Did you know that there are currently 40 interactive game, simulation, and game engine companies in the Research Triangle region, making us one of the largest such industry hubs in the country?
Talent and quality of living are two compelling reasons game companies chose to locate here, say industry executives who briefed executives of the Raleigh-Durham chapter of the Association for Corporate Growth at an event last week.
Event moderator Troy Knight of BLD25 revealed that 65 percent of households play video games.
The emergence of “social” games has attracted more women to gaming. Two out of five gamers are female. In addition, one of the fastest growing segments of the gamer population is 40 – 50 year old women.
John Farnsworth, VP of Operations for Epic Games, believes that 2013 will be an exciting time for the gaming industry. The next generation of gaming consoles are starting to emerge. Mobile and tablet based gaming is taking off. And monetization strategies are becoming better understood and accepted by consumers.
Online market places like the Apple App Store have created a vibrant ecosystem for startup game companies. These “indie” developers work independent of the major game publishing companies and sell and promote their games directly to consumers through the various app stores. Popular titles can receive millions of downloads per day.
Free-to-play is a very popular publishing model where consumers download and play games for free. The game developer makes money by offering in game “micro transactions” that allow players to purchase power ups, in-game currency, and so on to speed up and enhance their experience in the game.
The average gamer is 32 years old and spends approximately 18 hours a week playing games. This includes time on traditional desktop computers and gaming consoles, as well as mobile and portable gaming devices.
Game industry revenue topped $16 billion in the U.S. last year, easily surpassed Hollywood’s $10 billion in ticket sales for the same period.
According to Chad Denzern, Studio Director for Insomniac Games, funding for game companies remains as tight and elusive as ever. Even crowd-sourced funding options like Kickstarter are becoming crowded making it harder for new companies to get noticed.
Wayne Watkins, Wake County Economic Development, indicated that many indie game companies operate under the radar making it hard to know how many are present in the area.
While entertainment based games get most of the attention, the Triangle Region also hosts a number of serious games companies. These companies use gaming technology for simulation and training purposes. Examples include the department of defense, emergency responders, as well as planning and architecture.
Editor’s note: Kelly Campbell is president and co-founder of Interface Technologies in Raleigh and vice president for technology of the Association for Corporate Growth’s Raleigh-Durham chapter.
