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Interactive MediaCompetitiveness Study
3rd Annual Interactive Media Economic Update LuncheonSeptember 3, 2009
Industry Trends: Update Workforce Needs Regional Competitiveness
September 3, 2009PowerPower ofof PlayPlay
Interactive Media Economic Update Luncheon 2
Gaming
Casual
Core
Serious
Talent
Designers
Programmers
Game Developers
Graphics/ Artists
Distribution Network
Network Engineers
Research & Training
UW
Trade Schools
Community Colleges
DigiPen
Microsoft
TelCos/ Carriers
Mobile/PDA
ICT Infrastructure
PCs
Consoles
Handhelds
Servers & Networks
Advertising
RealNetworks
Virtual Worlds/ Social
Networks
Market Research
Publishers
Technical & Additional Talent
Audio
Video Musicians
Voice-over & acting
Other Colleges and Universities
Medical Applications
Automobiles
Military Aerospace
Manufacturing
Management
Research & Industry
Media Software
Nintendo
Financing
Legal/I.P.
Venture Capital
Professional Services
Management
Professional Associations
Government Programs
September 3, 2009 3
Gaming
Casual
Core
Serious
Talent
Designers
Programmers
Game Developers
Graphics/ Artists
Distribution Network
Network Engineers
Research & Training
UW
Trade Schools
Community Colleges
DigiPen
Microsoft
TelCos/ Carriers
Mobile/PDA
ICT Infrastructure
PCs
Consoles
Handhelds
Servers & Networks
Advertising
RealNetworks
Virtual Worlds/ Social
Networks
Market Research
Publishers
Technical & Additional Talent
Audio
Video Musicians
Voice-over & acting
Other Colleges and Universities
Manufacturing
Management
Nintendo
Financing
Legal/I.P.
Venture Capital
Professional Services
Management
Professional Associations
Government Programs
September 3, 2009 4
Jobs at Established IM Employers, Regionwide, 2006 - 2008
4,430
5,070
Seattle +33%
Seattle +33%
Remainder of Region +9%
Remainder of Region +9%
Puget Sound Region+14%
2007 study found growth from 2000 - 2006•More than 150 companies•More than 15,000 jobs•Jobs at existing establishments doubled from 2000 to 2006
– 12% growth per year (cagr)– Jobs at smaller companies
more than doubled from 2003 – 2006 (26% cagr)
•$4.2 Billion in revenues produced by regional companies in 2006
Since 2006 jobs have grown rapidly•14% among established firms (excl. Microsoft)•Total jobs in the region increased by 6% during the same two years
Industry Trends
September 3, 2009PowerPower ofof PlayPlay
Interactive Media Economic Update Luncheon 5
Artists, Graphic Designers
Programmers, Software Engineers
Admin.Project Managers
50%-80% Firms Hiring
• Currently 170 job postings in region among 40 local firms
• 80% firms that post job information online are hiring
Workforce Needs
September 3, 2009PowerPower ofof PlayPlay
Interactive Media Economic Update Luncheon 6
Growing a company comes with labor challenges:Talent (overall)Software expertsArtists
Workforce Needs
September 3, 2009PowerPower ofof PlayPlay
Interactive Media Economic Update Luncheon 7
A broad array of skills and talents are required Diversity and adaptability trumps specialization
New hires often lack product-oriented and business focus Teamwork skills, task management, project execution, self-teaching “Traditional talent for the gaming industry has wrong skills” “Best talent are kids and we have to train them”
Rapid individual learning required while the product is live and functional Must learn to work fast “Like building 747 out of a flying kite”
Company cultures vary; most have intense and informal culture “Give up your social life and learn to sleep under your desk” “We end each day with a play session, ‘We kill each other for an hour
and then we all go home and come back the next day.’ ” Burn out is a concern
Workforce Needs
September 3, 2009PowerPower ofof PlayPlay
Interactive Media Economic Update Luncheon 8
Engineers and programmers in greatest need and shortest supply
IM companies compete for talent with many industries Online programmers in demand everywhere The best and most popular software packages change quickly
Programming workforce must be able to learn rapidly and productively on the job
Can schools teach someone how to learn on their own? Can schools at least weed out people who can’t? What is the educational role of universities vs. trade schools? Do we need to start at early education to teach people how to teach
themselves?
Regional and web-conferences cited as a key means of learning new software effectively and efficiently
Workforce Needs
September 3, 2009PowerPower ofof PlayPlay
Interactive Media Economic Update Luncheon 9
Technology specialists and artistic capabilities are not always found in the same person
IM companies compete for talent with other industries
Artists resist changing tool and techniques Story boarding skills needed; several
postings for writers Other skills taught: learning human
anatomy, drawing landscapes
Workforce Needs
September 3, 2009PowerPower ofof PlayPlay
Interactive Media Economic Update Luncheon 10
Depth of companies Depth of talent Culture and quality of life
Cost of livingTalent attractors
Training opportunities Business climate and public support
Regional and State ICT infrastructure investments
Cost of doing businessState Incentive programs
Competitiveness
September 3, 2009PowerPower ofof PlayPlay
Interactive Media Economic Update Luncheon 11
• USA has most game development companies of any country in the world.
• Vancouver, Tokyo, Seoul are other world hot spots
• Seattle region has second most Interactive Media companies of any region in the US.
• 10% of all USA companies located in Seattle
• USA has most game development companies of any country in the world.
• Vancouver, Tokyo, Seoul are other world hot spots
• Seattle region has second most Interactive Media companies of any region in the US.
• 10% of all USA companies located in Seattle
Competitiveness
Source: Gamedevmap.com, enterpriseSeattle
Top 10 Countries, Number of Firms
United States
Canada
Japan
South Korea
China
Sweden
Finland
Denmark
Ireland
Norway
Top 10 Regions in USA, Number of Firms
Los Angeles
Seattle
San Jose
Austin
San Francisco
Boston
Chicago
New York
Dallas
Atlanta
September 3, 2009PowerPower ofof PlayPlay
Interactive Media Economic Update Luncheon 12
Competitive Regions
• 45,000 programmers and engineers
• 5th most of any region in USA
• Over 3x more concentrated in Seattle region than US
• 45,000 programmers and engineers
• 5th most of any region in USA
• Over 3x more concentrated in Seattle region than US
Concentration of Programmers and Engineers
(1.0 = US Aggregate)
Total Programmers and Engineers
Source: Bureau of Labor Statistics, 2008, MSA
September 3, 2009PowerPower ofof PlayPlay
Interactive Media Economic Update Luncheon 13
Competitive Regions
• 1,350 multimedia artists and animators
• 4th most of any region in USA
• 4X more concentrated in Seattle region than US
• 1,350 multimedia artists and animators
• 4th most of any region in USA
• 4X more concentrated in Seattle region than US
Concentration of Artists and Animators
(1.0 = US Aggregate)
Total Multimedia Artists and Animators
Source: Bureau of Labor Statistics, MSA, 2008
September 3, 2009PowerPower ofof PlayPlay
Interactive Media Economic Update Luncheon 14
38 states have colleges and higher education schools with curriculum for gaming
1.California 48
2.Florida 21
3.New York 19
4.Texas 19
5.Illinois 16
6.Pennsylvania 13
7.Washington 12
8.Georgia 8
9.AZ, CO, MD 7
Washington State Institutions
Institution City
Art Institute of Seattle Seattle
Bellevue Community College Bellevue
DigiPen Institute of Technology Redmond
Edmonds Community College Lynnwood
Lake Washington Technical College
Kirkland
Seattle Central Community College
Seattle
University of Washington Seattle; Bothell; Tacoma
Clover Park Technical College Lakewood
Hidden Edge 3D Tacoma
Shoreline Community College Shoreline
Cornish College Seattle
SQLSoft, Inc.Bellevue; Everett; Redmond; Olympia
Competitive Regions
September 3, 2009PowerPower ofof PlayPlay
Interactive Media Economic Update Luncheon 15
Regional Considerations
Overall Prices (CPI) Transportation
Housing Property taxes
Taxes Income tax Sales tax Utility tax Gas tax
Schools Quality public schools Private school choices
Source: Council for Community & Economic Research, 2009
September 3, 2009PowerPower ofof PlayPlay
Interactive Media Economic Update Luncheon 16
Regional Considerations
Labor costs Related to Cost of
Living Office and server
space Power and electricity Tax burden
Washington ranks favorably among studies on tax burden
Average Cost of Labor by MSA, Computer Programmers, 2008
Source: BLS
September 3, 2009PowerPower ofof PlayPlay
Interactive Media Economic Update Luncheon 17
Concentration of Workforce Talent Quality of Life Competing Interactive Media Computer Multimedia Educational Cost of Cost of Regions Firms Programmers Artists Institutions Living Business
Seattle
San Jose
San Francisco
Los Angeles
Austin
Boston
Chicago New York Dallas
Atlanta Salt Lake City
Minneapolis
Top 3 4 – 6 7 – 9 10 - 12KEY:
Regional CompetitivenessCompetitive Regions
18
1
2
3
4
Public Support: Incentives Programs
Washington High Technology B&O tax credit program
Texas Moving Image Industry Incentive Program
New Mexico Film production tax credit
Arizona Motion picture production tax incentives
Michigan Film production incentive
Wisconsin Film tax credit
program
Tennessee Visual Content Act of 2006
Florida Entertainment industry financial incentive program
Louisiana LA Digital Media Act
Georgia Entertainment Industry Investment Act
New Jersey Edison Innovation Digital Media Tax
Credit Program
Massachusetts Film tax credit
Connecticut Digital Media and
Motion Picture Tax Credit
Maine Certified media production income tax credit and media wage reimbursement
Incentives
Seattle
San Francisco
Los Angeles
San Jose
Boston
Rhode Island Rhode Island Motion picture Motion picture
production production company tax company tax
creditscredits
New York
Dallas
Austin
Chicago
Indiana Media production expenditure tax credit
Atlanta
Salt Lake
Minn.
September 3, 2009PowerPower ofof PlayPlay
Interactive Media Economic Update Luncheon 19
Incentives
StateCost of
Business
State Incentive Program
Employee Incentives
Local Production Incentives
Sales Incentives
Building Incentives
Equipment Incentives
R&D Incentives
Texas Yes X
Georgia Yes X X X
Utah No
Illinois No
Florida Yes X
Maryland No
Washington Yes X X X
New York No
Mass. Yes X X X
California No
Public Support: Incentives Programs
20
Seattle’s Comparative Advantages Strong cluster with growth momentum Leader in casual games Leader in distribution Strong concentration of programmers and
engineers Training institutions Quality of life appeals to talent
demographics Emerging focus on leveraging wireless
talent and technology
September 3, 2009PowerPower ofof PlayPlay
Interactive Media Economic Update Luncheon 21