page_title: Video game
section_title: Industry
hierarchical_section_title: Video game / Industry
caption_attribution_description: Los Angeles #7
context_page_description: A video game is an electronic game that involves interaction with a user interface or input device, such as a joystick, controller, keyboard, or motion sensing devices, to generate visual feedback on a two- or three-dimensional video display device such as a TV set, monitor, touchscreen, or virtual reality headset. Video games are augmented with audio feedback from speakers or headphones, and optionally with other types of feedback systems including haptic technology.
  Video games are defined based on their platform, which include arcade games, console games, and PC games. More recently, the industry has expanded onto mobile gaming through smartphones and tablet computers, and remote cloud gaming. Video games are classified into a wide range of genres based on their type of gameplay and purpose.
  The first video games were simple extensions of electronic games using video-like output from large room-size computers in the 1950s and 1960s, while the first video games available to consumers appears in 1972 through way of the Magnavox Odyssey home console, and the 1971 release of the arcade game Computer Space, followed the next year by Pong.
context_section_description: Video games have a large network effect that draw on many different sectors that tie into the larger video game industry. While video game developers are a significant portion of the industry, other key participants in the market include:
  Publishers: Companies generally that oversee bringing the game from the developer to market. This often includes performing the marketing, public relations, and advertising of the game. Publishers frequently pay the developers ahead of time to make their games and will be involved in critical decisions about the direction of the game's progress, and then pay the developers additional royalties or bonuses based on sales performances. Other smaller, boutique publishers may simply offer to perform the publishing of a game for a small fee and a portion of the sales, and otherwise leave the developer with the creative freedom to proceed. A range of other publisher-developer relationships exist between these points.
  Distributors: Publishers often are able to produce their own game media and take the role of distributor, but there are also third-party distributors that can mass produce game media and distribute to retailers. Digital storefronts like Steam and the iOS App Store also serve as distributors and retailers in the digital space.
  Retailers: Physical storefronts, which include large online retailers, department and electronic stores, and specialty video game stores, sell games, consoles, and other accessories to consumers. This has also including a trade-in market in certain regions, allowing players to turn in used games for partial refunds or credit towards other games.
  Hardware manufacturers: The video game console manufacturers typically require a license to develop for their platform and may control the production of some games, such as Nintendo does with the use of game cartridges for its systems. In exchange, the manufacturers may help promote titles for their system and may seek console exclusivity for certain games. For games on personal computers, a number of manufacturers are devoted to high-performance "gaming computer" hardware, particularly in the graphics card area. A range of third-party manufacturers also exist to provide equipment and gear for the console hardware makers, such as additional controllers for console or carrying cases and gear for handheld devices.
  Journalism: While journalism around video games used to be primarily print-based, and focused more on post-release reviews and gameplay strategy, the Internet has brought a more proactive press that use web journalism, covering games in the months prior to release as well as beyond, helping to build excitement for games ahead of release.
  Influencers: With the rising importance of social media, video game companies have found that the opinions of influencers using streaming media to play through their games has had a significant impact on game sales, and have turned to use influencers alongside traditional journalism as a means to build up attention to their game before release.
  Esports: Esports is a major function of several multiplayer games with numerous professional leagues established since the 2000s, with large viewership numbers, particularly out of southeast Asia since the 2010s.
  Trade and advocacy groups: Trade groups like the Entertainment Software Association were established to provide a common voice for the industry in response to governmental and other advocacy concerns. They frequently set up the major trade events and conventions for the industry such as E3.
  Gamers: The players and consumers of video games, broadly. While their representation in the industry is primarily seen through game sales, many companies follow gamers' comments on social media or on user reviews and engage with them to work to improve their products in addition to other feedback from other parts of the industry.
caption: E3 2012 in Los Angeles is one of the typical trade show events of the video game industry.
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