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October 10, 2011

Behind The Sound Bite

U.S. Rep. James McGovern, D-Worcester, recently announced a five-year, $500,0000 grant for the Massachusetts Digital Games Institute at Becker College, which aims to bring together academic and private industry leaders in the video game design industry to grow the sector in the Bay State, specifically Central Massachusetts. During the event, McGovern said the entertainment software industry employs almost 5,000 in Massachusetts. In this week’s Behind The Sound Bite, we take a closer look at that figure.

How many jobs does the entertainment software industry support in Massachusetts?

About 5,000, as McGovern mentioned, according to the Entertainment Software Association, a nationwide industry trade group. In fact, the number cited by the ESA is 4,692 jobs at 37 locations in the state, according to the ESA’s figures from 2009.

What’s the economic impact of the industry in Massachusetts?

The ESA found that the average compensation for entertainment software jobs was $83,335, leading to an overall direct and indirect impact of $210 million in Massachusetts.

How does the Massachusetts video game design industry compare to those in other states?

Massachusetts has the fifth-largest entertainment software industry in the nation, with California the largest by far. The Golden State accounts for 41 percent of the more than 120,000 people employed in the industry nationwide. The other top states include Texas, Washington and New York.

Is this a growth industry?

According to the ESA, the industry grew at a more than 10 percent annual rate between 2005 and 2009, compared to a less than 2 percent annual growth rate for the entire U.S. economy. The industry contributed $4.9 billion to the nation’s Gross Domestic Product in 2009, the ESA found.

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