Video Gaming: It's Not Kid's Play!
Angry Birds and Farmville are part of the contemporary playing mind: the double-digit growth market for video games has now reached a global level of €60 billion, thus making video gaming a prime form of mass entertainment.
The encroachment of video games into our lives is due to the emergence of new platforms (iOS, Android, Facebook) and the growth of casual gaming. Thanks to app stores, barriers to entry have fallen in a market hitherto controlled by major software companies, and so have development costs (from tens of millions to thousands of euros). At the same time, supply has become greatly diversified, as has the price range (apps typically cost less than 2 euros). Self-publishing has brought forth a new generation of game developers, who have evolved from creative technicians to savvy entrepreneurs. The cases of Rovio and Zynga are perfect examples of the dazzling growth of this segment of digital entrepreneurship.
The future could be promising for Italy, too, as shown by the first Census of Italian Game Developers doneby Bocconi's ASK Research Center at request of the Italian Association of Video Game Publishers and Developers. 72 entrepreneurial initiatives were polled (48, excluding start-ups) employing around 400 people. The average age of these entrepreneurs was 32, with 30% of the sample having less than 30 years of age.
In spite of 50% growth in the number of firms over the last three years, Italy is still trailing behind in a dynamic and competitive environment dominated by countries like Finland, Sweden, Canada, and United States.
Employment numbers are low when compared to manufacturing sectors, but this is a knowledge-intensive high-innovation industry, so that the ability to generate spillovers in related industries is what really counts. The census for instance showed that 70% of Italian video gaming firms polled, besides developing video games, also work on digital projects for other firms and public institutions, by generating interesting fallouts for innovation in B2B services. Reduced barriers to entry and a dynamic market make video gaming the ideal entrepreneurial training ground for young generations.
Game developers suggest two ways to foster market expansion and the consolidation of existing firms: cutting red tape and other obstacles to entrepreneurship, digital infrastructure included, and allocating R&D funds to game development, as well as implementing initiatives to improve the job market. A fundamental role is played by smart communities devoted to game development, which combine and aggregate key resources for professional education, and represent ideal contexts for new partnerships and projects. Policymakers should recognize that these are examples of what a digital agenda on growth entrepreneurship is about. Today, video games are a lot more than kid's play.