Last week we ran a story from the Entertainment Software Association (ESA) in which it discussed the growth of game-related degrees offered in U.S. schools and universities. One of eight states tagged as not offering such degrees, however, took a little onus with its exclusion.

In a list of schools offering videogame-related degrees on the ESA website, eight states are missing—Alabama, Alaska, Arkansas, Hawaii, Maine, Mississippi, West Virginia and Wyoming. Arkansas officials took time out to argue their case in a piece running on the City Wire, stating that the ESA’s report “does not accurately reflect ongoing efforts to provide video gaming degree options to incoming students.”
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According to the Entertainment Software Association (ESA), 300 U.S. colleges, universities and art schools will offer videogame-related degrees in 2010-2011, representing almost 20 percent growth from the 2009-2010 timeframe.

The growth in this sector has continued unabated, with a reported 220 schools offering video game design, development, programming or art curriculums in 2008-2009 and around 250 in 2009-2010. California is still the leader in terms of schools offering game-related degrees with 50 institutions, followed by New York (26), Texas (21) Illinois (17) and Florida (15).

ESA Senior Vice President for Communications and Industry Affairs Rich Taylor commented, “While computer and video games have been a source of entertainment for decades, our society is increasingly recognizing the broader uses of games and their positive impact. Whether it is in healthcare, education, business or government, schools across the country see the value of games and are training their students to meet the demand.”
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The Entertainment Software Association (ESA) has released its annual report for 2009, detailing its activities issues affecting the computer and video game industry, including piracy, its efforts against attempts at content regulation, and intellectual property rights.

The 43-page report (available as a PDF - hope you have an hour or so to read it set aside) details all of the ESA's efforts throughout the year including various legal actions, lobbying efforts, its work on behalf of the ESRB with state and local governments, its continued fight against software piracy in the U.S. and abroad, and its efforts to get the video game industry tax incentives in various states.

Grab a beverage and your reading glasses. The report also includes a 6 page introduction from ESA president Michael D. Gallagher with an overview of the ESA's activity through the year. I recomend Mr. Gallagher's cliff notes.

The Entertainment Software Association’s (ESA) Video Game Voters Network (VGVN) has launched a badge contest that will award a $750 Best Buy gift certificate to the winner and $250 to the runner up.

The graphics are meant to create a new look for the VGVN’s advocacy of free-speech and should incorporate Video Game Voters Network, VGVN and/or the website address (vgvn.org) of the organization. Designs will be accepted until August 23. Beginning August 24 the public will be able to vote on their favorite designs from 10 hand-picked by a panel of judges.

ESA SVP of Communications and Industry Affairs Rich Taylor stated, “The badge design competition is a great way for gamers to get involved and use their creativity to stand-up for video games and free speech.”

A report issued by the Entertainment Software Association (ESA) indicates that the U.S. videogame industry employs almost 32,000 people and adds $4.9 billion in value to the country’s Gross Domestic Product.

Video Games in the 21st Century (PDF) also claims that the industry achieved an annual growth of 10.6 percent per year from 2005 through 2009, eclipsing the 1.4 percent annual growth rate posted by the U.S. economy as a whole. Outside of a staid 2009, when sales of entertainment software totaled $10.5 billion, sales rose each year from $7.0 billion in 2005, to $7.4 billion in 2006, to $9.5 billion in 2007 and $11.7 billion in 2008.
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The Entertainment Software Association spent $1.1 million during the second quarter of 2010 lobbying politicians on a number of issues including regulation of video game content, First Amendment protection, parental control technology and other issues, according to an Associated Press story, citing a recent disclosure report.

The ESA's lobbying efforts are down from $1.2 million, or 5 percent in Q1.

From April to June the ESA also lobbied lawmakers on copyright enforcement, green cards for skilled foreign workers and the H1-B visa program, which allows foreign workers in specialized and advanced-degree positions to work in the country temporarily. In its lobbying efforts the ESA sought the help of Congress, the Federal Trade Commission, Federal Communications Commission, the Department of Homeland Security, the FBI and other agencies, according to a report filed on July 20 with the House clerk's office.

Source: AP

Danielle Parr, the executive director of the Entertainment Software Association of Canada says that his country's game industry and government can do anything they want to entice game developers to the great white north because "all's fair in love and war." While UK developers and government officials have been vocal about Canada's mission to "steal" developers from the region and bring them home, Parr, like a Jerry Springer guest, has no problem enticing talent to another bedroom.

While at Develop last week, Parr told BBC's Politics Show with a smile and a laugh that she sees no problem with it: Read More

While the Entertainment Software Association (ESA) has until September 10 to file its own brief with the U.S. Supreme Court in regards to Schwarzenegger v. EMA, the organization issued a statement in reaction to a brief filed by the state of California on Monday.

Trumpeting the ESA's dominating string of victories in such cases, and perhaps attempting to take some of the wind out of the sails of California State Senator Leland Yee, ESA President and CEO Michael Gallagher stated: Read More

EA.com Editor-in-Chief Jeff Green took to his corporate blog to write about why gamers should care about Schwarzenegger v. EMA.

Agreeing with EA CEO John Riccitiello, who said that a Supreme Court decision upholding the California law would “screw us up in a real way,” Green argued:

… it could have a chilling effect on the gaming industry as a whole--both the makers and sellers of the games, who will have to seriously think twice about the kind of product they can and want to sell, out of fear of ending up in jail. And therein lies the bigger question at hand. Because if you substitute books or movies or music in the previous couple sentences, you can see just how wrong this is. Read More

The 2010 Joint Strategic Plan on Intellectual Property Enforcement (PDF) issued by US. IP Enforcement Coordinator Victoria Espinel yesterday has drawn a wide range of reactions from the public and business sectors.

Entertainment Software Association (ESA) President Michael Gallagher said that the trade group was “grateful for Ms. Espinel's hard work to date, and appreciate the extent to which she has consulted with a wide range of stakeholders, including our industry.”

Gallagher added: Read More

Entertainment Software Association (ESA) President Michael Gallagher is “humble” about how trade group might fare in front of the U.S. Supreme Court, as the nation’s highest court prepares to rule on Entertainment Merchants Association (EMA) v. Schwarzenegger, which centers on a California law that attempts to make it illegal to rent or sell violent videogames to underage consumers.

In a pre-E3 briefing recounted by Joystiq, Gallagher said about the case, “We believe we're on the side of right here. We've believed that for 10 years. That hasn't wavered one iota. You go into this preparing to win, but also very prepared to handle the other conclusions as well”
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A full 67 percent of U.S. households now own a computer or videogame console used for gaming (down a percentage point from 2008 data) and the average age of the American gamer is now 34 years of age (versus 35 years old in 2008), according to new survey data released by the Entertainment Software Association (ESA).

The 2010 “Essential Facts” survey also indicated that 26 percent of all U.S. gamers were over the age of 50, bettering the figure of 25 percent attached to gamers under the age of 18. 49 percent of all U.S. gamers were between the ages of 18-49. Read More

The videogame industry lobby, the Entertainment Software Association, spent nearly $1.2 million USD during the first quarter of this year to lobby on a variety of issues including the regulation of video game content, First Amendment protection, copyright enforcement and other issues, according to an Associated Press story citing a recent disclosure report. The lobbying effort is up 23 percent from the fourth quarter of 2009, where the ESA spent $980,000.

From January - March of this year the ESA also lobbied on broadband deployment, green cards for skilled foreign workers and the H1-B visa program. The increased efforts probably have a lot to do with the Supreme Court's review later this year of California's Videogame law.. Read More

While the Entertainment Software Association (ESA) won a partial victory (preliminary injunction) earlier this year against the Chicago Transit Authority (CTA) over an ordinance that attempted to prohibit Mature (M)-rated game advertisements, the trade group now has an even clearer win under its belt, as a Judge has permanently banned the CTA from “enforcing or directing” enforcement of the ordinance.

In a ruling (PDF) handed down on May 17 in the U.S. District Court for the Northern District of Illinois, Eastern Division, Judge Rebecca Pallmeyer—who granted the preliminary injunction as well—ordered judgment against the CTA and dictated that prompt notice of the judgment be given to CTA officers, and any agents, servants, employees and attorneys. The CTA also agreed not to “appeal or otherwise attack the validity or enforceability of the Consent Judgment and Permanent Injunction.”
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United States Intellectual Property Enforcement Czar Coordinator Victoria Espinel authored a blog on the White House website to outline some of the public feedback she has received in regards to assembling an IP enforcement strategy.

Espinel, the first to serve in the newly created position, indicated that she discussed the matter with parties from all walks of life:

I sat down with book publishers, movie studios, music companies, and videogame companies, all of whom are faced with widespread problems resulting from internet piracy.  I heard concerns from many other sectors as well: our airplane industry, small manufacturers, automobile industry, steelworkers, textile manufacturers, and biotech, software, and telecommunication companies. Read More

In an opinion piece penned for U.S. News & World Report called "Video Games Don’t Cause Children to be Violent," Entertainment Software Association president and CEO Michael D. Gallagher makes the case for why the U.S. Supreme Court needs to uphold the U.S. Ninth Circuit Court of Appeals ruling on Schwarzenegger vs. Video Software Dealers Association (08-1448).

Meanwhile, across the virtual hall, Timothy F. Winter, president of the Parents Television Council gives an opposing opinion piece entitled "The Government Should Stop Kids From Buying Violent Video Games."

In his argument Winter attempts to explain why video games are so influential above and beyond other entertainment mediums. Unfortunately his message is overshadowed by using one game as an example: Postal: Read More

The Florida House has passed SB 1752, the companion bill to HB 697 (which previously passed early last month), okaying legislation that would provide $242.0 million in tax incentives to film, television and digital media productions within the state over the next five years.

The measure passed the House 115-0 and is now just a pen stroke away from becoming law, which appears to be a mere formality, as Florida Governor Charlie Crist praised the bill, stating, “I applaud the Florida Legislature for supporting a bill that provides high-wage jobs for Floridians and aids in the diversification of Florida’s economy.”

Digital media producers within the state would be eligible for tax breaks of 20.0 percent. It’s expected that the legislation could induce up to $1.2 billion in direct spending within the Sunshine State.
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NPR’s Diane Rehm turned her focus to violent videogames yesterday in a radio show that featured California State Senator Leland Yee, Grand Theft Childhood co-author Dr. Cheryl Olson, the Entertainment Software Association’s (ESA) Richard Taylor, Eugene Volokh, Professor of 1st Amendment Law at the UCLA Law School and researcher Craig Anderson from Iowa State University.

The nearly hour-long show began by discussing the Supreme Court’s decision to review California’s violent videogame law with Yee, before moving on to Anderson, who mentioned his recent research. Rehm then indicated that she watched “a bit” of Grand Theft Auto in order to become familiar with the subject, before asking Taylor to explain how popular “these games” are, who is playing them and what the effects are.
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The Entertainment Software Association (ESA) trade association has announced the addition of four publishers to its ranks.

Los Angeles-based Nexon America, Inc., O-Games, Inc. of San Carlos, California, Boulder, Colorado’s Realtime Worlds and Glendale, California-based Ignition Entertainment are the latest ESA members.

Michael D. Gallagher, president and CEO of the ESA, stated, “We look forward to representing them as we continue our work on the key public policy issues facing the entertainment software industry, including piracy, intellectual property rights and freedom of speech.”

The Entertainment Software Association Foundation is now accepting applications for its next round of grants.

Applications for grants to back programs and services that “utilize computer and video game technology” to make a difference in the lives of the youth of America are due on April 15, while applications for scholarship grants for the 2010-2011 school year are being accepted until May 15.

First-time program and service grant recipients can be awarded as much as $50,000, while up to 30 scholarships will be awarded to students studying graphic design, computer science, animation, programming, digital entertainment or software engineering. Up to 15 high school seniors and a maximum of 15 existing college students can receive $3,000 apiece in order to help pay for their education.
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The Brookline, Massachusetts-based New England Institute of Art is the latest school to offer a videogame design curriculum.

A Bachelor’s degree program in Game Art & Design is a new entry in the school’s Media Arts & Animation program and will teach students design, illustration, compositing, 3-D computer modeling and animation. Enrollees will start out learning the basics of drawing, color theory and 2D design before advancing to modeling and animation.

Advanced coursework will also include scriptwriting, storyboarding, character animation, and production.

Jason Donati, Chair of the Media Arts & Animation program, stated:

Everyone has seen the explosion of animation in the movie theaters, but the skill sets apply to the gaming industry as well.  We are very excited to be able to offer this opportunity for our students to be part of this growing industry. Read More

The Video Game Voters Network (VGVN), an organization backed by the Entertainment Software Association (ESA), announced that it has eclipsed the 200,000 member mark.

Launched in 2006, the VGVN bills itself as “a place for American gamers to organize and defend against threats to video games by registering to vote and letting Congress know how important this issue is to the community.” The organization said that it leveraged its user-base 46 times last year in order to get thousands of letters sent to politicians regarding political legislation.

Michael Gallagher, President of the ESA, had this to say about VGVN’s grass-root members, “They support their choice of entertainment by contacting elected officials and making their voices heard. Our industry is fortunate to have these dedicated individuals helping to preserve the rights of computer and video game consumers and makers.”
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The Entertainment Software Association (ESA) spent $4.604 million on its lobbying efforts in 2009, a significant jump over 2008’s total of $3.654 million.

The group spent $1.208 million in the second, third and fourth quarters of 2009 and $980,000 in last year’s first quarter. 2008 saw $980,000 spent in quarters two, three and four, and $714,364.50 in its  first quarter.

Taking a look at a report (PDF) on the ESA’s fourth quarter expenditures for 2009 shows lobbying funds spent on issues such as the Constitution (First Amendment Protection, Ratings, Video Game Sale Regulation), Copyright/Patent/Trademark (Anti-Piracy, IP Enforcement), Trade (Free Trade Agreements, Special 301 Designated Countries, Trade Policy Reform), Computer Industry (Internet Governance, Virtual Worlds), Immigration (High-Skilled Workers, H1-B Visas and Green Cards) and Telecommunications (ISP Management, Copyright Enforcement, Broadband Deployment).
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While Rhode Island Bill S.2156 drew backing from the Parents Television Council, an unlikely pair has come out against the Bill, which proposes fines and possible jail time for retailers that sell “M” or “AO” rated games to underage patrons.

You might expect that the Entertainment Software Association (ESA) is against the Ocean State legislation. The organization offered us this statement from Rich Taylor, ESA Senior Vice President of Communications & Industry Affairs: Read More

The International Intellectual Property Alliance (IIPA) has issued its annual Special 301 Report to the United States Trade Representative (USTR) outlining its take on the state of international piracy.

IIPA members include the Entertainment Software Association (ESA), Motion Picture Association of America (MPAA), Business Software Alliance (BSA) and Recording Industry Association of America (RIAA).

The report identified 35 countries as hotspots for piracy, including Canada. It was recommended that Canada remain on the Priority Watch List as it “stands virtually alone among developed economies in the OECD (and far behind many developing countries) in failing to bring its laws into compliance with the global minimum world standards embodied in those Treaties.” It was also suggested that Mexico be added to the Priority List, as, "A mixture of legislative deficiencies and a lack of consistent, deterrent enforcement have made Canada and Mexico piracy havens."

Spain, which is already on the list, should be placed under “close scrutiny” according to the IIPA as “Enforcement in the online environment is made more difficult as a consequence of Spain’s Attorney General issuing a circular that decriminalizes infringements that occur via peer-to-peer (P2P) networks. “

Brazil was also a target of the report, with a recommendation that the country be kept on the Watch List due to increasing piracy and the “lack of an effective legal or practical framework for addressing it.”

Also mentioned in the report was a study done by the ESA into illegal downloading practices. In December of 2009 the group tracked 200 member-published titles across P2P. It was estimated that 9.78 million downloads of the games in question were completed over the timeframe.

The full list of countries on the Priority Watch List are: Argentina, Canada, Chile, Costa Rica, India, Indonesia, Mexico, China, Philippines and Russian Federation. Remaining lists, as well as individual reports for countries, can be viewed here.

Countries on the USTR Watch List risk being on the receiving end of sanctions imposed by the USTR.

In order to address copyright piracy, Attorney General Eric Holder (pictured) has launched a Department of Justice Task Force on Intellectual Property.

Reuters reports that the new initiative came about following a meeting last December of Vice President Joe Biden, Holder and a veritable “who’s who” of members from the entertainment media, including representatives from the Recording Industry Association of America (RIAA), Motion Picture Association of America (MPAA), Sony Pictures, Warner Bros., Time Warner, NBC Universal, Universal Music and Walt Disney Co.

A full list of those who attended the summit can be found here.

The task force will work with state, local and international law enforcement to battle IP theft. Holder, in a statement added, “The rise in intellectual property crime in the United States and abroad threatens not only our public safety but also our economic well-being.”

Biden added, "Theft of intellectual property does significant harm to our economy and endangers the health and safety of our citizens."

The Entertainment Software Association (ESA) came out in favor of the task force, with President and CEO Michael Gallagher, who attended the meeting, stating, “Intellectual property is the lifeblood and backbone of entertainment software. Consumers benefit with the lower cost, high-quality and more diverse title offerings that are made possible by strong measures protecting the creative works of our industry’s artists.”

TechDirt labeled the original meeting (which led to the task force being formed) a “one-sided, piracy summit,” and questioned the relationship between Biden and Hollywood.

Public Knowledge also took umbrage with the original meeting, saying, “It is unclear why three cabinet officers, several subcabinet officers, the directors of the Federal Bureau of Investigation and the U.S. Secret Service are needed to tend to the worries of the big media companies, particularly the motion picture industry which is completing a year in which it will set box-office records.”

The Entertainment Software Association (ESA) has announced the addition of its first two new members of 2010.

Deep Silver, a publishing division of Koch Media, was launched in 2002 and has published over 60 titles. Fellow new member Slang, who specializes in publishing Hispanic-themed titles, will launch its first game (Lucha Libre AAA: Heroes del Ring) this summer.

ESA President Michael Gallagher on the additions:

Deep Silver’s and Slang’s membership in the ESA reflects the diversity of our industry. ESA’s growing roster also highlights the continued importance of our goals of protecting intellectual property rights, preventing piracy, and upholding freedom of speech.

With the two new members, the ESA now counts twenty-nine members in all.

A grant from the Entertainment Software Association Foundation has enabled North Carolina’s Cumberland County to enable a free tip line for students to anonymously report on pending crimes in their schools.

The Speak Up Cumberland County lets students, or parents, text or call 1-866-SPEAKUP in order to bring suspicious activities or those plotting crimes to light. While the ESA Foundation’s grant was locked in a while ago, the recent occurrence of a seven-year old bringing a gun to school in the region accented the need for such a plan.

State Representative Rick Glazier talked to the FayObserver about the importance of the program:

The biggest threat to schools isn't from someone coming from outside in. It's from someone boiling over inside.

The ESA Foundation’s contribution to the program was pegged at $200,000 over two years by the article. The funds will be used by the Speak Up’s creator, PAX, to promote the program in local media and to print materials and education kits. The ESA Foundation also supported the Speak Up program in 2006 and 2007.

The Entertainment Software Association (ESA) has won a preliminary injunction in its lawsuit against the Chicago Transit Authority (CTA) over the banning of advertisements for adult-rated videogames.

An ordinance (008-147) that took effect in January of 2009 prohibited any advertisement that “markets or identifies a video or computer game rated ‘Mature 17+’ (M) or ‘Adults Only 18+’ (AO).”  The ESA argued that such a ban unconstitutionally “restricts speech in a public forum that is otherwise open to all speakers without a compelling interest for doing so.”

The United States District Court for the Northern District of Illinois granted the ESA an injunction, with Judge Rebecca R. Pallmeyer stating:

…the advertisements the CTA wishes to ban promote expression that has constitutional value and implicates core First Amendment concerns.

The ESA further challenged that the CTA ordinance is redundant since videogame-related marketing is already regulated by the Entertainment Software Rating Board’s (ESRB) Advertising Review Council.

ESA President Michael Gallagher was obviously pleased:

This ruling is a win for Chicago's citizens, the video game industry and, above all, the First Amendment. It is our hope that the CTA sees the futility of pursuing this case further. To do so will waste taxpayer money and government resources.

The Federal Trade Commission’s (FTC) seventh report on Marketing Violent Entertainment to Children (PDF) contains good news for the videogame industry.

The FTC review labeled the games industry the "strongest” of the three entertainment sectors (games, music and movies), when it came to self-regulation. The Commission added that the game industry “did not specifically target M-rated games to teens or T-rated games to younger children.“ Additionally, compliance with the Entertainment Software Rating Board (ESRB) code within the videogame industry was “high in all media.”

Undercover shopping stings run by the FTC reported that retailers were “strongly enforcing” age restrictions for M-rated games, with “an average denial rate of 80%.” GameStop and Target were labeled as top enforcers. Toys R Us however, was specifically labeled as trailing when it came to enforcement, with only a 56% denial rate. The report called the use of gift cards to buy games online a “potential gap in enforcement.”

On the advertising side, the FTC found that game companies demonstrated a “high degree of compliance” when it came to television ads, with only a “few instances” of non compliance over a more than two-year period. The same description was used to depict compliance with videogame print ads.

FTC suggestions aimed directly at the game industry were adding content descriptors to the front of videogames, alongside ratings, and to continue to provide more detailed rating summaries online for parents. Additionally, all three industries were told to pay more attention to compliance within online and viral marketing campaigns.

Entertainment Software Association (ESA) President and CEO Michael D. Gallagher was understandably happy about the report, saying, "Today's FTC report is a strong acknowledgement and validation that industry-led self-regulation efforts are the best way to provide parents and retailers with the resources and support they need to keep our kids' entertainment experiences suitable."

The ESA press release also included a quote from National Institute on Media and the Family (NIMF) head, Dr. David Walsh, who stated, “We join the FTC in applauding the industry's progress. The advancement in technology including parental controls by console makers, identification checking by retailers, and an ongoing effort to improve ratings illustrates that the members of the video game industry have taken our concerns seriously and continue to make sure that kids enjoy games that are age appropriate."