Games industry worth $10.5 billion

Associated Press

LOS ANGELES — Computer and video games now represent a $10.5 billion industry that eventually could rival the market for movies, according to a trade organization study.

Game sales have grown 15 percent a year from 1997 to 2000, according to a state-of-the-industry report released last week by the Interactive Digital Software Association, a group that represents video game makers.

The industry's total value was based on game publishing, transportation, wholesale and retail sales, and other related areas. The industry also created more than 219,000 jobs and paid $7.2 billion in wages in 2000, according to the study. Retail sales of computer and video game hardware and software totaled about $7.8 billion.

By comparison, domestic movie ticket sales reached $7.7 billion in 2000, while DVD and videocassette tape sales hit about $10.8 billion, according to firms that track the film industry.

"The lines will cross soon if the growth projections that we see are true," said Doug Lowenstein, president of the software association. "This industry is going to be growing at 50 to 75 percent over the next four or five years."

Analysts expect a big burst of growth for computer and video games this year, when Microsoft, Sony and Nintendo introduce a new generation of consoles in time for the holidays. Depending on the game platform, the equipment will feature high-speed Internet access, the ability to play DVD movies and advanced game-playing capacity.