowered the growth.

The video game industry continues its stellar growth. With time, it has ballooned to become something bigger than the film industry, which has been the gold standard for entertainment revenue around the globe for a prolonged period.  With more than 214 million Americans already playing video games and many more joining the bandwagon each day, the sky is the limit for the video game industry.