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Take for example South Korea. Computer games are huge business worldwide. A large number of summer blockbuster films spawn a companion game, often launching at the same time in order to share the marketing costs. The game and film industries are also becoming increasingly intertwined, with companies like Sony having significant stakes in both.

This is untrue; in the United States, video game sales have exceeded the movies' total box office revenue each year since about 1996, but the movie studios trounce the video game publishers when the movies' "ancillary revenue" is counted, meaning sales of DVDs, sales to foreign distributors, and sales to cable TV, satellite TV, and broadcast television networks. There is a commonly repeated, mistaken belief that video game sales now exceed the revenues of the movie industry. Retail PC game sales have been declining slightly each year since about 1998, but this fact should be taken with a grain of salt: the retail sales numbers from NPD do not include sales from online downloads, nor subscription revenue for games like MMORPGs. These figures are sales in dollars, not units; unit shipments for each category were higher than the dollar sales numbers indicate, as more software and hardware was sold at reduced prices compared to 2003.

It reported that as of 2004:. The NPD Group tracks computer and video game sales in the United States. In South Korea, computer games are preferred, especially MMORPG games and real-time strategy games; there are over 20,000 PC bang Internet cafes where computer games can be played for an hourly charge. Japanese consumers avoid computer games and instead buy video games, with a strong preference for games created in Japan, that run on Japanese consoles (1 reason the Xbox series is less popular).

Sales of different types of games vary widely between these markets due to local preferences. [3]. China is not considered a significant market, most likely because an estimated 95% of video games sold in the country are pirated. Other significant markets include Spain, Germany, South Korea, France, and Italy.

The four largest markets for computer and video games are the United States, Japan, Canada and the United Kingdom. The average age of the video game player is now 30 [2], belying the myth that video games are largely a diversion for teenagers. The popularity of computer and video games, as a whole, has been increasing steadily ever since the 1984-1987 drop-off caused by the video game crash of 1983, and the popularity appears to be continuing to increase. This term has now expanded to include any game that has more direct action, with fewer long term objectives, focuses on time limits and, for the most part, shorter in-game levels.

Arcade games that are no longer profitable to lease can be purchased by private individuals, many of whom then explore the game dynamics by altering the programs in minor ways. Controls are similar to those available for many consoles (albeit usually as peripherals) and range from the classic joystick and buttons (Pac-Man), to light guns (Duck Hunt), to pads on the ground that sense pressure (Dance Dance Revolution). These are programmed, equipped, and decorated for a specific game, consisting of a video display, a set of controls, and the coin slot. Arcade games, traditionally, are "coin-operated games", played on a standalone device originally leased to commercial entertainment venues.

Because they are designed to be played on the go, they were traditionally small enough to carry conveniently in a bag or jacket (the Virtual Boy being an exception to this), but due to their small size, handheld consoles have reduced processing power compared to larger consoles, meaning that games are shorter, and until the release of the Nintendo DS, were largely limited to 2D. Handheld consoles act as their own controllers, which the player uses to interact with the game, as well as having in-built display and audio output devices. Handheld games are played on handheld game consoles, such as the Nintendo Game Boy line, the Nintendo DS and the Sony PSP. Consoles themselves branched off from personal computers around two decades ago, a fact which is still evident not only in the name, but also in many of the peripherals available for many consoles, like the keyboard and mouse peripherals released for the Sony PlayStation 2 and the Sega Dreamcast.

The player usually interacts with the game through a controller, and video and sound are typically delivered to the player via a television through composite A/V cables, although most modern consoles support additional outputs, such as surround sound, progressive scan, and High Definition setups through the use of component cables. Console games are played on a video game console,or "home console", a specialized computer specifically designed to play games of a certain format. Some of these games, such as Runescape, however, have expanded far beyond this, and can often be considered on the same level as "mainstream" PC games. Some are on going user-based games that have no ending.

These games generally do not share the same magnitude of development costs, depth, or seriousness of PC and console games, and are generally quick to complete by comparison. The Internet is also host to thousands of small web-based games, written using formats like Flash and Javascript. Online games need to allow several people to play at the same time, so not all genres are suitable; the most popular genres include MMORPGs, FPSs, racing/driving games, strategy games, and sports titles. It is now a key feature of modern games, with the inclusion of Internet connectivity in consoles such as the PlayStation 2, Xbox and Gamecube (although it was only fully exploited on the Xbox); portable consoles such as the PSP or DS that use Wi-Fi, and in mobile/cellular phones.

The first console to incorporate this feature was the Sega Dreamcast. Online gaming began with PC games, but has expanded over time to include most modern consoles. Online Games are those which are played over the Internet. Ease of software piracy is also a much greater threat with PC games, although console hardware modifications do make it possible to play pirated games on them as well.

Without the proper hardware, the game may perform poorly or not run at all, as opposed to console software, in which the software is designed based on the set hardware configuration of the console. One possible explanation for the declining sales of personal computer games in relation to that of consoles can be found within the PC itself: a computer must meet certain minimum requirements such as CPU speed, Random access memory (RAM), system clock speed (MHz or GHz), video card memory, hard drive space, operating system, Internet connection speed (for online games) and other criteria. For more information, see sales. According to the Entertainment Software Association, console games have outsold computer games roughly four units to one in 2003 and 2004 [1].

There is, however, a continuing movement to get the most popular games to run under the Mac and Linux operating systems, although it is still small. Today, most major PC games require a recent version of the Windows operating system to be installed on the computer. PC games are often more detailed than console games because of early market releases of their external architecture and graphics cards. Video feedback is received by the user through the computer screen, sound through speakers or headphones.

They are played on the personal computer with standard computer interface devices such as the keyboard and mouse, or additional peripherals, such as joysticks. Personal computer games are commonly referred to as "computer games" or "PC games". During the last generation of gaming, most major PC game releases have coincided with the release of console versions, and titles initially developed for a single platform are often ported to others if they prove to be successful. Many games intended for PCs are now just as prevalent on consoles, with many developers creating versions for more than one platform.

The final home platform is the PC. The 3 main home video game platform companies are Nintendo, Microsoft, and Sony, who between them have created seven of the eight home platforms most commonly used today. Games are not interchangeable between platforms so, for example, Xbox games will not work in your PC. Personal computers, consoles, handheld systems, and arcade machines are all common.

Today there are many different devices, or platforms, on which games may be played. The increase in the popularity of online gaming has also resulted in sub-genres being formed, such as massively multiplayer online role-playing game (MMORPG). Most games nowadays are a combination of two or more genres (e.g action/RPG). The most common genres in use today include platformer, adventure, role-playing game (RPG), first person shooter (FPS), third person shooter (both these are sometimes refered to as shoot-'em-ups), sports, racing, fighting, action (note that this term is abused often), puzzle, simulation, and real time strategy (RTS).

Games, like most other forms of media, may be categorized into genres based on gameplay, atmosphere, and various other factors. Although the use of this term is often disputed, as it is considered too vague for the range of concepts it describes, it is currently the most commonly used and accepted term for this purpose when describing video games. It includes direct interaction, such as controls and interface, but also design aspects of the game, such as levels and graphics. In computer and video gaming, gameplay (sometimes called "Game mechanics") is a general term that describes player interaction with a game.

The second generation Microsoft offering, the Xbox 360, will be powered by a multi-core CPU, the PlayStation 3 will be powered by Cell processor technology, and the Nintendo Revolution will allow the gamer to interact with the game via a wireless motion sensing controller and promises more innovations, although full technical specifications are yet to be revealed. Sony with the PlayStation 3, Nintendo with the codenamed Nintendo Revolution, and Microsoft with the Xbox 360 are all participating in this coming year's "technology race". The end of 2005 and first and second quarters of 2006 will see the next generation of console gaming in the form of continuing advances in processor technology, graphics technology, design innovation, and even platform specific gaming community infrastructure. In Western countries the consoles have had similar levels of success,the PSP sales being slightly bigger, but in Japan the DS has been a huge hit, vastly outselling the PSP.

The Nintendo DS (DS stands for Dual-Screen) is a highly innovative console, and the PSP is much more powerful and also includes limited media capabilities. The other two more technically advanced handhelds to be released in 2004, the Nintendo DS and the PlayStation Portable (PSP), didn't help the N-Gage. In 2004 Nokia released a re-tooled N-Gage, the N-Gage QD which didn't fare much better. It was criticized for being poorly designed, and flopped.

Nokia entered the handheld market with its N-Gage game-phone hybrid on October 7 2003. Sega became a third-party developer for Nintendo, Sony and Microsoft in 2002. Sega realised they could no longer compete, and announced they would discontinue the Dreamcast and no longer manufacture hardware. Nintendo released their successor to the Nintendo 64, the GameCube, and the first all new Game Boy since the consoles inception, the Game Boy Advance.

Its flagship game, Halo: Combat Evolved, is also available at the system's launch. In 2001 Microsoft entered the videogame console industry by releasing its new home console, the Xbox. It was an instant hit and became the best-selling computer game of all time, surpassing Myst. The Sims was also released.

In 2000 Sony released the widely anticipated PlayStation 2. 1998 saw the releases of the Sega Dreamcast in Japan (1999 in the US) and the Game Boy Color from Nintendo. The Saturn was successful in Japan but a failure in North America, leaving Sega outside of the main competition. By the end of this period, Sony had dethroned Nintendo, the PlayStation outselling the Nintendo 64.

In particular, SquareSoft, which had released all previous games in its Final Fantasy series for Nintendo consoles, now turned to the PlayStation; Final Fantasy VII (1997) was a huge success, establishing the popularity of role-playing games in the west and making the PlayStation the primary console for the genre. Nintendo's choice to use cartridges instead of CD-ROMs for the Nintendo 64, unique among the consoles of this period, proved to have negative consequences. The flagship title, Super Mario 64, became a defining title for 3D platform games. After many delays, Nintendo released its 64-bit console, the Nintendo 64 in 1996, selling more than 1.5 million units in only three months.

Both consoles used 32-bit technology; the door was open for 3D games. In 1994-1995, Sega released Sega Saturn and Sony made its debut to the video gaming scene with the PlayStation. Basic 3D graphics entered the mainstream with flat-shaded polygons enabled by additional processors in game cartridges like Virtua Racing and Starfox. CD-ROM drives were first seen in this generation, as add-ons for the PC Engine in 1988 and the Megadrive in 1991.

The PC Engine eventually lost out to the Super Famicom, but retained enough of a user base to support new games well into the late 1990s. In Japan, the PC Engine's (Turbografx 16) 1987 success against the Famicom and CD drive peripheral allowed it to fend off the Mega Drive (Genesis) in 1988, which never really caught on to the same degree as outside Japan. The NEC TurboGrafx 16 was the first 16-bit system to be marketed in the region, but did not achieve a large following, partly due to a limited library of English games and effective marketing from Sega. The North American market was dominated by the Sega Genesis early on after its debut in 1989, with the Nintendo Super NES proving a strong, roughly equal rival in 1991.

While some of the other systems remained in production until the mid-90s, the Game Boy remained at the top spot in sales throughout its lifespan. Although most other systems were more technologically advanced, they were hampered by higher battery consumption and less third-party developer support. Several rival handhelds also made their debut around that time, including the Sega Game Gear and Atari Lynx. Included with the system was Tetris, a popular puzzle game.

In 1989, Nintendo released the Game Boy, the first handheld console since the ill-fated Microvision ten years before. See the article on Console wars for additional information on that facet of game history. The last two decades of game history have been marked by separate markets for games on video game consoles, home computers and handhelds. and many others of today's popular Nintendo genre.

The video game crash of 1983, however, produced a dark age in the market that was not filled until the Nintendo Entertainment System (NES) reached North America in 1985.This presented Americans with games such as Mario Bros. The late 1970s to early 1980s brought about the improvement of home consoles and the release of the Atari 2600, Intellivision and Colecovision. He created a system with limited capabilities called the brown box, which paved the way for the next wave of home consoles. The first home console video games, were created by Ralph Baer who is now known as the creator of video games.

The 1970s also saw the release of the first home video game consoles. The paddles were white bars with a dot moving between them. One of the best-known of these games is Pong, a simple game simulating Ping Pong. Arcade games were developed in the 1970s (Pac-man to Frogger) and led to the so-called "Golden Age of Arcade Games".

The first video game was Space War created at MIT in 1962. The first primitive computer and video games were developed in the 1960s and 1970s and ran on platforms such as oscilloscopes, university mainframes and EDSAC computers. . In common usage, "computer game" or "PC game" refers specifically to games played on a personal computer, "console game" refers to games played on specifically-designed set top box, that play through a TV and "video game" (or "videogame") refers to any game played on a device that plays through your TV but also includes PC, Console, Mobile Phone or PDA or other handheld device.

To avoid ambiguity, this game software is referred to as "computer and video games" throughout this article, which explores things common to both types of game. The phrase interactive entertainment is the formal reference to computer and video games. Usually there are rules and goals, but in more open-ended games the player may be free to do whatever they like within the confines of the virtual universe. These terms are not always interchangeable as some games, particularly older games, do not use a video display.

A video game is a computer game where a video display such as a monitor or television is the primary feedback device. A computer game is a computer-controlled game that players may interact with. PC game sales: $1.1 billion, down 2% from 2003 [6]. Console and portable hardware and accessory sales: $3.7 billion, down 35% from 2003 [5].

Console and portable software sales: $6.2 billion, up 8% from 2003 [4]. For specific information regarding "console games" or, see console game.. For specific information regarding "computer games", see personal computer game..