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Video Game Boom Is Also Magnifying Industrys Ongoing Problems

The pandemic has sent Hollywood into a tailspin, plunged travel into its deepest funk in memory, and left restaurant owners on the brink of starvation. And video game makers? Theyre thriving.

People stuck at home for months picked up controllers and consoles to ease the lockdown blues by stealing cars, hunting zombies, and planting trees in villages full of talking animals. The industrys second-quarter U.S. sales jumped 30% from the previous year, to $11.6 billion, according to researcher NPD Group Inc. Shares of Activision Blizzard Inc. are up 46% this year, Nintendo Co.s profits quintupled from April through June, and Robloxa game platform where kids hang out and teachers sneak lessons into the mixclimbed from 115 million users in February to 150 million in July. Electronic Arts Inc., maker of games such as Madden NFL and FIFA soccer, says it added tens of millions of new players during the outbreak. This is an unprecedented time, and it was an unprecedented first quarter for our business, Andrew Wilson, EAs chief executive officer, told investors on July 30.

The boom has supercharged what was already an extremely lucrative business. Gaming companies are developing franchises along the lines of Hollywoods endless streams of sequels, but games can rake in far greater sales than even the biggest filmswith no need to fret about bruising actors tender egos. The biggest video games are much more profitable over time than any movie thats ever been made, says Matthew Kanterman, an analyst with Bloomberg Intelligence.

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In the lockdown, at least one player has been emboldened to take on the behemoths of tech. Epic Games Inc. is battling Apple Inc. and Google over the 30% cut the companies take from game sales on their platforms. Epic says the feewhich has its roots in 1980s Japan and the era of chunky cartridges and primitive consolesis outdated and unfair. Epics Fortnite, estimated to generate more than $1 billion a year from in-game sales of cosmetic extras, has given players the option to buy add-ons directly. That cut out Apple and Google, prompting them to remove Fortnite from their app stores.

Even before the pandemic, 2020 was primed to be a blockbuster year, with a host of top-line titles teed up. And this fall, Sony Corp. and Microsoft Corp. will release their powerful next-generation consoles, the PlayStation 5 and Xbox Series X, heralding richer graphics. For gamers thats a big deal, as these generational leaps come around only about once every seven or eight years, so theyll shape the gaming landscape for the next decade.

Sony will continue its strategy of exclusive games such as The Last of Us Part II, a post-apocalyptic action thriller with cinematic production values that has filled the gap left by shuttered movie theaters. Microsoft is going all-in on Xbox Game Pass, a subscription service thats like the Netflix of gaming, offering access to hundreds of titles for $5 to $15 per month. Thats good for the software giant, because the next installment of its Halo franchise has been delayed, leaving the new Xbox without a flagship attraction. Microsoft is aware that the most effective weapon in their arsenal is the Xbox Game Pass, says George Jijiashvili, an analyst at research company Omdia, who expects Sonys new console to outsell the Microsoft machine. If they cant compete on hardware sales, they need to compete in other areas.

Yet while the industry is among the most sought-after places to work these days, many people who make games feel exploited and discriminated against. Across the industry, coders and designers describe a frat-house mentality and hostility toward women. So-called crunchtoiling nights and weekends with little or no extra compensation for weeks or monthsremains a systemic problem. And the industry still embraces employing permatemps, who work alongside full-time colleagues but lack benefits and job security.

Although video game makers have undeniably prospered in the pandemic, it has taken its toll on productivity and will slow the arrival of titles due this fall and into 2021. With the shift to working from home, almost half of developers say theyve been spending more time in front of their screens but getting less done, according to a July survey by the Game Developers Conference. And a third of participants said the outbreak had delayed some titles: In addition to Halo Infinite, dozens of releases have been postponed. If the delays keep getting extended and the recession eats into consumer spending, the buoyant mood might grow more somber. The uncertainties and unknowns could give a Tolstoy novel a run for its money, says NPD analyst Mat Piscatella. We have the pandemic, the election, unemploymentthe list goes on and on. With Dina Bass

Then answer the following questions:

1: What is your opinion about the article?

2. Is it fair for Apple (iOS) and Google (Android) to skim 30% from Epic's Fortnite revenues? How can Epic respond?

3. Is the culture of sexism and misogyny among game designers something that can be changes?