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A Year of Innovation and Achievement 2015 ANNUAL REPORT A YEAR OF INNOVATION AND ACHIEVEMENT Front cover and this page: More than 52,000 industry professionals, analysts, journalists and gamers attended E3 2015 at the Los Angeles Convention Center. CONTENTS 3 A Message from ESA President and CEO Michael D. Gallagher 4 The Voters to Court in 2016: Video Game Players 6 Preparing Digital Natives To Be Digital Citizens 8 E3 2015 Raises The Bar 10 ESA Research Program Explores Industry Reach, Gamer Community 12 ESA Foundation, Extra Life Raise Millions for Children 14 Federal Government Affairs 17 State Government Affairs 21 Communications & Industry Affairs 23 Legal, Policy & Regulatory Affairs 26 ESA Foundation 28 Entertainment Software Rating Board 34 Entertainment Software Association of Canada 36 ESA Members 2 A MESSAGE FROM MICHAEL D. GALLAGHER Friends: The tremendous growth of games and game It is my pleasure to present to you the Entertainment technologies has also driven ESA to new heights. Software Association’s (ESA) 2015 Annual Report. Over the We welcomed leading companies—including Bethesda last year, the video game industry has prospered as games Softworks, Vantiv, Greybox, Magic Leap and Snail Games— continue to not only alter the entertainment landscape, but as new members in 2015, and celebrated our most change business, sports, arts and education. While 20 years engaging E3 in the show’s history. We also marked 15 years ago games were a niche entertainment medium, today they of giving back to local communities through the ESA are a strong engine for innovation across sectors. Foundation. This important work was punctuated by our Our industry plays a significant role throughout society. continued support for Extra Life, an annual 24-hour video Today, more than 60 percent of Americans play video game marathon which raised more than $8 million dollars games, our industry generates over $23 billion in annual for Children’s Miracle Network Hospitals during its U.S. sales, and video game companies and degree programs 2015 event. now stretch across 46 states and 84 congressional districts. We continue to expand and protect the industry’s The video game industry continues to push the envelope frontiers. Where we once had a limited policy focus and and deliver groundbreaking innovations that shape our often played defense, today we are active on dozens of industry and many others. In 2015, excitement around issues and have established proactive partnerships that are virtual reality (VR) and its promise to provide an exhilarating having a meaningful impact. As a result of our efforts, the new way to experience games and entertainment dominated way people think and talk about video games is changing, the news. VR is also paving the way for advancements in and they increasingly understand that our industry is a other sectors: it is used as a diagnostic and surgical tool by vibrant part of American culture and the economy. healthcare professionals; it is engaging students in critical Since ESA’s beginning in 1994, we have seen STEM subjects; it is even helping to prepare astronauts for unparalleled growth in the video game industry. We’ve seen life in space and training them for their next mission. how games can play a pivotal role in our everyday lives and This technology revolution is also ushering in a new how they can help us take on some our nation’s toughest generation of gamers—gamers who are highly engaged, shared challenges. I look forward building upon our many informed and have strong opinions on critical issues. In fact, successes and seeing what new and exciting endeavors our a survey we conducted in the fall found that 80 percent of industry will take on next. gamers intend to cast their vote in the 2016 presidential election, compared to just 75 percent of the general Sincerely, population. These voters hold strong opinions on critical issues and more than 1 million of them are working through the Video Game Voters Network (VGVN) to ensure their voices are heard in government offices across the country. Michael D. Gallagher With such a powerful voice, the Gamer Vote will undoubtedly President and CEO influence the political landscape in 2016 and beyond. Entertainment Software Association ESA 2015 ANNUAL REPORT 3 In 2015, VGVN launched Start Democracy and announced its 1 millionth member. 4 THE VOTERS TO COURT IN 2016: VIDEO GAME PLAYERS With presidential candidates in full motion, House and Senate hopefuls busy courting voters and local candidates travelling door-to-door, politicians across the country are discovering a highly engaged segment of the electorate: video game players. In November 2015, ESA released a poll revealing that video game VGVN to ensure that video games continue to enjoy the rights players, like soccer moms before them, are an important group, one afforded them by the Constitution—the same rights as books, that will help shape our country’s future. The first-of-its-kind survey, movies, music and television. Essential Facts About Gamers and Politics, sought to uncover game To commemorate this milestone, VGVN launched Start players’ voting habits and political leanings, and found that gamers Democracy—a voter registration campaign aimed at increasing gamer will play a major role in the 2016 presidential election. turnout on Election Day. Beyond getting gamers to the polls in 2016, According to the survey, more than 80 percent of gamers— Start Democracy will highlight the need for candidates to address the roughly 100 million people—said they anticipate voting in 2016. concerns of the Gamer Vote. VGVN is partnering with Rock the Vote, Gamers also shared their thoughts about hot-button issues such as the largest U.S. nonprofit and nonpartisan organization focused on foreign policy—49 percent believe the U.S. should engage with other driving youth to the polls. To promote this new initiative, a collective countries; global warming—76 percent believe that human activity is goal was set to register more than 1 million millennials by Election causing or contributing to global warming; and the budget Day. VGVN will also encourage candidates to speak directly to deficit—61 percent lean toward cutting programs and spending. gamers, promote voter registration at key political and video game The survey found that gamers identify equally as Republicans industry events and utilize the unique reach and culture of video and Democrats. games to drive gamers to the polls. Video game players have long been a politically active group. For This groundswell of support underscores how video games and nearly a decade, gamers have organized under the Video Game Voters those who play them are firmly cemented in the mainstream, taking Network (VGVN), a grassroots coalition of voting-age game players center stage when it comes to shaping culture, politics and the that mobilizes around public policy matters affecting the computer broader U.S. society. and video game industry and ensures that players’ voices are heard. As ESA President and CEO Mike Gallagher said, All told, VGVN members have sent countless letters, emails and “Gamers are engaged, informed and hold strong opinions on messages to their members of Congress to speak up for their rights. critical issues. From both sides of the aisle, and in every state This coalition has swelled in recent years. In the fall, ESA across the country, they will influence the course of our announced that more than 1 million players have signed up with nation’s future.” ESA 2015 ANNUAL REPORT 5 PREPARING DIGITAL NATIVES TO BE DIGITAL CITIZENS ESA Digital Living Project students from the Bertha Sadler Means Young Women’s Leadership Academy in Austin. 6 Kids today are attuned to the latest digital technologies, adopting new devices, software and online platforms at a rapid pace. Though often described as digital natives, research has found gaps in their understanding of the appropriate ways to use technology and lagging interest in creating technologies of their own. While many kids use these technologies to communicate positively with friends and family, others have been bullied or share inappropriate content online. At the same time, the National Science Board projects that of the 3.8 million ninth graders in the U.S., only 6 percent will end up pursuing a science, technology, engineering or math (STEM) degree in college. Recognizing the dual need to promote responsible online behavior Ruben Diaz Sr. (D), and Take-Two Interactive Software Vice President among students while fostering their interest in STEM subjects and of Corporate Communications and Public Affairs Alan Lewis joined careers, ESA partnered with EverFi—a leading education technology ESA at the Hostos-Lincoln Academy of Science School in the Bronx company—to create the ESA Digital Living Project. Leveraging an to recognize more than 60 middle school students who had EverFi-developed curriculum, the program combines the power of completed the Digital Living Project. rich media, engaging video games and real-world simulations to In November, ESA hosted an event at the Bertha Sadler Means educate teens about online safety. Students also build digital skills, Young Women’s Leadership Academy in Austin, Texas. Academy such as how to create a blog, maintain a responsible social Principal Ivette Savina, Certain Affinity Business Relationship networking profile and evaluate the legitimacy of online sources and Manager Geoff Yetter and Austin ISD Executive Director of Career receive an introduction to career opportunities within STEM fields. and Technical Education Annette Gregory spoke with Digital Living With courses for both middle and high school students, students Project students, who later had an opportunity to meet with local demonstrate their mastery of technology and STEM skills as professionals who work in STEM fields. presented through real-life scenarios and engaging virtual missions. “It is critical that we provide our schools with effective and In fall 2015, ESA joined with school administrators, local officials meaningful resources in the classroom,” said Gregory.
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