Let the Games Begin

In the 1940s, physicists Thomas Goldsmith Jr. and Estle Ray Mann created a simple electronic game inspired by World War II radar displays. By connecting a cathode ray tube to an oscilloscope and devising knobs that controlled the angle and trajectory of the light traces displayed on the oscilloscope, they were able to invent a rudimentary missile game.

In 1947, Goldsmith and Mann were awarded the first-ever patent for an electronic game, giving it the catchy name of “Cathode-Ray Tube Amusement Device.”

Today, entertainment software is one of the fastest-growing industries in the U.S. economy and is revolutionizing how we engage with family and friends. Minnesota companies are players in the game.

Economic Impact
In the 1970s, a handful of companies produced a limited number of video games designed to appeal mainly to young males. Today, thanks in large part to the development of games with wider appeal, video games are now an $18 billion industry in the U.S. The industry also adds lucrative jobs to local economies, with average salaries nearing $100,000. Computer and video game companies directly and indirectly employ more than 80,000 people in 31 states. It’s no wonder that states are aggressively pursuing gaming companies with tax incentives and generous deals (Former Red Sox ace Curt Schilling is considering moving his new gaming company from Beantown to Rhode Island in exchange for $75 million in loan guarantees.)

More and more players are buying video games digitally or pay-to-play through monthly subscriptions ($14.99 for the popular World of Warcraft, for example) and micro-transactions, e.g., gamers sign in through their Facebook accounts and buy game upgrades (weapons, level unlocks, etc.) directly through the game using PayPal, credit cards or marketing offers.

» Digital River
As traditional games evolve online, so does the way they are
sold and monetized. This trend will benefit Eden Prairie-based Digital River, a leading provider of global e-commerce solutions that builds and manages online businesses for software and game publishers, consumer electronics manufacturers, distributors, online retailers and affiliates. Its multi-channel e-commerce solution helps companies of all sizes maximize online revenues as well as reduce the costs and headaches of running an e-commerce operation.

Digital River has the advantage of size and longevity on their side. Companies count on reliability, which Digital River, with technology engineered to drive sales in more than 85 countries and 26 languages and a history dating back to 1994, brings to the table.

» Navarre
Navarre is a leading distributor and publisher of home entertainment products including DVDs, PC software, video games, and accessories. Based in New Hope, the company has distribution relationships with top gaming retailers such as Wal-Mart, Target and Best Buy, and has recently expanded into Canada. The company has a long reach, distributing products to more than 19,000 retail and distribution center locations throughout the United States and Canada.

What’s Next?
The Twin Cities are fertile ground for gamer media (3 million subscribers receive Minneapolis-based Game Informer), game developers and game publishers (besides Navarre, Activision has a major operation in Eden Prairie).

The next wave of game entrepreneurs can be found across the state’s college campuses—not skipping class to play Halo but attending class to learn topics such as “Creating 3D Virtual Experiences,” and “Visualizing Physics.” Game design is where STEM education (Science, Technology, Engineering & Math) meets the liberal arts. Despite the recent addition of advanced technological interfaces, games still rely on a narrative: a way through the game in which players, as characters, participate in a series of choices, strategies and outcomes—and, of course, cool knock-down-dragout action scenes.

Two-thirds of Americans play video games. This vast audience is fueling growth and creating high-paying jobs. So let the games begin, and the fun (and sales) roll in.