1 Background, goals and summary

1.1 Introduction and background

The Ministry of Culture and Church Affairs hereby submits a Report to the Storting on video games.

In the course of just a few years, the international video game industry has grown to become one of the largest industries within entertainment and media. In 2006, sales in the international video game market amounted to approximately NOK 190 billion. By way of comparison, sales in the international market for music records and lawful downloading of music amounted to approximately NOK 217 billion. The international film market sold for approximately NOK 487 billion.

The Nordic video game market is developing fast. Sales amount to approximately NOK 4 billion. By way of comparison, the cinema market is worth just over NOK 3 billion. The video game industry is a relatively young industry where most companies operating today have been established during the period after 2001.

Report No. 22 to the Storting (2006–2007), Veiviseren (The Pathfinder), provides the basis for the present report. The report states as follows:

“Video games are a medium that has undergone a rapid technological and artistic development, and has become a major cultural expression. Today, video games are primarily played by children and young people, and form a major part of their daily cultural and media consumption, cf. chapter 3. However, adults also play video games, and increasingly greater demands are imposed on the content and technical quality of the games. Today, games are part of the modern technology and knowledge-based culture industry, where there is a Norwegian company at the forefront of the online games sector. There are also a number of small Norwegian companies that supply games of high quality. However, as a result of the large supply of foreign games, coupled with the limited Norwegian market, small companies have little potential to cover their investments in game development in the Norwegian or Nordic market. This particularly applies to originally developed Norwegian games that are not only extensions of concepts established in other media.

There is a considerable need to ensure a supply to children and young people of alternative productions with Norwegian language and content. In 2007, we will begin to see the results of the state grant scheme for development of interactive productions. It is expected that eleven Norwegian video games will be released in Norway in 2007, of which eight are supported by the Norwegian Film Fund. Some of these games will also be released in the Nordic countries. In the view of the Ministry, the grant scheme has contributed to building up and professionalizing the Norwegian industry. There has been an increase in the number of companies, and a separate producer association and various networks have been established.

The video game industry is experiencing rapid growth, and there is a need for an increased focus on the development of Norwegian video games. The Ministry will return to the Storting with a separate matter concerning this.”

1.2 Main goals

The Government has a vision of Norway as a leading cultural nation that attaches importance to culture in all parts of society. The Government is revitalizing culture and the voluntary sector through targeted measures and general strengthening of artistic, cultural and voluntary work in the fiscal budget. The basis for this cultural focus has been laid through the goal of Kulturløftet [Cultural Endeavour] that 1 per cent of the fiscal budget shall be allocated to cultural purposes by 2014.

Development of video games shall be part of this cultural focus. The video game market constitutes a major and rapidly growing part of the culture and entertainment market. Video games are also a medium that has undergone a rapid technological and artistic development, and are used by an increasing number of people, particularly children and young people. It is therefore important to focus on this cultural expression through a Report to the Storting. Video games provide work and development opportunities to a number of occupational groups within art and culture. They are also a source of pleasure and entertainment for a large number of people in Norway. This sector is therefore an important one.

The Ministry proposes the following goals for state focus on video games:

• Good Norwegian video games of different genres, based on Norwegian language and content.

Video games have become a major part of daily cultural and media consumption of children and young people, and the use of games is on the increase. The market is dominated by imported games. It is therefore particularly important that children and young people have access to games of high quality based on Norwegian language and culture. The ability to ensure this provision is dependent on good support schemes.

• A viable Norwegian game production industry.

As a result of the rising demand for games, the video game industry is a growth industry, which creates new jobs. The Norwegian market is limited, and the companies need good framework conditions in order to achieve continuity and solidity.

• Expertise, innovation and technological development.

Development of video games is a profession founded on creativity, innovation and technical expertise. High quality research and training therefore play a major role in providing the industry with the necessary expertise. Video games may also in themselves be a source of learning and knowledge.

• Safe use of video games.

Certain games contain elements that are not suitable for children. Today, some people use a considerable amount of time on playing video games, and certain games may more easily give rise to dependency than others. Information and consciousness-raising are important measures for ensuring safe use of video games.

1.3 Summary

In chapter 2, the Ministry provides an account of video games as a medium, including the historical development and the various genres and types of game. The chapter also contains an account of the development of individual games from the idea stage to marketing. In chapters 3 and 4, the Ministry provides an overview of the video game industry, with the main emphasis on game development. The industry is described at national, Nordic and international levels. Chapter 5 contains a survey of the use of video games in terms of how often users play and the amount of time they use on playing. The chapter also gives an account of attitudes to Norwegian video games, and describes various forms of social use of games. Chapter 6 provides an account of research and training in the video games field. The Government will conduct a survey of major centres of expertise and of recruitment needs in the video game industry. In chapter 7, an account is given of the various support schemes for development of video games at Norwegian, Nordic and European levels. The Ministry proposes maintaining and strengthening the Norwegian support scheme for development of video games. A support scheme will also be introduced for launch of video games. A public library loan scheme for Norwegian video games will be considered. The Ministry will make active efforts to ensure that the Nordic Games Programme continues according to intentions. The potential for strengthening support schemes for video games by increasing the sectoral levy on the sale of DVDs to include video games will be considered. Chapter 8 describes certain issues associated with video games: violent content, problematical use and illegal copying. The Ministry proposes strengthening of the information activities of the Norwegian Media Authority concerning safe use of video games. The Ministry also intends to strengthen knowledge concerning the prevalence of problematical use of video games, and will allow for the allocation of proceeds from the Norwegian National Lottery to measures against dependency on gambling games also to apply to measures against problematical use of video games. In chapter 9, the Ministry gives an account of the financial and administrative consequences of the proposals presented in the report.