ESA’s Michael Gallagher Answers 10 Questions

Wed, Nov 26, 2008

Earlier today on Game Daily, Michael Gallagher, CEO of the Entertainment Software Association (ESA) answered 10 user-submitted questions ranging in topic from Barack Obama to piracy to his top picks for the holiday season.

Gallagher, a former Assistant Secretary of Commerce for Communications and Information at the National Telecommunications and Information Administration (NTIA), was appointed CEO in the spring of 2007, following the resignation of founder and president Doug Lowenstein. Since taking the position, Gallagher has steered the ESA through the closure of its New York office, a reported drop in lobbying expenditure, and the decision of several game publishers not to renew their memberships and to decline to show at E3 -- LucasArts, Vivendi Universal, Activison, NCSSoft, Foundation 9 and Her Interactive among them.

Behind the cut, a few excerpts from the somewhat lengthy but highly interesting Q&A. You can read it in its entirety here.

Now that Barack Obama has been elected, what do you think this means for the video game industry, both from a legislative standpoint and an industry growth standpoint?

First, the ESA looks forward to working with President-elect Obama and his new administration as well as the 61 new Members of Congress and the other new leaders in states across the nation. Many of these new officials are younger and likely grew up with computer and video games. Therefore, they are better positioned to understand our diverse industry and its many positive contributions. We realize there will always likely be controversies. However, many of our key issues enjoy broad bi-partisan support such as encouraging and protecting creativity and innovation while educating and empowering parents.

"I believe the growth and depth of the industry is moving the needle with media coverage of video games, but we have a ways to go to where we are treated with the respect we deserve."

In terms of industry growth, the video game industry is a good news story for our nation and its economy. In a time of foreclosures, job losses and financial uncertainty, our industry is a much needed bright spot. In spite of the current economic woes, sales of our products our increasing; we are a growing source of employment in states across the nation; and we are making large contributions to state and federal tax bases.

[...]

I was excited to hear that E3 is getting big again, but I'm just a consumer, not a member of the industry. Don't you think it would be a good idea to separate a couple days for consumers to attend E3 (similar to TGS)? Wouldn't the ESA welcome the extra revenue from this?

I completely understand your desire to attend. The E3 Expo is and will continue to be the pre-eminent computer and video game event in North America.

However, the E3 Expo has never been a consumer show, even in the past years when it was much larger. Our goal is to gather the industry in one place and show the world a dynamic and high-growth video game industry. Part of that world is our consumer base and there will be lots of ways for them to experience what's going on at the E3 Expo without being there.

[...]

Analysts and executives keep stating that the games industry will weather the recession. However, if the economy continues to worsen in 2009 do you really think video games will be immune? Can the ESA do anything to spur growth for games in bad economic times?

On the whole, our industry is experiencing a period of strong growth. According to NPD's October numbers, this year's sales are up 30% over 2007, which is amazing in light of the current economic climate. We're ahead not only in the traditional areas, but according to PricewaterhouseCoopers, we can expect major growth in new sectors such as broadband, mobile gaming and advertising. These exciting new avenues show that as long as we keep innovating as an industry, we can weather uncertain times. I fully expect that video games will remain the fastest growing and most dynamic form of media in the U.S. in 2009.

[...]

What are your most anticipated video games for this holiday season that you plan to play on your own or with your kids?

That is a very tough question for someone who has the honor of representing the full range of all the great games our industry has and will release this holiday season. So, let me share what my kids are pressing the hardest for: Rock Band 2, Rayman Raving Rabbids TV Party, Shaun White Snowboarding, Little Big Planet, Buzz, and Animal Crossing City Folk. Of course, like many parents of older teenagers, I am also getting lists with titles like Resistance 2, Gears of War 2, Dead Space, and Fable II. But as the ESRB counsels us to do, I may have to play those games first to see if they are OK for the kids.