According to a new report issued by the Entertainment Software Association (ESA), the video game industry is clearly doing it’s part to stimulate the American economy. In 2009, the U.S. gross domestic product (GDP) from the video and computer gaming industry amounted to a healthy $5 billion.

What’s more, between 2005 and 2009, the industry as a whole saw a 10 percent increase, a figure that’s 7 times the overall growth rate of the entire U.S. economy. However, this figure flies directly in the face of reports that the industry isn’t faring as well in 2010, with March being the only month thus far this year that’s seen month-over-month growth.
“Despite a challenging economic environment, the entertainment software industry continues to grow and create new jobs at a rapid pace,” said ESA president and CEO Michael Gallagher.
This news arrives as part of ESA’s recently published study: Video Games in the 21st Century: The 2010 Report. In addition to the GDP figures, the ESA study also carries on to break down individual numbers, as well as salaries.
32,000 Americans are directly employed by the video game industry, an annual gain of 9 percent since 2005. Another 88,000 people are indirectly employed by the video game industry, bringing the total to 120,000 individuals.
Of those directly employed by the video game industry, the average annual salary was $89,781 (I can haz raiz pls?), with an overall industry compensation of $2.9 billion in 2009.
And where’s the work to be found? Well, no surprise here, as The Golden State still remains on top when it comes to pixilated employment. The gaming industry reportedly pumped $2.6 billion in employee compensation (direct and indirect) in California. Add to that the 2.1 billion gaming companies paid directly to the State of California, and you’re looking at a healthy 11.4 percent annual rate of growth between 2005 and 2009.
Other top players in the U.S. gaming market by geography include:
- Texas – ranked #2 with 13,613 direct and indirect video game industry employees
- Washington – in the #3 slot employs 11,225 gaming industry personnel
Rounding out the top 6 are New York, Massachusetts, and Illinois. Also noteworthy, The State of Virgina’s video game presence expanded 77 percent from 2005 – 2009.
To view the full report, download the PDF directly from ESA.




Keep in mind, 2008 was a banner year for game developers, as they set an industry average record that year, not something to easily top. This drop in salaries is the first case on record of a significant average salary decrease. Game Developer Research points to a loss in consumer confidence, and attributes this to the current economic climate. And while this is a drop in average salaries, the number did not dip below 2007’s number, indicating that this may be a direct result of out of control Wall Street bankers making crazy bets on commodities failing.
