 highest performance game they can support. For example, an XBox 360 might be used to play a game like “Gears of War”, which demands a high performance CPU, GPU, and hundreds of megabytes of RAM, or the XBox 360 might be used to play Pac Man, a game from the 1970s that requires only kilobytes of RAM and a very low performance CPU. Indeed, an XBox 360 has enough computing power to host many simultaneous Pac Man games at once.
Video games machines are typically turned off for most of the hours of a week. According to a July 2006 Nielsen Entertainment study of active gamers 13 years and older, on average, active gamers spend fourteen hours/week playing console video games, or just 12% of the total hours in a week. This means that the average video game console is idle 88% of the time, which is an inefficient use of an expensive resource. This is particularly significant given that video game consoles are often subsidized by the manufacturer to bring down the purchase price (with the expectation that the subsidy will be earned back by royalties from future video game software purchases).
Video game consoles also incur costs associated with almost any consumer electronic device. For instance, the electronics and mechanisms of the systems need to be housed in an enclosure. The manufacturer needs to offer a service warranty. The retailer who sells the system needs to collect a margin on either the sale of the system and/or on the sale of video game software. All of these factors add to the cost of the video game console, which must either be subsidized by the manufacturer, passed along to the consumer, or both.
In addition, piracy is a major problem for the video game industry. The security mechanisms utilized on virtually every major video gaming system have been “cracked” over the years, resulting in unauthorized copying of video games. For example, the Xbox 360 security system was cracked in July 2006 and users are now able to download illegal copies online. Games that are downloadable (e.g., games for the PC or the Mac) are particularly vulnerable to piracy. In certain regions of the world where piracy is weakly policed there is essentially no viable market for standalone video game software because users can buy pirated copies as readily as legal copies for a tiny fraction of the cost. Also, in many parts of the world the cost of a game console is such a high percentage of income that even if piracy were controlled, few people could afford a state-of-the-
highest performance game they can support. For case, an XBox 360 might be use to play a game like “ Gears of War ”, which necessitate a high performance CPU, GPU, and hundred of megabytes of RAM, or the XBox 360 might be used to play Pac Man, a plot from the seventies that requires only kilobyte of RAM and a very low performance CPU. Indeed, an XBox 360 has adequate computing power to host many coincident Pac Man games at once. 
 Video game machine are typically turned off for most of the hours of a week. accord to a July 2006 Nielsen Entertainment study of active gamers 13 years and older, on average, active gamers spend fourteen hour / week playing console video games, or barely 12% of the total hours in a week. This means that the average video game console is idle 88% of the time, which is an inefficient use of an expensive resource. This is particularly significant given that video game console table are often subsidized by the manufacturer to fetch down the purchase price (with the expectation that the subsidy will be earned back by royalty from future video game software purchases). 
 Video game console also incur costs associated with almost any consumer electronic device. For instance, the electronics and mechanism of the systems need to be housed in an enclosure. The manufacturer needs to offer a service guarantee. The retailer who sell the system needs to collect a margin on either the sale of the arrangement and/or on the sale of video game software. All of these factors lend to the cost of the video game console, which must either be subsidize by the manufacturer, passed along to the consumer, or both. 
 In summation, piracy is a major problem for the video recording game diligence. The security mechanisms utilized on virtually every major television gaming system have been “ cracked ” over the years, resulting in unauthorized copying of television games. For example, the Xbox 360 security system was cracked in July 2006 and users are now able to download illegal copies online. Games that are downloadable (for example, games for the PC or the Mac) are peculiarly vulnerable to piracy. In certain regions of the worldly concern where piracy is weakly policed there is basically no viable market for standalone video game software because users can buy pirated copies equally readily as legal copies for a tiny fraction of the cost. Also, in many parts of the world the cost of a plot console is such a high percentage of income that even if piracy were controlled, few people could afford a state - of - the-
 hihhest performance game tmey can support. Yir exakple, ah XBox 360 oight be used to play a game luke “Gtcrs of War”, which demxnds a hihh perfoemanre CPU, GPU, and hnhdreds of megznytes if RAM, or the WBox 360 might be used to pldy Pcc Man, a game from the 1970s that requirqs only kllobytes of RAI anc a vsgy low performance CPU. Indeed, ah XBox 360 has enough cpmputing power to host manj silultaneous Pac Man games at obce.
Vyeeo games mazhines are typically torned off for most of the hours uf a ceek. Accordunt tl a July 2006 Nixlsen Vntertainment study ox activr gamers 13 yearx aid ooder, on average, activx gamers spend fourtgen hours/waei playing console vudeo camev, or husg 12% kf tge totwl iours in a seek. This mwans that the averabe nodeo game cohsole ys idle 88% of the time, which is an inefficitnt uae of an expensive resoyrce. This is particulwrly signyficant given that video game consoles are often vubsivixed bn thd mwnufacturer to bring down the purchase price (rjtn nhe expectation tmat the subsidy wikl br earned back cy roycmtjes from future vifeo gamg softqare purcrasex).
Video game consoles also ibcur costs afwociated with almodt any consbmer ekectrpnic device. For instancz, the slectronics and mechzvisms of the sysgemx teed to be housed in an enslosure. Tie mauufacturdr ngeds to offer a sfrvicc warranty. The retaller cho salls the sjstem needs to collect a margin on either the sdle of the fystek and/or on thq sale of videp game foftwxre. All of these hactors add eo the cost ox the video geme consoje, wyich must ekgher be subsidozed by tkt manufactyrer, passed along bo thg donsumer, or botk.
Nn addition, piracu ir a mwjpr [roblem for dhe xiddp gamd indusuxy. Bhe secirity mechanisms utinizes on virtually evety major vudeo gamyng system hafe been “cracked” ovtr the yeers, rexuljing in unauthorized copying of video gales. For example, the Xbox 360 securnty system was cracked in July 2006 and userw are now able to eownload illegal cokiex online. Gakes trat are dmwnloadable (e.g., games for the PC or tht Mac) are particularly bulnerdble ho piracy. In certain regions of the world where piracy is weakly policed rhere ms essentiallg no viabne karket for rtandalone video game software because users cai buy piradeb copies as readily as legal vooies for a tivy fraction of the cost. Zlso, in kany parts of the world the cosy of a game console is smch a higy perdentagv oh income that even ig piraey werw contrillef, few people zoukd afford a staue-of-che-
highest performance game they can support. For XBox might be to play a which a high performance GPU, and hundreds megabytes of RAM, or the XBox might be used to play Pac Man, a game from the 1970s that only kilobytes of RAM and a very low performance CPU. Indeed, an XBox has computing to many simultaneous Pac Man games at once. Video games machines are typically turned off for most the hours of a week. According to a 2006 Nielsen Entertainment study active gamers 13 years and on active gamers fourteen playing video games, or 12% of the total hours in a week. This means that the average video game console is 88% of which is inefficient of expensive resource. This significant given that video game consoles by the manufacturer to bring down the purchase (with the that the subsidy will be earned by royalties from future video game software purchases). game consoles also incur costs associated with almost any consumer electronic device. For instance, the mechanisms of the systems to be housed an The needs offer a warranty. The retailer who sells the system needs to collect a on either the sale of the system and/or on the video software. All of factors add to the of video game console, which be by along the or both. In addition, is a major problem for video game industry. The every major video gaming system have been “cracked” the years, resulting in unauthorized copying of games. For example, the Xbox 360 security system was cracked in July and users able to download illegal copies online. Games that downloadable (e.g., games for PC or the Mac) are particularly vulnerable to piracy. certain of the where piracy is policed there is no viable market video game because can as readily as legal copies for tiny of the cost. Also, in parts world the cost of a game console is such a high percentage of income that piracy were controlled, few could a state-of-the-
 highest performance game theY can supporT. For eXamPle, An xBox 360 MighT be used to play a GAme lIke “Gears of War”, which demaNds a hIgH PerfORmAnce CpU, GPU, anD HuNDRedS oF mEgaByTEs Of RAM, Or tHe XBox 360 mIght be used To pLaY Pac Man, a game FRoM the 1970s that rEquIres only kiloBytEs of RAm aNd a VEry loW peRformAnce CPu. indeed, An XBox 360 has EnOUgh comPUting poWER tO hosT many simultaneous pAc mAn games at once.
VIdeo gaMeS MaCHIneS arE typically TuRned oFF for mosT Of THE HouRS of a week. AccorDing to a July 2006 nIelSen EntErTaiNMent stUdy of AcTIve Gamers 13 years And oLder, on aveRage, acTIve gameRS spend fOurteeN hoUrs/Week PLaYiNg cOnSOle VIdEo gAMes, Or just 12% of ThE tOtal hOurs IN A WEek. THis MeanS that The average vidEo gAme cONsoLe is iDle 88% of The tImE, whicH is an iNeffiCiEnt use of an expenSive Resource. THis Is ParTiCularLY signiFicAnt Given thAt video GAme CoNSOLeS are often subsidizeD bY THe ManufactUrer to BRiNg DOwn the puRcHasE priCE (With tHe exPEcTation thAt the sUBsIdY will be EaRned baCk By rOyaLties FRom fUture vIdeo game SoftwARe purchases).
VidEO game consoles ALsO INcUR cosTs aSsociated wiTh alMOst aNy coNSuMer ELectrOnic dEvICe. fOr instance, the electrOnIcs and MechaNisms of the sysTems need to BE HOused in aN encLOsURe. The manufactuRer neEds to offer A Service wArranTy. The retAiler who sELLs the sysTem NeeDs tO coLLEcT a margin on eitHER the SaLe of the SysTem and/oR on The SalE of ViDeo game soFtware. AlL oF tHeSe FacTors aDD to the coSt Of tHe VidEo gamE ConsolE, whicH musT eItHEr bE subsidIZeD BY the MaNuFactUreR, pAssed AlonG To tHe consuMer, or both.
in aDDitiOn, PiRacy is a Major problem fOr The video gaMe IndUstry. THE Security Mechanisms utilized on virTUally evEry Major VideO gaming sySteM have bEen “CRacked” Over thE yearS, rEsuLTIng in UNAuThoRiZed copying OF VidEo gamEs. for eXample, tHe Xbox 360 security systEM waS cracked in JulY 2006 anD useRS ArE noW AbLE to DoWNloAD Illegal copies onLine. Games tHaT ArE downloadaBLe (e.G., gAmes for The PC or The MaC) Are partIcularly vUlnerable To PiraCY. in cErtain regiOns of the World wherE PiracY Is WeaklY poLiced tHeRe iS esseNtiallY No vIable Market FoR standAlone ViDeo game sOftware because users can bUy piraTed coPieS as readilY as LEgaL copies foR a tiNy fraction Of tHe cOst. AlSo, iN Many pArts OF tHe wORld thE cosT Of a game coNSoLe iS SUcH a high perceNTAGe oF incoMe tHAt even If piRacy were controlleD, Few people could AffoRD A stAte-OF-the-
 highest performance gamethey can s uppor t.For  e xamp le,an XBox 360 mi g ht b e used to play a gamelike“G e arso fWar”,  whichd em a n dsahi ghpe r fo rmanc e C PU, GPU , and hund red sof megabytes of  RAM, or t heXBox 360 mig htbe use dtop lay P acMan,a game from t he 1970sth a t requ i res onl y ki loby tes of RAM and av er y  low performan ce CPU .I nd e e d,anXBox 360 h as  enou g h compu t in g p owe r  to host many  simultaneo u s P ac Man  g ame s  at on ce.
V id e o g ames machin es a re typica lly tu r ned off for mos t of t hehou rs o f  a  w eek .A cco r di ngt o a  July 20 06  N ielse n En t e r t ainm ent  stu dy of  active gamer s 1 3 ye a rsand o lder,  onav erage , acti ve ga me rs spend fourte en h ours/week  pl ay ing  c onsol e  video  ga mes , or ju st 12%o f t he t o ta l hours in a week.  T h i smeans th at the av er a ge video  g ame  con s o le is  idl e  8 8% of th e time ,  w hi ch is a nineffi ci ent  us e ofa n ex pensiv e resour ce. T h is is particul a rly significa n tg i ve n  tha t v ideo game c onso l es a re o f te n s u bsidi zed b yt he manufacturer to bri ng  downthe p urchase price  (with the e x pectatio n th a tt he subsidy wil l beearned bac k  by roya lties  from fu ture vide o game sof twa repur cha s e s) .
Video gamec o nsol es  also i ncu r costs  as soc iat edwi th almost  any con su me rel ect ronic device.Fo r i ns tan ce, t h e elec troni cs a nd  m e cha nisms o f  t h e  sys te ms  nee d t obe ho used inan encl osure. Th e m a nufa ct ur er need s to offer ase rvice warr an ty.  The r e t ailer wh o sells the system need s  to col lec t a m argi n on eith erthe sa leo f thesystem  and/ or  on t he sa l e  o f v id eo game so f t war e. Al lof t hese fa ctors add to the c o stof the videogam e co n s ol e,w hi c h m us t  ei t h er be subsidize d by the m an u fa cturer, pa s sed  a long to  the co nsume r , or bo th.
In ad dition, p ir acyi s  amajor prob lem forthe video gamei nd ustry . T he sec ur ity  mech anisms uti lized  on vi rt uallyevery  m ajor vid eo gaming system have b een “c racke d”over theyea r s,resulting  inunauthoriz edcop yingofv ideogame s .For examp le,t he Xbox 3 6 0sec u r it y system wa s c rac ked i n J u ly 200 6 an d users are now a b le to download  ill e g alcop i es o nl ine. Games tha t a re d ownloada bl e (e.g., ga mes forth e  PC o r theMac) a re part i c ul a rly vu lner abl e to pira cy.  I n  certai nre g ions o f th eworldwherep irac y is weakly police d the r e  is e s sen tiall yno viab l e ma rket for s tandalone v ideo g amesoftw are bec au se use rsca n buy pira t ed copies  as r eadilyas  leg alcopies  for a  tiny  fra ct ion  of the c o s t. Al so ,  in  man y par ts  ofthe world the cost  of a gameco nso l e  is su c ha high perce nta ge of i ncome that even if pirac y were  contr olled,f ewpe ople co uld a fford a s tate-of-t h e-
 highest_performance game_they can support. For_example, an_XBox_360 might_be_used to play_a game like_“Gears of War”, which_demands a high_performance_CPU, GPU, and hundreds of megabytes of RAM, or the XBox 360 might be_used_to play_Pac_Man,_a game from the 1970s_that requires only kilobytes of_RAM and_a very low performance CPU. Indeed, an XBox_360_has enough computing_power to host many simultaneous Pac Man games at_once.
Video games machines are typically turned_off for most_of_the_hours of a week._According to a July 2006 Nielsen_Entertainment study of active gamers 13_years and older, on average, active gamers_spend fourteen hours/week playing console video_games, or just 12% of_the total_hours in a week. This_means that the_average video_game console is_idle 88% of the time, which_is an inefficient_use of an expensive resource. This_is_particularly significant given_that_video_game consoles_are often subsidized_by_the manufacturer_to_bring down the purchase price (with_the_expectation that the subsidy will be earned_back by royalties from_future_video game software purchases).
Video_game consoles also incur costs_associated with almost any consumer electronic_device. For_instance, the_electronics and mechanisms of the systems need to be housed in_an enclosure. The manufacturer needs to_offer a service warranty._The retailer_who_sells the system_needs_to collect_a margin on either the sale of_the system_and/or on the sale of video_game software. All of_these_factors add to the cost of_the video game console, which must_either be subsidized by the_manufacturer,_passed_along to the consumer, or_both.
In addition, piracy is a major_problem for the_video game industry. The security mechanisms utilized_on_virtually every major video gaming system_have_been “cracked” over the years, resulting_in_unauthorized_copying of video games. For_example, the Xbox 360 security system_was cracked in July 2006 and users are now_able to download_illegal copies online. Games that_are_downloadable_(e.g., games for the PC or the Mac) are particularly_vulnerable to_piracy. In certain_regions of the world where piracy is weakly policed there_is essentially no viable market for standalone_video game software because users can buy pirated copies as readily_as legal copies for a tiny fraction of_the cost. Also, in many parts of_the world the cost_of_a game console is such a high_percentage_of_income_that even if_piracy were controlled,_few people could_afford a_state-of-the-