It's more than just the pixels.

www.news.ubc.ca

The economic principle I’m exploring is “People generally respond to incentives in predictable ways. ” 

My research question to help me study the economic principle is “What so great about working in a video game company” The article published by CNBC entitled “Video Games Impact the Economy More Than You Think” demonstrates this economic principle because it shows, How big video games can be.

 First, Video game companies made a lot of money for our economy. From the article by CNBC author Chris Morris says, ¨A new study from Economists Incorporated reports that the video game industry added $4.95 billion to the U.S. Gross Domestic Product last year—and the entertainment side of the software world is growing considerably faster than other segments of the economy¨. Companies have been making a massive increase in our economy which helps out a lot.

 Second, the companies have also have hired a whole lot of new employees. From the article by CNBC author Chris Morris says, ¨On the employment front, while other industries have been cutting back their payrolls, there’s a hiring boom going on in the video game world. Since 2005, the total number of people working in games has increased by nearly 9 percent annually¨. Companies are hiring more and video games are becoming a more popular thing.

 Third, employees make a lot of money from working for these companies. From the article by CNBC author Chris Morris says, ¨On average, industry employees receive an annual compensation of $89,781, with the industry total hitting $2.9 billion. (A note to jobseekers, salaries were much higher at publishing companies—averaging over $112,000 versus roughly $76,000 at smaller game development studios.)¨ Just because there is some money involved in making a video game does not mean you do not get a part of the income. In my next blog post I will research: What are main concepts in video games that make them so popular.