Power Of Play2009 Study Highlights

WIN is a program funded by
enterpriseSeattle

Interactive Media
Competitiveness Study
3rd Annual Interactive Media Economic Update Luncheon
September 3, 2009

Overview
Industry Trends: Update
Workforce Needs
Regional Competitiveness
September 3, 2009
PowerofPlay
Interactive Media Economic Update Luncheon
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Interactive Media Cluster
Distribution Network
Talent
Research & Training
Advertising
Publishers
Game Developers
UW
DigiPen
Market Research
Manufacturing
Gaming
Programmers
Professional Services
Trade Schools
Community Colleges
ICT Infrastructure
Casual
Financing
Venture Capital
Graphics/ Artists
Other Colleges and Universities
TelCos/ Carriers
Mobile/PDA
Core
Legal/I.P.
Management
Designers
Research & Industry
Consoles
Servers & Networks
Serious
Network Engineers
Medical Applications
Automobiles
Handhelds
Virtual Worlds/ Social Networks
Management
Military
Aerospace
PCs
Media
Software
Microsoft
Technical & Additional Talent
RealNetworks
Professional Associations
Government Programs
Audio
Voice-over & acting
Nintendo
Video
Musicians
September 3, 2009
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Interactive Media Cluster
Distribution Network
Talent
Research & Training
Advertising
Publishers
Game Developers
UW
DigiPen
Market Research
Manufacturing
Gaming
Programmers
Professional Services
Trade Schools
Community Colleges
ICT Infrastructure
Casual
Financing
Venture Capital
Graphics/ Artists
Other Colleges and Universities
TelCos/ Carriers
Mobile/PDA
Core
Legal/I.P.
Management
Designers
Consoles
Servers & Networks
Serious
Network Engineers
Handhelds
Virtual Worlds/ Social Networks
Management
PCs
Microsoft
Technical & Additional Talent
RealNetworks
Professional Associations
Government Programs
Audio
Voice-over & acting
Nintendo
Video
Musicians
September 3, 2009
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Industry Trends
Regional Interactive Media Sector on the Rise
2007 study found growth from 2000 - 2006

More than 150 companies
More than 15,000 jobs
Jobs at existing establishments doubled from 2000 to 2006
12% growth per year (cagr)
Jobs at smaller companies more than doubled from 2003 – 2006 (26% cagr)
$4.2 Billion in revenues produced by regional companies in 2006

Since 2006 jobs have grown rapidly

14% among established firms (excl. Microsoft)
Total jobs in the region increasedby 6% during the same two years

Jobs at Established IM Employers, Regionwide, 2006 - 2008
Puget Sound Region
+14%
5,070
4,430
Remainder of Region
+9%
Seattle
+33%
September 3, 2009
PowerofPlay
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Workforce Needs
Talent Wanted

Currently 170 job postings in region among 40 local firms
80% firms that post job information online are hiring

50%-80% Firms Hiring
Admin.
Project Managers
Artists, Graphic Designers
Programmers, Software Engineers
September 3, 2009
PowerofPlay
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Labor and Hiring Challenges
Growing a company comes with labor challenges:
Talent (overall)
Software experts
Artists
Workforce Needs
September 3, 2009
PowerofPlay
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Hiring Challenges: Talent
Workforce Needs
A broad array of skills and talents are required
Diversity and adaptability trumps specialization
New hires often lack product-oriented and business focus
Teamwork skills, task management, project execution, self-teaching
“Traditional talent for the gaming industry has wrong skills”
“Best talent are kids and we have to train them”
Rapid individual learning required while the product is live and functional
Must learn to work fast
“Like building 747 out of a flying kite”
Company cultures vary; most have intense and informal culture
“Give up your social life and learn to sleep under your desk”
“We end each day with a play session, ‘We kill each other for an hour and then we all go home and come back the next day.’ ”
Burn out is a concern
September 3, 2009
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Hiring Challenges: Software
Engineers and programmers in greatest need and shortest supply
IM companies compete for talent with many industries
Online programmers in demand everywhere
The best and most popular software packages change quickly
Programming workforce must be able to learn rapidly and productively on the job
Can schools teach someone how to learn on their own?
Can schools at least weed out people who can’t?
What is the educational role of universities vs. trade schools?
Do we need to start at early education to teach people how to teach themselves?
Regional and web-conferences cited as a key means of learning new software effectively and efficiently
Workforce Needs
September 3, 2009
PowerofPlay
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Hiring Challenges: Artistic
Technology specialists and artistic capabilities are not always found in the same person
IM companies compete for talent with other industries
Artists resist changing tool and techniques
Story boarding skills needed; several postings for writers
Other skills taught: learning human anatomy, drawing landscapes
Workforce Needs
September 3, 2009
PowerofPlay
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Competitiveness Indicators
Depth of companies
Depth of talent
Culture and quality of life
Cost of living
Talent attractors
Training opportunities
Business climate and public support
Regional and State ICT infrastructure investments
Cost of doing business
State Incentive programs
Competitiveness
September 3, 2009
PowerofPlay
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USA has most game development companies of any country in the world.
Vancouver, Tokyo, Seoul are other world hot spots
Seattle region has second most Interactive Media companies of any region in the US.
10% of all USA companies located in Seattle

Depth of Companies
Competitiveness
Source: Gamedevmap.com,
enterpriseSeattle
September 3, 2009
PowerofPlay
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Competitive Regions
Depth of Talent: Programmers & Engineers (all industries), 2008
Total Programmers and Engineers

45,000 programmers and engineers
5th most of any region in USA
Over 3x more concentrated in Seattle region than US

Concentration of Programmers and Engineers
(1.0 = US Aggregate)
Source: Bureau of Labor Statistics, 2008, MSA
September 3, 2009
PowerofPlay
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Competitive Regions
Depth of Talent: Multimedia Artists & Animators (all industries) 2008
Total Multimedia Artists and Animators

1,350 multimedia artists and animators
4th most of any region in USA
4X more concentrated in Seattle region than US

Concentration of Artists and Animators
(1.0 = US Aggregate)
Source: Bureau of Labor Statistics, MSA, 2008
September 3, 2009
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Training Opportunities
Competitive Regions
Washington State Institutions
38 states have colleges and higher education schools with curriculum for gaming
California 48
Florida 21
New York 19
Texas 19
Illinois 16
Pennsylvania 13
Washington 12
Georgia 8
AZ, CO, MD 7
September 3, 2009
PowerofPlay
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Cost of Living
Regional Considerations

Overall Prices (CPI)
Transportation
Housing
Property taxes
Taxes
Income tax
Sales tax
Utility tax
Gas tax
Schools
Quality public schools
Private school choices

Source: Council for Community & Economic Research, 2009
September 3, 2009
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Cost of Business
Average Cost of Labor by MSA, Computer Programmers, 2008
Regional Considerations
Labor costs
Related to Cost of Living
Office and server space
Power and electricity
Tax burden
Washington ranks favorably among studies on tax burden
Source: BLS
September 3, 2009
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Competitive Regions
Regional Competitiveness
1
2
3
4
KEY:
Top 3
4 – 6
7 – 9
10 - 12
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Incentives
Public Support: Incentives Programs
Maine
Certified media production income tax credit and media wage reimbursement
Washington
High Technology B&O tax credit program
Michigan
Film production incentive
Massachusetts Film tax credit
Connecticut
Digital Media and Motion Picture Tax Credit
Seattle
Minn.
Wisconsin
Film tax credit program
Boston
Chicago
New
York
Indiana
Media production expenditure tax credit
Rhode Island Motion picture production company tax credits
Salt
Lake
San
Francisco
Tennessee
Visual Content Act of 2006
SanJose
New Jersey
Edison Innovation Digital Media Tax Credit Program
Los
Angeles
Atlanta
Dallas
Georgia Entertainment Industry Investment Act
Arizona
Motion picture production tax incentives
New Mexico
Film production tax credit
Austin
Louisiana
LA Digital Media Act
Texas
Moving Image Industry Incentive Program
Florida Entertainment industry financial incentive program
September 3, 2009
PowerofPlay
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Incentives
Public Support: Incentives Programs
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Seattle’s Comparative Advantages
Strong cluster with growth momentum
Leader in casual games
Leader in distribution
Strong concentration of programmers and engineers
Training institutions
Quality of life appeals to talent demographics
Emerging focus on leveraging wireless talent and technology
September 3, 2009
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www.WashingtonInteractiveNetwork.org
Kristina Hudson, Director, Washington Interactive Network
Khudson@enterpriseSeattle.org
Twitter @ WINetwork
Hash Tags: #POP09 or #PAX09
http://ow.ly/NDXT
Video of this event is now posted!
http://www.ustream.tv/recorded/2098222
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