A Walkthrough of the Canadian Video Game Industry: an Economic Geography Perspective on the Digital Entertainment Frontier
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Western University Scholarship@Western Electronic Thesis and Dissertation Repository 8-11-2020 11:00 AM A Walkthrough of the Canadian Video Game Industry: An Economic Geography Perspective on the Digital Entertainment Frontier Grant L. Morin, The University of Western Ontario Supervisor: Green, Milford, The University of Western Ontario A thesis submitted in partial fulfillment of the equirr ements for the Doctor of Philosophy degree in Geography © Grant L. Morin 2020 Follow this and additional works at: https://ir.lib.uwo.ca/etd Part of the Geographic Information Sciences Commons, Growth and Development Commons, Human Geography Commons, Industrial Organization Commons, Other Economics Commons, Other Geography Commons, and the Technology and Innovation Commons Recommended Citation Morin, Grant L., "A Walkthrough of the Canadian Video Game Industry: An Economic Geography Perspective on the Digital Entertainment Frontier" (2020). Electronic Thesis and Dissertation Repository. 7335. https://ir.lib.uwo.ca/etd/7335 This Dissertation/Thesis is brought to you for free and open access by Scholarship@Western. It has been accepted for inclusion in Electronic Thesis and Dissertation Repository by an authorized administrator of Scholarship@Western. For more information, please contact [email protected]. Abstract The video game industry has been examined since the 1970’s, yet individual country analysis from an economic geography perspective has been lacking. It is the contribution of this dissertation to utilize the agglomeration economy and location theory literature in its application to the Canadian video game industry. To understand this industry kernel density maps, standard deviational ellipses, and mapping processes were used to illustrate the dispersion and clustering patterns of studios in Canada. In addition, a Poisson regression was performed using count data of the number of video game firms in census metropolitan areas. The resulting data displayed strong clustering in the major trade cities of Vancouver, Toronto, and Montreal, with the Poisson regression showing a positive relationship between the two variables, population and number of video game studios. The interview data revealed that this is influenced by a mix of urban hierarchy and financial aid. These two go hand in hand as often these areas with the highest population and therefore the greatest number of video game studios, have the most opportunities for this aid. Interviews also revealed the additional element of networking. While this is somewhat limited in some given locations, there are more instances of open communication in the smaller scale operations between developers. The growth of the video game industry relies heavily on the branch economy that has developed overtime. While it is possible to apply the initial growth of the industry in Canada to the economic geography literature, this is reduced to initial stages of development and labour pools. Key Terms: Economic Geography, Video Game industry, Canada, ARCGIS, Qualitative Methods, Agglomeration ii Summary for Lay Audience Canada is the third largest producer of video games in the world. From small independent studio successes such as Cuphead: Don’t Deal with the Devil and free to play masterpieces like Warframe, to AAA game titles such as Assassin’s Creed, Canada has become a powerhouse over the past few decades. The video game industry has been examined since the 1970’s, yet individual country analysis from an economic geography perspective has been lacking. It is the contribution of this dissertation to utilize the agglomeration economy and location theory literature in its application to the Canadian video game industry. To understand this industry, GIS mapping techniques were used to illustrate the dispersion and clustering patterns of studios in Canada. This was used in conjunction with interview data to further understand the trends of agglomeration as well as internal industry dynamics such as the creative process, competition, and financial aid. The Canadian video game industry clusters in the major trade cities of Vancouver, Toronto, and Montreal. While this is influenced by urban hierarchy, these populations centers are more due to social factors where developers are from the area and have connections to the location. The greater influences, on a provincial level are the funding and tax incentive programs that are offered. While there are federal and provincial opportunities, these do not greatly sway location unless there is city-specific financial aid. This support that Canada offers is one of its greatest strengths, yet the process to obtain such aid is a lengthy and complex one. Due to most production being project based, the video game industry is extremely mobile, and this has great implications for future growth in Canada Yet, in terms of utilizing the economic literature for such a purpose, it is reduced to initial stages of production and even that is reduced to understanding what attracts labour. The importance is in ensuring growth is within the confines of social aspects and community development, not entirely in the benefits of agglomeration economies. iii Acknowledgments I would like to take the time to thank all the individuals who have shaped this research into what it is. Dr. Milford Green, for agreeing to take a chance on an unusual topic, and for his careful guidance throughout the entire process. Dr. Jeff Hopkins for his wise words on writing a monograph and navigating the graduate student life. Dr. Jed Long for his diligence and patience with aiding in statistical work. Martin Lefebvre and Chris Hewitt for also having the patience to help with the mapping and GIS processing. Lori Johnson for keeping the project moving and keeping me on my toes. Then my defense committee: Dr. Diana Mok, Dr. Johanna Weststar, and Dr. Murray Rice, on their guidance on the final drafts of this dissertation. Thank you to the Entertainment Software Association of Canada for the data they provided, for without it the research would never have been completed in the first place. All the interviewees, as their words have had the greatest impact on this research, and it was an honour to have their participation. To all my friends, both in and outside the geography department, for all the times when breaks were required to ensure my wellbeing was addressed. Finally, to my family, who have been my greatest support through the entire process. My mother and father, who supported my pursuit of a doctoral degree even though the topic involved video games. My younger brother Brodie, who took the time to be my pseudo- research partner, and from whom all the inspiration for this research comes from. iv Table of Contents Abstract ............................................................................................................................... ii Summary for Lay Audience ............................................................................................... iii Acknowledgments.............................................................................................................. iv Table of Contents ................................................................................................................ v List of Tables .................................................................................................................... vii List of Appendices ........................................................................................................... viii 1 Introduction .................................................................................................................... 1 1.1 Contextualizing the Video Game Industry ............................................................. 3 2 Location Theories and Agglomeration Economies ........................................................ 7 2.1 Early Concepts and Locational Interdependence .................................................... 8 2.2 Of Industries and Agglomeration .......................................................................... 16 2.3 Spatial Interaction ................................................................................................. 32 2.4 Notes on Theories ................................................................................................. 35 3 Methods ........................................................................................................................ 38 3.1 GIS Processes........................................................................................................ 39 3.2 Semi-Structured Interviews .................................................................................. 43 4 Results .......................................................................................................................... 46 4.1 Quantitative: Maps and a few things to note about the maps ............................... 46 4.2 Nearest Neighbour Analysis ................................................................................. 49 4.3 Poisson Regression Analysis ................................................................................ 50 4.4 Interviewee Results ............................................................................................... 52 5 Discussion .................................................................................................................... 73 5.1 What does the Canadian video game industry look like? ..................................... 73 5.2 Branches, AAA, and the