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Content is Key

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Mike Gallagher
Entertainment Software Association

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Content is Key

  1. 1. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Wednesday, June 17, 2009
  2. 2. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Content is Key Michael D. Gallagher Entertainment Software Association
  3. 3. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus <ul><li>The industry has maintained traditional gamers’ support while reaching out to new demographics </li></ul><ul><li>The average gamer is 35 years old </li></ul><ul><li>Women represent 40% of gamers </li></ul><ul><li>One out of every four </li></ul><ul><li>gamers is over 50 </li></ul>An Expanded Consumer Base
  4. 4. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus <ul><li>In less than a decade, video games have embraced the new opportunities that broadband affords </li></ul><ul><li>Sony shipped PlayStation 2 in 2000 without a built-in network adaptor </li></ul><ul><li>When Microsoft launched Xbox Live </li></ul><ul><li>in 2002, the service supported only </li></ul><ul><li>five exclusive games </li></ul>An Increasingly Interconnected Relationship
  5. 5. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus <ul><li>North American gamers spent $1.9 billion downloading games last year </li></ul><ul><li>500 million online EA Sports games have been played since its launch in June, 2008 – equates to 2.2 million EA sports games are played each day </li></ul><ul><li>Xbox Live has more than 17 million members, who watched 25 million hours of Netflix movies and TV programs during the partnership’s first three months </li></ul><ul><ul><li>Sony’s PlayStation Network maintains more than 20 million registered user accounts </li></ul></ul>An Increasingly Interconnected Relationship
  6. 6. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Video Games Enter a New Era <ul><li>68% of American households play video games; 42% of American homes have a video game console </li></ul><ul><li>Overall computer and video game sales climbed to $22 billion in 2008 </li></ul><ul><li>Over 400 academic institutions around the world offer video game programs or courses </li></ul>Opinion leaders increasingly appreciate the industry’s contributions across society
  7. 7. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus <ul><li>Despite roots in entertainment, video games today serve serious purposes for many organizations </li></ul><ul><li>The Wellcome Trust launched Sneeze , later renamed Stop Swine Flu , to teach young people healthy habits </li></ul><ul><li>Broadband enabled Stanford University to launch the </li></ul><ul><li>Folding@Home project to better </li></ul><ul><li>understand protein folding </li></ul><ul><li>Dance Dance Revolution is in over 1,500 schools in 31 states, supplementing physical education classes </li></ul>Games Tackle Serious Issues
  8. 8. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus <ul><li>An ESA survey found that 70% of businesses now train employees through video games </li></ul><ul><li>78% of organizations not using the technology today likely will offer it within the next five years </li></ul><ul><li>More than 75% of companies plan to expand their usage within the next three to five years </li></ul>Video Games Mean Business
  9. 9. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus <ul><li>Broadband Networks:  Flooded with illegal copies of games, movies, music, and software that are downloaded by the thousands EVERY DAY </li></ul><ul><li>In May 2009 alone, ESA identified over 6.3 million infringements for a select number of ESA member games </li></ul><ul><li>This illegal content taxes broadband systems’ bandwidth capacities and undermines legitimate businesses </li></ul><ul><li>ISPs’ interests are best served by reducing the illegal uses of their networks in order to support legitimate business models that will be there for the long-term </li></ul>Online Piracy

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