Jul
The Role of Video Games to a Better Economy
In this time of global economic recession, it is prevalent and without a doubt that video games are still being patronized by almost everyone regardless of sex, gender, and age.
People usually play these video games for a variety of reasons. Some professionals play videogames to get rid of the stress brought about from work. Students and kids play videogames in order to have fun and be able to brag to their colleagues of their levels and skills. While parents play video games in order to get a connection to their children and build a bond. But whatever the reason each of the players may be, one thing is common: playing videogames can bring about brain stimulation and players unknowingly help the country’s economy.
According to Michael Gallagher, CEO of the ESA, “Computer and video game companies play an ever increasing role in our nation’s growing economy.” He added further, “These companies and their colleagues across the nation are making entertainment software one of the fastest growing industries in the United States.”
Video Games as a Trigger
In a study conducted by Robert W. Crandall, he clarifies that “The direct contribution to the nation’s output does not reflect the total contribution of the entertainment software industry. The purchase of video game triggers the purchase of a host of complementary products, and thus the sale of software contributes indirectly to the nation’s output. “ In order to make clear of this, we will show an example. Suppose someone bought a new videogame. The requirement of the video game is a 2G RAM and 1G Video Card. But since you only have 1G of RAM and 512MB Video Card, you have to buy a new RAM and new video card in order to use the videogame you have just purchased. In this way, the videogames triggered the player to buy other items to play the game.
Video Games as a Means to Pass up Depression
Some analysts say that the video game industry could be a silver lining in this global recession’s gloomy cloud. “During a recession, what becomes most important is the psychological not the logical,” said Hong Kong University Business School professor of marketing Gerald Gorn. “This is an activity that leaves your mind free from being pulled back to the present day realities and hardship” (Guzder, 2008).
Video Games Impact on US Economy
Economists Incorporated outlined specific contributions of the entertainment software industry on the U.S. economy. The report concluded that:
The computer and video game industry’s value added to U.S. Gross Domestic Product (GDP) in 2006 was $3.8 billion;
In 2003-04 and 2005-06, the industry’s contribution to real growth exceeded its share of GDP by more than four to one;
The entertainment software industry directly and indirectly employs more than 80,000 people in 31 states; and,
U.S. industry employees received total compensation of $2.2 billion.
You might wonder so what if the US Economy is boosted by the Entertainment Industry or Video Games in particular. Folks, let us all remember that world economy is directly influenced by the United States. Each of our country’s economy, whether we like it or not, is affected by the US economy. Thus, we might as well consider that playing video games can help boost our economy.
With playing video games, we are not only helping ourselves get away from depression but we are helping also our own country get away from the global economic crisis. This is a fact.
