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The Virtual Hand: Exploring the Societal Effects of Video Game Industry Business Models

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The Virtual Hand: Exploring the Societal Effects of Video Game Industry Business Models THE VIRTUAL HAND: EXPLORING THE SOCIETAL IMPACT OF VIDEO GAME INDUSTRY BUSINESS MODELS Mark D. Cruea A Dissertation Submitted to the Graduate College of Bowling Green State University in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY December 2011 Committee: Oliver Boyd-Barrett, Advisor Savilla I. Banister Graduate Faculty Representative Radhika Gajjala Sung-Yeon Park ii ABSTRACT Oliver Boyd-Barrett, Advisor The purpose of this study was threefold. The first goal was to investigate the evolution of business models within the video game industry with a specific focus on the console segment within the United States and including Microsoft, Nintendo, and Sony as the three largest console manufacturers. The second goal was to examine the connections between these business models and practices of planned obsolescence. The third goal was to determine the connections between the business models in use and any associated externalities. Externalities of particular interest included effects related to violence, gender, race, military connections, and the environment. Political economy served as both theory and method. Results showed that past business models have heavily relied on a cycle of production and consumption that contributes to a culture of overconsumption and regularly produces and reproduces both positive and negative externalities that are not accounted for as a cost of doing business despite the effects borne by society. iii The circumstances of human society are too complicated to be submitted to the rigor of mathematical calculation. -Marquis de Custine iv This dissertation is, of course, dedicated to all video game enthusiasts. Our love of games has created a vibrant and growing field of study in academia. Because of you, I have a profession about which I am passionate. This work is also dedicated to my parents, who instilled in me a love of learning, and who I am sure had no idea that the purchase of a home Pong unit from Sears in the 1970s would lead to a profession some 30 years later. In addition, I want to dedicate this to my children. In the years since I returned to school, they have gone from elementary to middle and high school students. You grew up too quickly. I hope you know how extremely proud I am of both of you. Most importantly, I want to dedicate this work to my wife, who has been the glue that held our family together over the last few years. In many instances, she did so with a husband who was not always present. I am indebted to you in so many different ways. I will always and forever be yours. v ACKNOWLEDGEMENTS I want to personally thank my chair, Dr. Boyd-Barrett, for all of his time, feedback, and patience during this process. This project began in your political economy class – a class I almost didn’t take, but I am certainly glad that I did. In addition, I want to thank my committee, Drs. Gajjala, Park, and Banister, for the committed and timely feedback throughout the process of completing the preliminary examination, proposal, and dissertation. I would also like to acknowledge all of my professors at Bowling Green State University for challenging me in ways I have never been challenged. I especially want to thank Dr. John Warren for his patience and wonderful guidance as I transitioned from my masters program in the English department to Communication. You were the epitome of a truly great graduate coordinator, and your presence on this earth is sorely missed. I would be remiss if I did not mention my family for their continued love and support. My father has always stressed the importance of relationships in life, and unfortunately, I have had to neglect many of those in recent years. Don’t worry dad, I did not forget. To my children, Rachel and Connor, you now have a full-time father again! Never forget that I always have and always will love you. To my wife, Susan, thank you for all of those conversations as I struggled through seemingly incomprehensible material and for all of your proofreading and feedback. Love is often about sacrifices, and you have sacrificed the most. I will always remember. vi TABLE OF CONTENTS Page CHAPTER 1: RATIONALE – PRESS START TO BEGIN ................................................ 1 Video Games Defined ................................................................................................ 3 Rationale ...................................................................................................................... 5 Popular Culture Phenomenon ..................................................................... 6 Role of Academia ........................................................................................... 7 Unique Interactivity ....................................................................................... 9 Societal Impact ................................................................................................ 11 Why Political Economy? ........................................................................................... 17 Organization of the Study ......................................................................................... 19 CHAPTER 2: A REVIEW OF THE LITERATURE – THE BACKGROUND STORY .... 21 Business Models ......................................................................................................... 21 Planned Obsolescence ............................................................................................... 24 Fashion ............................................................................................................. 24 Automobiles .................................................................................................... 26 General Consumer Goods ............................................................................. 26 Consumer Electronics .................................................................................... 27 Conspicuous Consumption and Advertising ........................................................ 29 Essential Capitalism ....................................................................................... 30 vii Creating Demand ........................................................................................... 32 Externalities ................................................................................................................ 35 Violence ........................................................................................................... 37 Connections to the U.S. Military .................................................................. 44 Gender ............................................................................................................. 51 Race .................................................................................................................. 54 The Environment ........................................................................................... 57 Visual Attention, Spatial Abilities, Education, Prosocial Games, and Civic Engagement .................................................................... 64 The Political Economy of Communication Research ............................................ 65 A Brief Research History of the Political Economy of Communication ..................................................................................................... 65 Recent Research Developments in the Political Economy of Communication ........................................................................ 68 The Political Economy of Video Games ................................................................. 71 Labor ................................................................................................................ 71 Production and Consumption ...................................................................... 73 Historical Cycles and Moral Panic .............................................................. 74 Industry Overviews ....................................................................................... 77 CHAPTER 3: THEORY AND METHOD – OPEN AND CLOSED WORLDS .............. 79 viii Political Economy ...................................................................................................... 80 Definitions of Political Economy ................................................................. 80 The History and Development of Political Economy as a Discipline ................................................................................................. 82 Central Characteristics of Political Economy ............................................. 89 Conceptual Framework for a Political Economy of Communication ......................................................................................... 94 Strengths and Weaknesses ............................................................................ 110 Research Questions .................................................................................................... 115 Method ......................................................................................................................... 116 Subjects ............................................................................................................ 118 Data Collection ............................................................................................... 120 Data Analysis .................................................................................................. 122 CHAPTER 4: DATA ANALYSIS AND FINDINGS – PLAYING THE GAME ............
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