The Economics of Digital Games

Some may wonder why the need to dedicate a chapter to the economic aspects of digital games: after all, digital games are about creativity, eye-to-hand co-ordination, skill and fun, and, to some extent, can be considered a new form of art. Nevertheless, one must not forget that the digital games business is worth several billion dollars per year, that the players are giants such as Microsoft, Sony, and Nintendo, and that games are essentially an industrial product created by companies who, in the long run, must cover all the costs they bear. The chapter will look at digital games as a system, integrating different concepts and explaining their interaction to formalize the business model of the industry