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HUH?

[SCREAMING]

NARRATOR: FOR OVER 200,000 YEARS,

MAN SURVIVED WITHOUT VIDEO GAMES.

ONCE THAT CHANGED, THE WORLD WAS NEVER THE SAME AGAIN.

IT'S ME, MARIO.

[SCREAMING]

NARRATOR: THIS IS THE STORY OF EVERYTHING

THAT HAPPENED NEXT.

IN JUST THE LAST FEW YEARS,

VIDEO GAMES HAVE BECOME A SPORT UNTO THEMSELVES

WITH TEAMS, MAGAZINES, COMPETITION, AND ALL...

NARRATOR: IN JUST 50 YEARS,

THE VIDEO GAME INDUSTRY HAS EVOLVED FROM TINY DOTS ON A RADAR SCREEN...

[LOUD EXPLOSION]

...TO FULLY IMMERSIVE 3D GRAPHICS

THAT RIVAL TODAY'S BIGGEST HOLLYWOOD BLOCKBUSTERS.

SAY HELLO TO MY LITTLE FRIEND.

VIDEO GAMES HAVE DONE MORE THAN ENTERTAIN US.

THEY HAVE CHANGED THE WAY WE INTERACT WITH MACHINES FOREVER.

SHOULDN'T YOU GO OUT AND SOCIALIZE WITH YOUR FRIENDS?

I QUIT SOCCER TO PLAY ATARI.

(LAUGHS)

MALE REPORTER: FROM THE MOMENT SHE WAKES UP,

VIOLET BOLTON CAN'T WAIT TO GET ON HER IPAD.

NARRATOR: WHETHER THEY ARE CHALLENGING,

INSPIRING,

COMFORTING,

OR ADDICTIVE,

THEY HAVE TAKEN OUR LIVES TO THE NEXT LEVEL.

BUT BACK IN 1962,

IT WAS A PRIVILEGE TO HAVE ACCESS

TO THE COMPUTER LABS AT THE UNIVERSITY OF UTAH

WHERE ASPIRING ENGINEERS WOULD GATHER IN THE MIDDLE OF THE NIGHT

TO PLAY A BRAND NEW THING THEY CALLED SPACEWAR.

[GUNS FIRING]

SPACEWAR MADE A HUGE IMPRESSION ON A YOUNG STUDENT NAMED NOLAN BUSHNELL.

MY FRIENDS SAID,

"COME OVER TO THE COMPUTER LAB, I GOT SOMETHING TO SHOW YOU."

AND SO I WENT OVER AT MIDNIGHT,

AND WE WENT IN AND PLAYED SPACEWAR.

AND I WAS ADDICTED.

NARRATOR: THE FUTURE FOUNDER OF ATARI,

BUSHNELL HAS BEEN CALLED THE FATHER OF THE MODERN VIDEO GAME.

BUT WHILE IN COLLEGE,

HE SPENT HIS SUMMERS WORKING AT AN AMUSEMENT PARK,

SERVICING PINBALL MACHINES AND OTHER ELECTRO-MECHANICAL GAMES.

NOLAN BUSHNELL: I THOUGHT AT THE TIME IF I COULD TAKE THIS GAME

AND PUT IT IN MY ARCADES,

WE CAN MAKE A LOT OF MONEY.

NARRATOR: HE HAD A VISION. COMPUTER SPACE.

SIMPLY PUT, IT WAS A WAY TO GET A SPACEWAR- LIKE GAME

INTO AN ARCADE CABINET

AND IT WOULD LIVE RIGHT ALONGSIDE THE PINBALL MACHINES.

THEY USED SUCH AN ODD-LOOKING CABINET

THAT IT WOUND UP SERVING AS A PROP IN SCIENCE FICTION MOVIES.

HERE, YOU'D BETTER SIGN FOR IT.

MY USUAL CUT?

YOU'LL GET YOUR CUT.

JUST SO WE UNDERSTAND.

IT LOOKED TOTALLY SIXTIES WITH THAT KIND OF MOLDED PLASTIC

OR POLYSTYRENE, WHATEVER THE HELL IT WAS.

ONE DAY THIS BULBOUS, SPACE-LIKE THING SHOWED UP

AND I JUST COULDN'T BELIEVE HOW MUCH FUN IT WAS

AND I WONDERED WHY THEY DIDN'T ALLOW MORE OF THESE THINGS OUT THERE.

NARRATOR: COMPUTER SPACE WAS TOO MUCH TOO SOON.

THE CONTROLS WERE TOO COMPLICATED.

PEOPLE JUST DIDN'T KNOW HOW TO PLAY.

I THINK THAT WHAT I DIDN'T REALIZE

IS THAT YOU DIDN'T HAVE TO BE COMPLEX TO BE FUN.

KEEP IT SIMPLE.

NARRATOR: SO NEXT TIME, HE KEPT IT SIMPLE,

AND HE GOT IT RIGHT. PONG.

WITHOUT A SINGLE BUTTON TO PUSH, PONG WAS NOT JUST EASY TO PLAY,

BUT IT HAD A CLEAR GOAL.

BOUNCE THE LITTLE SQUARE BALL AT YOUR OPPONENT,

AND YOUR OPPONENT BOUNCES IT BACK.

THE YEAR WAS 1972.

BUSHNELL AND HIS PARTNERS, TED DABNEY AND AL ALCORN,

SET UP THE FIRST PONG MACHINE AT A BAR

IN CALIFORNIA'S SILICON VALLEY.

THE NEXT MORNING, THEY RECEIVED THEIR FIRST COMPLAINT CALL.

THE PONG MACHINE HAD BROKEN.

BUT PONG DIDN'T BREAK BECAUSE THEY DIDN'T BUILD IT RIGHT,

IT BROKE BECAUSE PEOPLE HAVE FORCED SO MANY QUARTERS INTO IT,

IT JUST JAMMED UP.

THE FIRST GLITCH IN VIDEO GAME HISTORY WAS A COIN BOX THAT WAS TOO SMALL.

NOBODY MADE THAT MISTAKE AGAIN.

AND WE THOUGHT, "WELL, THIS IS A GOOD SIGN."

NARRATOR: WITHIN 12 MONTHS,

A FEW GUYS TAKING OUT LOANS TO MAKE ELECTRONIC TOYS

BECAME ONE OF THE RICHEST COMPANIES IN THE WORLD.

BUT THE COMPETITION DID NOT TAKE LONG TO CATCH UP.

THAT SAME YEAR, AMERICAN ENGINEER AND INVENTOR, RALPH BAER,

INTRODUCED THE FIRST HOME VIDEO GAME CONSOLE,

THE ODYSSEY.

DAVID CRANE: IT WAS VERY, VERY SIMPLE.

YOU ACTUALLY HAD TO GO TO THE PACKAGE AND PULL OUT PLASTIC OVERLAY

AND RUB IT ON TO THE TV SET

AND HOPE IT WOULD STAY THERE WITH STATIC ELECTRICITY,

AND IF NOT, YOU HAD TO TAPE IT ON WITH SCOTCH TAPE.

MAN ON TV: THIS IS ODYSSEY, THE NEW ELECTRONIC GAME SIMULATOR.

YOU ATTACH ODYSSEY TO YOUR TELEVISION SET IN SECONDS

TO CREATE A CLOSED CIRCUIT ELECTRONIC PLAYGROUND.

ODYSSEY IS TENNIS, ROULETTE,

FOOTBALL AND HOCKEY.

ODYSSEY COMES COMPLETE WITH FUN ELECTRONIC GAMES

AND EDUCATIONAL EXPERIENCES.

NARRATOR: RALPH BAER WAS A MAN AHEAD OF HIS TIME

AND WAY AHEAD OF HIS MANUFACTURING COMPANY, MAGNAVOX,

WHO HAD NO IDEA HOW TO MARKET THE ODYSSEY.

THE ADS MADE CONSUMERS THINK

THAT YOU NEEDED A MAGNAVOX TELEVISION TO RUN THE DEVICE,

WHICH, OF COURSE, HINDERED SALES.

HOME VIDEO GAMES DIDN'T REALLY CATCH ON

UNTIL NOLAN BUSHNELL DECIDED TO CAPITALIZE ON THE SUCCESS

OF THE PONG ARCADE GAME,

BY RELEASING A HOME VERSION IN 1975.

BUSHNELL: MY VICE PRESIDENT CALLED UP SEARS,

AND WE THOUGHT, "PONG HAD BEEN IN BARS,

"PINBALLS, MAYBE THAT WILL WORK."

SO WE CALLED UP THE BUYER AT SEARS, DESCRIBED WHAT WE HAD,

AND, LITERALLY, HE WAS AT OUR FRONT DOOR THE NEXT MORNING,

TAKING THE MIDNIGHT FLYER.

WE WENT IN AND HE PLAYED THE GAME AND HE SAID, "HOW MANY CAN YOU BUILD?"

WELL, WE HAD NO CLUE.

WE SAID, "MAYBE 25,000 BETWEEN NOW AND CHRISTMAS."

I WENT BACK IN AND I SAID, "75,000."

THE NEXT DAY HE GAVE US A PURCHASE ORDER FOR 150,000.

WE WERE OFF TO THE RACES.

[LAUGHS]

WE PLAYED THAT THING TO DEATH.

JUST HOOKED UP TO THE TV WITH THE LITTLE SIMPLE BACK AND WHITE,

AND THE LITTLE...

[IMITATES BLEEPING]

SO, IT WAS A VERY, VERY EXCITING MOMENT.

THAT WAS A GREAT CHRISTMAS.

[BLEEPING]

NARRATOR: MAGNAVOX AND BAER SUED ATARI FOR STEALING THEIR IDEAS.

IT WAS JUST THE FIRST OF THOUSANDS OF VIDEO GAME RELATED LAWSUITS.

BUT ATARI WON,

ENCOURAGING RIVAL MANUFACTURERS TO SURGE INTO THE MARKET

WITH THEIR OWN CLONES OF PONG.

MAN ON TV: YOU'RE WATCHING THE MOST EXCITING GAME YOU'LL EVER SEE ON YOUR TV SET...

BUSHNELL: IT WAS A SIMPLE GAME.

IT WAS ALSO A PRETTY SIMPLE GAME TO CLONE.

WE WERE MANUFACTURING IN A GARAGE SHOP.

THAT'S ALL WE HAD, SO THAT WAS A GOOD THING.

THE BAD THING IS THAT ANYBODY ELSE WHO HAD A GARAGE SHOP

COULD KNOCK IT OFF AND BUILD IT, TOO.

WITHIN SIX MONTHS WE HAD MAYBE 20 COMPETITORS.

IT WAS A LITTLE BIT FRUSTRATING.

LET'S SEE YOUR BEST PITCH.

NARRATOR: TO KEEP AHEAD OF THE GAME, ATARI DECIDED TO RELEASE THE VCS,

ONE OF THE BEST-SELLING HOME CONSOLES OF ALL TIME.

YOU NEED MORE PRACTICE DAILY!

NARRATOR: DESPITE THE FAME AND FORTUNE THAT LAY IN ITS FUTURE,

THE VCS WAS A COMMERCIAL FAILURE WHEN IT FIRST LAUNCHED IN 1977.

YOU'RE OUT!

* ATARI*

NARRATOR: THE VIDEO GAMING PUBLIC

WAS MORE INTERESTED IN THE POWERFUL PROCESSORS

AND SUPERIOR GRAPHICS FOUND AT THE ARCADE,

SUCH AS 1978'S SPACE INVADERS.

SPACE INVADERS WASN'T AN ATARI PRODUCT.

IT WASN'T EVEN AN AMERICAN PRODUCT.

THE GAME IMMEDIATELY ESTABLISHED THE JAPANESE

AS A MAJOR PLAYER IN THE WORLD OF VIDEO GAMES.

IN FACT, IT WAS SO POPULAR, IT CAUSED A NATIONAL COIN SHORTAGE IN JAPAN.

IN AMERICA, IT FIT PERFECTLY WITH AN ERA THAT WAS OBSESSED

WITH SCIENCE AND TECHNOLOGY.

MAN: THESE ARE THE VOYAGES OF THE STARSHIP ENTERPRISE...

NARRATOR: STAR TREK.

AND STAR WARS.

I ACTUALLY THINK THE PRIMAL BEAT...

[VOCALIZING]

THAT, "HERE ARE ALIENS THAT ARE GONNA KILL YOU,"

THERE WAS AN ADRENALINE RUSH

FOR FIGHTING THESE ALIENS, AS SIMPLE AS IT IS TO LOOK AT NOW.

BUT THE GAME IS VERY EASY TO UNDERSTAND.

IT WAS GREAT, VERY SIMPLE. IT WAS BETTER THAN PONG.

THIS IS COOL.

THEN THERE WAS SOME STRATEGY TO IT.

YOU'RE GONNA STAY BEHIND THE BARRIERS OR YOU GONNA SHOOT THE ALIENS?

THAT KIND OF HAVING FUN, SHOOTING THINGS IN A GAME.

FOR WHAT IT WAS,

IT BECAME A VERY, VERY DIFFERENT KIND OF SHOOTING GALLERY.

LIKE YOU HAD NEVER SEEN BEFORE.

[BEEPING]

[EXPLOSION]

NARRATOR: SPACE INVADERS ALSO HAD A DARKER SIDE.

THE FEAR OF THE UNKNOWN, THE ALIEN.

THE MINDLESS ENEMY THAT DESCENDS ON THE PLANET WITH MILITARY PRECISION.

AND NO MATTER HOW LONG YOU CAN HOLD OUT,

EVENTUALLY, THEY'RE GOING TO KILL YOU.

PERHAPS THE GAME RESONATED WITH THE CHILDREN

OF THOSE WHO SURVIVED HIROSHIMA AND NAGASAKI.

JAPANESE CHILDREN WHO GREW UP FEARING THE FOREIGN TERROR FROM THE SKIES.

NOW, THEY HAD A WAY TO FIGHT BACK.

OUR PLAN IS A COMPREHENSIVE ONE.

IT WOULD STRENGTHEN AND MODERNIZE

THE STRATEGIC TRIAD OF LAND-BASED MISSILES,

SEA-BASED MISSILES AND BOMBERS.

NARRATOR: ATARI FIGHTS BACK AND LAUNCHES MISSILE COMMAND...

[EXPLOSIONS]

AND ASTEROIDS.

DESPITE ADVANCEMENTS IN GRAPHICS AND GAME PLAY,

THE CORE REMAINED THE SAME.

SHOOT ANYTHING THAT COMES YOUR WAY.

IN RESPONSE TO THE VIOLENT GAMES OF THE LATE 1970S,

TORU IWATANI DESIGNED THE MOST POPULAR ARCADE GAME EVER INVENTED.

PAC-MAN.

[BEEPING]

FOR THE FIRST TIME, A VIDEO GAME WAS A BRAND.

PAC-MAN APPEARED IN EVERY CONCEIVABLE TYPE OF MERCHANDISE.

HE EVEN STARRED IN HIS OWN TELEVISION SHOW,

AND WAS THE SUBJECT OF A TOP 40 POP SONG.

* PAC-MAN FEVER I'M GOING OUT OF MY MIND *

NARRATOR: EVERYONE WAS STRUCK WITH PAC-MAN FEVER.

MAN ON TV: NEW PAC-MAN PASTA FROM CHEF BOYARDEE,

WITH MEAT BALLS, WITHOUT MEAT BALLS,

OR CHICKEN FLAVORED.

THANK GOODNESS FOR NEW PAC-MAN PASTA.

NARRATOR: PAC-MAN WAS THE OPPOSITE OF DOOM AND GLOOM.

HE JUST WANTED LUNCH.

PAC-MAN WAS CUTESY IN AN ALL-NEW WAY

THAT COULD APPEAL TO ANYBODY.

LITTLE BIT OF A STORY THERE

AND IT WAS A DIFFERENT KIND OF GAME PLAY

THAN YOU HAD SEEN UP TO THAT POINT,

AND SORT OF THE GAME THAT YOU COULD BE A MASTER OF

WITH THE PATTERN RECOGNITION AND WHERE ARE THE GHOSTS

AND HOW TO MAXIMIZE POINTS.

IT REALLY BECAME A MILD OBSESSION OF MINE AT THE TIME.

WHAT A CRAZY GAME IDEA!

TO ME THAT WAS LIKE EVERYTHING BEFORE THAT GAME,

THEY WERE ALL ABOUT JUST SHOOT THE ALIEN.

EVERYTHING WAS SHOOT THE ALIEN.

ASTEROIDS WAS SHOOT THE LITTLE ALIEN AND THE ASTEROIDS,

BUT EVERYTHING WAS JUST SHOOT, SHOOT, SHOOT.

SO WHEN PAC-MAN CAME OUT, IT HAD FUNNY KIND OF MUSIC IN IT,

IT HAD A MAIN CHARACTER THAT WAS JUST EATING DOTS.

IT HAD NOTHING TO DO WITH KILLING THINGS,

IN FACT YOU'RE RUNNING AWAY FROM THINGS,

SO IT WAS LIKE THE OPPOSITE.

TO ME IT JUST SHOWED WHAT THE FUTURE OF GAME DESIGN,

THE PROMISE OF GAME DESIGN COULD BE.

NARRATOR: AND ALONG CAME THE CLONES AND SPIN-OFFS.

HE WAS SUCH A HIT WITH THE LADIES THAT SOMEONE HAD THE BRILLIANT IDEA

TO STICK A BOW ON HIM AND CALL HIM MS. PAC-MAN.

* DON'T YOU KNOW

* I'M MORE THAN PAC-MAN WITH A BOW *

MAN ON TV: MS. PAC-MAN!

NARRATOR: NAMCO WASN'T AMUSED.

THEY SUED MIDWAY TO PROTECT THEIR VALUABLE PROPERTY.

BUT THE SUIT WAS SOON THROWN OUT.

THERE WAS FAR MORE MONEY TO BE MADE BY SIMPLY ADOPTING MS. PAC-MAN

AS THEIR OWN.

TO THIS DAY, PAC-MAN REMAINS ONE OF THE HIGHEST-GROSSING ARCADE GAMES

OF ALL TIME.

AND NOT FOR LACK OF COMPETITION.

BY THE EARLY EIGHTIES, THERE WERE ARCADES EVERYWHERE.

AND IT WASN'T JUST A KIDS' PHENOMENON.

WOMAN ON TV: VIDEO GAMES ARE THE LATEST CRAZE TO SWEEP THE COUNTRY,

BUT WILL THIS POPULARITY LAST IS THE QUESTION.

WELL, THE MAKERS OF VIDEO GAMES ARE GAMBLING THAT IT WILL.

MAN ON TV: WE HAVE FOOTBALL KNEE, TENNIS ELBOW, JOGGER'S ANKLE,

SO WHY NOT PAC-MAN'S WRIST?

THE CALLUSES AND BLISTERS ARE OBVIOUS,

THE SWELLING IS SECONDARY.

NARRATOR: CRITICS TRIED TO SPOIL PAC-MAN'S FUN.

WHAT ABOUT KIDS' VALUABLE HOMEWORK TIME?

WHERE WERE KIDS REALLY SPENDING THAT LUNCH MONEY?

ARCADE GAMES INVADED GROCERY STORES, DENTIST OFFICES, EVEN FUNERAL PARLORS.

FEMALE ANNOUNCER: THE NEW ATARI CARTRIDGE GAME IS IN!

EXCUSE ME!

NARRATOR: AND OF COURSE, LIVING ROOMS AROUND THE WORLD.

[SONG PLAYING IN FOREIGN LANGUAGE]

NOLAN BUSHNELL HAD A HEAD START WITH THE ATARI VCS ALREADY IN STORES.

HE WAS JUST WAITING FOR THE REST OF THE WORLD TO CATCH UP WITH HIM.

AND SOON ENOUGH, EVERYBODY WANTED ONE.

[MAN ON TV SPEAKING FRENCH]

[MAN ON TV SPEAKING ITALIAN]

NARRATOR: SALES SOARED.

PLUS, BUSHNELL HAD SOMETHING LOTS OF HIS COMPETITORS DID NOT.

MONEY.

IN ORDER TO MASS MANUFACTURE THE ATARI VCS,

BUSHNELL SOLD ATARI TO MEDIA GIANT, WARNER COMMUNICATIONS, IN 1977.

THE CUTTHROAT CORPORATE MINDSET TOOK OVER AT ATARI,

LEADING TO BUSHNELL HIMSELF BEING FORCED OUT OF THE VERY COMPANY

HE CREATED.

TO THIS DAY,

HE REGRETS THE SALE OF ATARI

AS THE WORST BUSINESS DECISION HE EVER MADE.

BUSHNELL: THEY THOUGHT THEY COULD JUST KEEP PRODUCING GAMES

AND THEY COULD TREAT THE ENGINEERS LIKE FACTORY WORKERS.

THEY DIDN'T REALLY MAKE THE CONNECTION THAT THEY WERE THE STARS.

WHAT SPECIFIC GAMES HAVE YOU DESIGNED?

WELL, AT ATARI WE DON'T REALLY LIKE TO TALK ABOUT WHO DESIGNED WHAT.

WHY NOT? WELL, BECAUSE

WE LIKE TO MAKE THE GAME A SUPERSTAR AS OPPOSED TO THE PROGRAMMER.

WHY SHOULDN'T YOU GET CREDIT IF YOU DESIGNED THE GAME?

WELL, BECAUSE IT IS A CORPORATE PRODUCT. OKAY?

THESE ARE GAMES BY ATARI, NOT GAMES BY STEVE WRIGHT OR SOME OTHER PERSON.

BOB CITELLI: AND THEY SAID, "WE WANNA BE TREATED LIKE ROCK STARS.

"WE WANNA GET ROYALTIES ON THE GAMES WE'VE PRODUCED,"

WHICH WAS UNHEARD OF.

AND ATARI SAID, "THAT'S VERY NICE, BUT THIS IS A TOY COMPANY,

"AND WE MAKE GAMES, AND YOU WORK FOR US,

"AND THIS IS THE ONLY SYSTEM THAT YOU HAVE THE ABILITY TO PROGRAM FOR,

"SO GO BACK TO YOUR CUBES AND MAKE MORE GAMES."

[KEYBOARDS CLACKING]

SO, NATURALLY, WE ADDED UP ALL THE GAMES

THAT WE HAD DONE IN THAT GROUP,

AND REALIZED THAT THE FOUR OF US OUT OF THE 30-PERSON DEPARTMENT,

WERE RESPONSIBLE FOR 60% OF THE SALES OF ATARI

FOR THAT PREVIOUS YEAR.

IT BECAME OBVIOUS TO THE MOST CASUAL OBSERVER,

BECAUSE YOU COULD SEE THAT YOU WERE BUILDING CARTRIDGES FOR THREE BUCKS

AND SELLING THEM FOR 20.

THAT SOMEBODY WAS MAKING A WHOLE BUNCH OF MONEY.

THERE WERE FOUR MILLION CARTRIDGES, EIGHT MILLION CARTRIDGES,

TEN MILLION CARTRIDGES SOLD!

THESE ARE ENGINEERS, THEY CAN DO MATH PRETTY WELL.

CRANE: THE SALES OF ATARI THE PREVIOUS YEAR WAS 100 MILLION DOLLARS.

AND SO, WE'RE LOOKING AT EACH OTHER AND SAY, "WE'RE MAKING 20,000 DOLLARS A YEAR,

"AND WE ARE GENERATING 60 MILLION DOLLARS OF REVENUES."

CITELLI: ATARI DIDN'T REALLY CONTROL ITS MARKETPLACE

THE WAY MANUFACTURERS DO TODAY WITH THEIR LICENSING PROGRAMS.

WELL, THEY WENT BACK TO THEIR CUBES AND LEFT

AND STARTED A COMPANY CALLED ACTIVISION.

[GAVEL POUNDING]

NARRATOR: ATARI TRIED ITS BEST TO STIFLE THE ONSLAUGHT OF COMPETITION,

BUT THE JUDGES RULED THAT YOU COULD PLUG WHATEVER YOU WANTED

INTO THAT CARTRIDGE SLOT.

ACTIVISION PREVAILED AND WENT FROM ZERO TO, I THINK,

60 OR 70 MILLION DOLLARS IN ABOUT 18 MONTHS.

THE GUYS THAT LEFT ATARI WERE THE KEY PROGRAMMERS.

IT WAS JUST NATURAL THAT THE BEST AND THE BRIGHTEST

WOULD MOVE ACROSS THE STREET TO ACTIVISION, AND THEN,

SHORTLY THEREAFTER, ANOTHER BUNCH OF THEM LEFT AND SO ATARI, SORT OF,

GOT LEFT WITH THE GUYS WHO COULDN'T MOVE.

[GROANS]

I FOUND THE WAY TO THE GOLD!

CITELLI: ATARI LOST CONTROL OF ITS MARKETPLACE,

DIDN'T HAVE THIS GATED GARDEN LIKE APPLE HAS WITH THE IPHONE,

AND THEN EVERYBODY SAW THE OPPORTUNITY AND PILED IN.

YOU'D SUCCEEDED BY DUMB LUCK HALF THE TIME...

AND THEN, IT WAS TOTAL CHAOS.

NARRATOR: THIS WAS NO CLEARER THAN IN ATARI'S 1982 VERSION

OF THE MUCH LOVED ARCADE GAME, PAC-MAN.

ATARI SPENT MILLIONS TO ACQUIRE THE LICENSE TO MAKE THE GAME.

IT BECAME THE ALL-TIME BESTSELLER FOR THE SYSTEM.

BUT THEIR RUSHED PRODUCTION ONLY MOCKED IWATANI'S MASTERPIECE.

[BEEPING]

LATER THAT SAME YEAR, STEVEN SPIELBERG'S E.T.

LANDED IN THEATERS.

WARNER EXECUTIVES SPENT A FORTUNE FOR THE RIGHTS TO MAKE THE GAME

AN ATARI EXCLUSIVE.

THEY PUSHED THE PRODUCTION TEAM TO FINISH THE GAME IN TIME FOR CHRISTMAS,

GIVING THEM JUST SIX WEEKS TO COMPLETE PRODUCTION.

I SAW THE GAME PLAN.

A VERY ROUGH SCHEME OF THE GAME,

AND I WAS AMAZED AT HOW DIFFICULT IT WAS,

AND AT THE SAME TIME, HOW MUCH FUN IT WAS TO PLAY.

NARRATOR: BUT WITH ALL THE HYPE ASIDE,

THE RESULT WAS A GAME EVEN MORE UNDERWHELMING THAN PAC-MAN.

A MILLION PEOPLE RUSHED OUT TO BUY IT.

AND ALMOST AS MANY RETURNED IT THE NEXT DAY.

PAC-MAN AND E.T. WERE INDEED GROUNDBREAKING,

BUT THE REAL GROUND BROKEN, WAS FOR A LANDFILL IN NEW MEXICO.

ATARI BURIED MILLIONS OF UNSOLD UNITS.

AND THESE GAMES WERE JUST THE HIGH PROFILE TIP

OF THE GARBAGE PILE.

STEVE CARTWRIGHT: WE USED TO GO TO CES IN CHICAGO EVERY YEAR,

BIG TRADE SHOW,

AND ONE YEAR WE WENT THERE

AND EVERYBODY AND HIS BROTHER WAS DOING VIDEO GAMES.

ALL OF A SUDDEN THERE WERE 30 VIDEO GAME COMPANIES,

WHERE THE PREVIOUS YEAR THERE WERE TWO.

AND IT GOT TO THE POINT WHERE EVEN QUAKER OATS HAD A VIDEO GAME BOOM.

AND WE LOOKED AT ALL THE GAMES BEING DONE BY THESE 30 COMPANIES,

WHO HAD NO EXPERIENCE DOING GAMES AND SOME OF THESE GAMES WERE HORRIBLE.

ALL THESE COMPANIES ARE GONNA BE OUT OF BUSINESS IN A FEW MONTHS.

WHICH WAS TRUE.

BUT WHAT HAPPENS WHEN YOU HAVE 30 COMPANIES GOING OUT OF BUSINESS

AND THEY ALL HAVE A MILLION CARTRIDGES IN THEIR INVENTORY?

THEY DUMP THEM ON THE MARKET.

THERE MAY BE TROUBLE IN TOY LAND, AT LEAST IN THE VIDEO GAMES DIVISION.

THIS WEEK INDUSTRY GIANT, WARNER COMMUNICATIONS,

MAKERS OF ATARI,

ANNOUNCED THAT 1982 EARNINGS WOULD BE FAR BELOW PREVIOUS EXPECTATIONS.

NARRATOR: BY 1983,

IT SEEMED AS THOUGH THE PUBLIC'S LOVE AFFAIR WITH ARCADE GAMES

WAS COMING TO AN END.

IN A 12-MONTH PERIOD THERE WAS ALMOST A 90% DECREASE

IN THE REVENUES AT ARCADES.

NARRATOR: THE MANUFACTURERS DIDN'T KNOW WHAT TO DO WITH ALL THOSE CARTRIDGES.

CRANE: AN ENTERPRISING LIQUIDATOR WENT AROUND TO THESE COMPANIES AND SAID,

"YOU'VE GOT ALL THOSE CARTRIDGES IN THE WAREHOUSE,

"AND YOU PAID 20, 30 DOLLARS TO HAVE THEM BUILT.

"I'LL GIVE YOU 3 DOLLARS EACH."

AND THE BANKRUPTCY JUDGE SAYS, "THEY'RE WORTH NOTHING TO ME OTHERWISE,

"IN FACT I HAVE TO PAY TO GET RID OF THEM."

SO HE TOOK THEM FOR 3 DOLLARS EACH, AND HE GOES TO THE RETAILERS,

AND SAID, "I'M GONNA SELL THEM TO YOU FOR 4 DOLLARS,

"AND YOU CAN RETAIL THEM FOR 5 DOLLARS."

AND THE GUY SAYS, "THAT'S A PRETTY GOOD MARGIN."

AND IT'S NOT TOO BAD, REALLY, WHEN IT COMES RIGHT DOWN TO IT.

SO, FOR ONE CHRISTMAS, THE CRASH CHRISTMAS,

THERE WERE 20 MILLION PIECES OF SOFTWARE FOR SALE AT 5 DOLLARS APIECE,

IN BARRELS

JUST INSIDE THE DOOR OF TOYS "R" US.

SO, EVEN THOUGH A KID ASKS FOR THE LATEST, HOTTEST,

40 DOLLARS ACTIVISION TITLE FOR CHRISTMAS.

DAD TAKES HIS 40 DOLLARS INTO THE STORE,

AND HE SAYS, "I CAN BUY EIGHT GAMES FOR MY 40 DOLLARS.

[CAMPTOWN RACES PLAYING]

"I'M GONNA BE THE HERO."

AND HE BUYS EIGHT 5 DOLLAR GAMES, AND IN ONE CHRISTMAS

THE SALE OF BRAND-NEW FRONT-LINE TITLES WENT TO ZERO.

DON DAGLOW: ONE OF THE THINGS THAT WE TAKE FOR GRANTED NOW

IS THAT VIDEO GAMES ARE PART OF OUR LIVES.

THEY ARE PART OF OUR CULTURE.

THEY ARE PART OF WHAT WE THINK OF AS MEDIA.

IN ABOUT 1983, '84,

VIDEO GAMES WERE BEING DISMISSED AS BEING LIKE THE HULA HOOP

OR CABBAGE PATCH DOLLS

OR THE HUSTLE.

TOY STORES WENT FROM FEATURING VIDEO GAMES

AS ONE OF THEIR BIGGEST PROFIT CENTERS

TO SAYING, "THIS IS OVER, WHAT'S NEXT?"

WE SIMPLY REACHED THAT POINT WHERE THE INITIAL FLUSH OF ROMANCE

WAS LOST,

AND NOBODY REALIZED THAT THIS WAS A LONG-TERM RELATIONSHIP.

NARRATOR: IN HINDSIGHT, IT'S EASY TO SEE HOW ATARI BROUGHT COMPUTERS

INTO OUR EVERYDAY LIVES

AND HOW BUSHNELL'S EFFORTS FORGED A LONG-TERM RELATIONSHIP

BETWEEN PEOPLE AND THEIR MACHINES.

WE SAW THE PERSONAL COMPUTER THROUGH THE GAME BUSINESS EYES.

AND WE SAW IT BEING A SUPER GAME PLAYER

AND YEAH, IF YOU WANNA DO WORD PROCESSING,

SOME OF THAT OTHER STUFF, YEAH, THAT'D BE OKAY AS WELL.

I'M GOING TO COME TO YOU MOSTLY THROUGH THIS MEDIUM HERE.

NARRATOR: BUT BACK IN 1968, ALMOST 10 YEARS BEFORE THE ATARI VCS, DOUG ENGELBART

DEMONSTRATED A PROTOTYPICAL MODERN DAY COMPUTER ENVIRONMENT.

IT HAD FAMILIAR FEATURES, SUCH AS EMAIL,

HYPERLINKS AND EVEN VIDEO CONFERENCING.

ALL OF IT WAS DRIVEN BY AN AMAZINGLY SIMPLE DEVICE,

KNOWN AS THE MOUSE.

ROB SMITH: THE CONCEPT OF A DESKTOP COMPUTER REALLY DIDN'T EXIST.

THE EARLY COMPUTERS YOU COULD'VE BOUGHT IN PIECES.

THE FACT THAT YOU COULD GET THIS BOX TO TURN THE LIGHT ON,

WAS, "HEY, THIS IS NEW, WE'VE NEVER TURN A LIGHT ON

"USING THIS ELECTRONICS BEFORE."

IT IS THAT KIND OF EXCITEMENT OF UNCOVERING

WHEN YOU PUT THESE PIECES TOGETHER,

WHEN YOU PUT THESE ELECTRONICS TOGETHER,

WHAT CAN YOU ACTUALLY MAKE THEM DO?

NARRATOR: IN THE 1970S, HOME COMPUTERS WERE NOTHING MORE THAN AN OBSCURE HOBBY.

THESE DO-IT-YOURSELF COMPUTER MARVELS HAD NO REAL OPERATING SYSTEMS,

REQUIRING PROGRAMS TO COMMUNICATE VIA MACHINE LANGUAGE.

THIS MADE THEM ALMOST UNUSABLE TO THE GENERAL PUBLIC.

IT WASN'T UNTIL 1977

THAT HOME COMPUTERS FINALLY BECAME EASIER TO OPERATE.

A NEW TERM WAS INTRODUCED INTO OUR LEXICON.

USER FRIENDLY.

BUSHNELL: THE TWO STEVES, WOZNIAK AND JOBS,

WHAT A LOT OF PEOPLE DON'T REALIZE IS THAT STEVE JOBS WORKED FOR ATARI

AND ACTUALLY DID BREAKOUT.

AND DID A GREAT JOB ON IT.

AND WHEN THEY DECIDED TO DO THE APPLE COMPUTER,

THEY CAME AND ASKED IF WE WANTED TO PRODUCE IT.

WE DIDN'T FEEL LIKE WE COULD USE OUR CAPITAL AT THAT POINT IN TIME

BECAUSE WE HAD ALL THE BUSINESS THAT WE COULD USE

AND AT THE SAME TIME THEY OFFERED ME A THIRD OF APPLE COMPUTER FOR 50,000 DOLLARS

WHICH IN MY BRILLIANCE I TURNED DOWN.

AUTOMATED VOICE: INTRODUCING APPLE II, THE EASY TO OPERATE HOME COMPUTER.

BUSHNELL: KIND OF REGRET THAT ONE.

AUTOMATED VOICE: JUST HOOK IT UP TO YOUR TV TO CREATE DAZZLING COLOR DISPLAYS.

OR YOU CAN BALANCE YOUR CHECKBOOK.

OR THE FAMILY CAN INVENT THEIR OWN PONG GAMES.

THE POSSIBILITIES ARE ENDLESS.

DAGLOW: I STILL REMEMBER THE SHOCK OF THAT MOMENT,

THE TIME WHEN I FIRST SAW AN APPLE II,

WHICH IS THIS LITTLE FLAT LOW-LYING MACHINE

WITH A KEYBOARD BUILD IN,

AND VERY SIMPLE MONITOR WITH IT.

I REALIZED THIS THING HAS MORE POWER IN IT

THAN THE ROOM SIZE COMPUTER THAT I'VE BEEN WRITING GAMES ON

AT THAT POINT FOR PROBABLY SEVEN YEARS.

KEPT LOOKING AT IT AND SAYING, "HOW DID THEY GET

"AN ENTIRE ROOM WORTH OF HARDWARE INTO THIS LITTLE THING?"

JOHN ROMERO: YOU WALK INTO THE STORE, AND IT SMELLS ALL CLEAN, PLASTIC-Y,

AND THERE ARE THREE APPLE IIS THERE WITH COLOR MONITORS,

AND JUST BAGGIES HANGING ON THE WALLS.

JUST THESE BLACK BAGS WITH ALL THIS GAMES.

THEY DIDN'T TAKE UP MUCH SPACE 'CAUSE THEY WERE JUST HANGING OFF THE WALLS.

NARRATOR: BUT THE GAMES WERE COMPATIBLE ONLY WITH A SPECIFIC COMPUTER MODEL

THEY WERE CREATED FOR.

CONFUSION, FRUSTRATION AND BRAND LOYALTY FOLLOWED.

NOBODY COMPARES TO THE ATARI.

I'M FINDING TELEVISION MORE SOPHISTICATED AND LIFELIKE.

GENTLEMEN, MOVE OVER...

NARRATOR: USERS WOULD SWEAR THAT THEIR BRAND WAS THE BEST ONE.

THIS IS THE ONE...

THERE WAS SO MUCH DIVERSITY IN TERMS OF PLATFORMS

THAT RETAILERS COULDN'T DECIDE WHICH PC OR CONSOLE TO SUPPORT.

THE PUBLISHING COMMUNITY COULDN'T DETERMINE

WHICH SYSTEM YOU WERE GONNA PROGRAM FOR,

BECAUSE THERE WERE SMALL COMPANIES, THERE WERE 20, 30 EMPLOYEES.

IT WAS NOT THE MASSIVE STUDIOS THAT THEY HAVE TODAY,

PRODUCING MULTI-MILLION DOLLAR PRODUCTIONS.

THIS IS A HANDFUL OF HOBBYISTS, REALLY.

AND SO, YOU ALWAYS HAD TO GUESS.

NARRATOR: HOME COMPUTERS UTILIZED FLOPPY DISKS OR CASSETTE TAPES

INSTEAD OF THE FAST-LOADING CARTRIDGES USED FOR GAMING CONSOLES.

THAT MEANT IT WAS CHEAPER TO BUY SOFTWARE,

BUT THE SOFTWARE RAN MUCH SLOWER.

YOU WOULD WAIT 20 MINUTES FOR THE GAME TO LOAD,

AND THEN YOU MAKE A LEFT TURN INSTEAD OF A RIGHT,

AND BOOM, YOU WERE DEAD, SO NOW, YOU HAD TO RELOAD THE GAME AGAIN

'CAUSE IT DIDN'T STAY IN MEMORY.

NARRATOR: DESPITE ALL THE WAITING AROUND,

FLOPPY DISKS AND CASSETTE TAPES ACTUALLY CONTRIBUTED GREATLY

TO THE DEVELOPMENT OF HOME COMPUTERS AS GAMING DEVICES.

UNLIKE CARTRIDGES, THE DISKS AND TAPES COULD BE EASILY COPIED,

AND FREELY TRADED AS HOME BREWED GAMES

AMONG NETWORKS OF DEVOTED VIDEO GAMERS.

A NEW CHAPTER OF THE GAMING CULTURE WAS UNFOLDING.

WHAT WAS KNOWN AS LEVEL EDITING BECAME A POPULAR HOBBY.

INFLUENTIAL GAMES STARTED BEING DEVELOPED BY LONE DESIGNERS

IN THEIR BEDROOMS.

THE BASEMENT CODERS.

I COME HOME FROM SCHOOL, COMPUTER STRAIGHT ON.

AND I TOLD MY PARENTS THAT THIS WAS FOR SCHOOL.

NO, IT WAS TO FIGURE OUT HOW TO MAKE GAMES.

IT WAS A TOTAL LIE, JUST LIKE MOST PEOPLE AT THE TIME.

I START TYPING THESE PAGES AND PAGES OF CODES FROM MAGAZINES IN,

TO JUST SEE WHAT HAPPENS.

UNDERSTANDING WHY ONE THING THAT YOU'VE GOT

IN THIS AREA OF THE CODE, MAKES THIS HAPPEN ON SCREEN.

IT GAVE PEOPLE VERY SIMPLE TOOLS TO CREATE THEIR OWN WORLD.

PEOPLE FLOCKED TO THAT.

IT WAS A POWERFUL MECHANIC.

NARRATOR: A NEW MINDSET WAS TAKING SHAPE.

USER-GENERATED CONTENT.

SOME OF THE MOST POPULAR GAMES IN EARLY PCS HAD NO GRAPHICS AT ALL.

TEXT-BASED ADVENTURE GAMES, LIKE 1977'S ZORK,

WERE PLAYED BY TYPING IN COMMANDS FROM A KEYBOARD.

BUT THE LACK OF GRAPHICS WAS MADE UP FOR WITH CHALLENGING PUZZLES,

AND IMMERSIVE STORIES.

ZORK I IS TEXT ON SCREEN.

YOU TYPE IN A SENTENCE.

YOU COULD ACTUALLY TYPE IN A WHOLE SENTENCE.

BUT IT WAS REALLY JUST PARSING FOR THE VERB AND THE NOUN.

ONCE IT FOUND THEM, IT WOULD FIGURE OUT WHAT YOU WERE TRYING TO DO

AND IT WOULD GO TO A DATABASE AND SEE WHETHER YOU COULD ACCOMPLISH IT.

YOU WOULD TRY TO FIND A WAY TO ADVANCE THROUGH THE STORY

AND ADVANCE THROUGH THE ROOMS BY SOLVING THESE PUZZLES.

STEVE MERETZKY: REALLY APPEALED TO THE DEMOGRAPHIC

OF WHO WERE BUYING AND OWNING COMPUTERS AT THAT TIME.

THEY WERE THE CUTTING EDGE THING

THAT YOU COULD DO WITH A PERSONAL COMPUTER.

NARRATOR: PUBLISHERS HAD GREAT SUCCESS WITH TEXT ADVENTURES.

THESE ARE NOW KNOWN AS ROLE-PLAYING GAMES,

RPGS.

INSPIRED BY THE CLASSIC GAME, DUNGEONS & DRAGONS.

DAN MURRAY: IN DUNGEONS & DRAGONS,

YOU'D BASICALLY HAVE A DUNGEON MASTER TELLING YOU A STORY.

AND THEN AS A PLAYER, YOU WOULD JUST IMAGINE

WHAT YOUR NEXT EVENTS WOULD BE.

THEN JUST THE ROLL OF THE DICE WOULD DETERMINE THE END RESULTS.

OUT OF THAT CAME THE IDEA TO TRANSLATE THAT INTO TEXT

ON COMPUTERS, AND PEOPLE EMBRACED THOSE.

NARRATOR: TEENAGE HOBBYIST GAME DEVELOPER, RICHARD GARRIOT,

BROUGHT ROLE-PLAYING TO THE DESKTOP.

IN 1981, HIS INFLUENTIAL GAME FRANCHISE,

ULTIMA, WAS BORN.

ULTIMA INTRODUCED GAME PLAY MECHANICS

STILL ENJOYED TODAY BY TENS OF MILLIONS OF GAMERS.

THESE RPGS WERE NOT CASUAL LIKE PONG OR SPACE INVADERS.

IT TOOK DAYS OR EVEN WEEKS OF PLAY TO TRAVEL FROM DUNGEON TO DUNGEON,

CLAIMING TREASURE, BUYING NEW WEAPONS,

BUILDING YOUR CHARACTER INTO A MIGHTY WARRIOR.

DERRIK LANG: ADVENTURE GAMES ARE PROBABLY THE ULTIMATE ARCHETYPE FOR VIDEO GAMES.

WE COULD SAY THAT ALL KIND OF GAMES ARE ADVENTURE GAMES

TO A CERTAIN EXTENT.

BUT, YEAH, ADVENTURE GAMES, I THINK, IS THE HEART OF THIS MEDIUM.

MURRAY: WHEN YOU SAY AN ADVENTURE GAME, IT'S SORT OF JUST ONE MECHANIC

WHICH IS NAVIGATING YOUR WAY THROUGH AN ENVIRONMENT,

POINT AND CLICK.

[UPBEAT MUSIC PLAYING]

IT'S VERY STORY DRIVEN.

NARRATOR: VIDEO GAMES SLOWLY STARTED PRESENTING MORE ELABORATE GAME WORLDS

FOR GAMERS TO EXPLORE.

[MUSIC PLAYING]

THE FOCUS WAS NOT ON THE SPEED OF THE PLAYER,

BUT ON IMMERSING THEM IN AN ALTERNATE VERSION OF REALITY.

[KEYBOARD CLACKING]

ADVENTURE GAMES LEFT ANOTHER HUGE MARK

ON THE DEVELOPMENT OF COMPUTER TECHNOLOGY.

GAMES LIKE ZORK WERE THE FIRST GAMES

THAT COULD BE PLAYED ON MULTIPLE PLATFORMS.

THE SIMPLE CONCEPT OF SEPARATING SOFTWARE FROM HARDWARE

WAS VERY INFLUENTIAL IN THE DEVELOPMENT OF PERSONAL COMPUTERS.

ONCE THERE WAS A UNIFIED OPERATING SYSTEM, PC SALES EXPLODED.

MORE UNITS WERE SOLD IN 1981 THAN IN THE PREVIOUS FIVE YEARS COMBINED.

WE SHALL PREVAIL.

NARRATOR: THAT NUMBER ALMOST DOUBLED IN 1982.

IN THE NEXT 30 YEARS,

HUNDREDS OF NEW HARDWARE AND SOFTWARE COMPANIES EMERGED.

MAN: BUT YOUTUBE HAS FAST BECOME MUST SEE...

THEY WENT FROM OBSCURITY TO FAME OVER A VERY SHORT PERIOD OF TIME.

VERY SIMILAR TO HOW GOOGLE ROSE.

NARRATOR: THE COMPUTING INDUSTRY THAT FIRST CAME INTO OUR HOMES WITH THE ATARI,

HAD SLOWLY GROWN TO BECOME A NECESSITY.

THAT'S WHAT IT LOOKS LIKE.

THIS IS GONNA BE SO COOL.

WHAT DOES THE REST OF MY DAY LOOK LIKE?

NARRATOR: THE RELATIONSHIP BETWEEN MAN AND SOFTWARE

HAD NOW EVOLVED FROM USER-FRIENDLY

TO LIFESTYLE.

BUT BACK IN 1985, IT'S NOT FAIR TO SAY THAT HOME COMPUTERS SIMPLY PICKED UP

WHERE VIDEO GAME CONSOLES HAD LEFT OFF.

INVESTORS AND RETAILERS HAD LOST TENS OF MILLIONS OF DOLLARS

DURING THE VIDEO GAME CRASH

AND NO ONE WOULD INVEST AS MUCH AS A QUARTER IN THAT SORT OF BUSINESS.

BUT THERE WAS MARIO.

IN JAPAN, HOME CONSOLES WERE STILL SELLING STRONG,

PARTICULARLY ONES MADE BY A PLAYING CARD COMPANY NAMED NINTENDO.

NO STRANGER TO GAMERS, NINTENDO HAD SCORED IN 1981

WITH SHIGERU MIYAMOTO'S ARCADE CLASSIC, DONKEY KONG.

BECAUSE OF THE RESTRICTIONS OF TECHNOLOGY

MIYAMOTO NEEDED TO GET CREATIVE WITH MARIO'S DESIGN.

AS THERE WERE NOT ENOUGH BYTES AVAILABLE

TO CREATE A PASSABLE HEAD OF HAIR,

HE GAVE HIM A HAT.

SAME WITH THE MUSTACHE.

WITHOUT THE FACIAL HAIR,

THE MARIO SPRITE WOULD'VE LOOKED WEIRD.

MAN: WHEN YOU WANNA ATTACH YOUR NAME TO A WORLD RECORD,

WHEN YOU WANT YOUR NAME WRITTEN INTO HISTORY,

YOU HAVE TO PAY THE PRICE.

NARRATOR: DONKEY KONG'S GAME PLAY WAS DESIGNED WITH SUCH PERFECTION

THAT EVEN FILMS HAVE BEEN MADE TO CELEBRATE ITS BEAUTY.

[THRILLING MUSIC PLAYING]

NOW, NINTENDO TOOK ON THE CHALLENGE OF EXPORTING ITS POPULAR CONSOLE

TO AMERICA.

AMERICAN RETAILERS STILL REELING FROM THE CRASH CHRISTMAS OF 1983

WANTED NOTHING TO DO WITH ANOTHER VIDEO GAME CONSOLE.

BUT NINTENDO MANAGED TO INFILTRATE AMERICA

WITH THE HELP OF ROB,

THE ROBOTIC OPERATING BUDDY.

ROB WOULD ACTUALLY PLAY YOUR VIDEO GAMES WITH YOU.

NINTENDO HAD TRICKED RETAILERS INTO THINKING

THAT THEY WERE NOT THE BEARERS OF ANOTHER GAMING CONSOLE,

BUT A FANCY ELECTRONIC TOY MANUFACTURER.

NINTENDO'S REAL SECRET WEAPON TURNED OUT TO BE SUPER MARIO BROTHERS.

[BEEPING]

A SPECTACULAR GAME THAT EVENTUALLY CAME BUNDLED WITH THE SYSTEM.

OUR DONKEY KONG HERO WAS BACK

BUT WITH MUCH, MUCH MORE POWER.

SUPER MARIO BROTHERS DID FOR CONSOLE GAMING

WHAT PAC-MAN HAD DONE FOR THE ARCADES.

IT GAVE GAMERS, AND MORE IMPORTANTLY, RETAILERS,

A REASON TO GET EXCITED ABOUT VIDEO GAMES

ALL OVER AGAIN.

NINTENDO FIGURED OUT FROM THE ASHES OF WHAT WENT ON PREVIOUSLY,

YOU NEED TO CONTROL ALL THIS BUSINESS AND YOU NEED TO EXTRACT ROYALTIES

FOR PEOPLE TO PLAY ON YOUR SYSTEM

AS OPPOSED TO JUST HAVING THIS FREE RANGE

WHERE EVERYBODY CAN COME IN AND DROP A GAME INTO THE MARKETPLACE.

NARRATOR: WHEN PEOPLE BOUGHT A NINTENDO GAME,

THEY KNEW IT WOULD HAVE SOME LEVEL OF QUALITY CONTROL.

NINTENDO MADE SURE TO PRODUCE ALL THE ACTUAL CARTRIDGES ITSELF,

INCORPORATING A SPECIAL AUTHENTICATION CHIP

IN EVERY CONSOLE AND CARTRIDGE TO PREVENT PIRACY.

WITH POPULAR FRANCHISES, CLEVER MARKETING,

AND A TIGHT CONTROL POLICY,

NINTENDO WROTE MANY OF THE MUCH NEEDED RULES

FOR THE REST OF THE VIDEO GAME INDUSTRY TO FOLLOW.

FRESH COMPETITION LIKE SEGA, AND OLD-TIMERS LIKE ATARI,

TRIED HARD,

BUT NO ONE COULD LOOSEN NINTENDO'S GRIP ON THE INDUSTRY.

[CROWD CHANTING] MARIO! MARIO!

NARRATOR: NINTENDO WAS HUGE,

MAKING MORE MONEY THAN ALL THE PREVIOUS GAMING SYSTEMS COMBINED.

AND TO STAY HUGE,

THEY THOUGHT SMALL,

INTRODUCING THE NINTENDO GAME BOY

IN 1989.

MAN: YOU DON'T STOP PLAYING BECAUSE YOU GET OLD.

BUT YOU COULD GET OLD IF YOU STOP PLAYING.

NARRATOR: WITH ITS MONOCHROME GRAPHICS,

BLURRY SCREEN,

AND TINNY SOUND,

IT'S HARD TO SAY THAT THE GAME BOY WAS A TECHNOLOGICAL MARVEL.

IN FACT, THE COMPETITION, LIKE ATARI'S LYNX,

AND SEGA'S GAME GEAR, HAD FAR MORE POWER.

MUCH LIKE THE NES,

THE GAME BOY HAD A SECRET WEAPON, TOO.

TETRIS.

THE KILLER APP OF MOBILE GAMING.

IT WAS SOMETHING THE COMPETITION LACKED

AND OVER 30 MILLION GAMERS COULD NOT LIVE WITHOUT.

SANDE CHEN: YOU COULD SEE SECRETARIES PLAYING TETRIS.

THEY MIGHT NOT THINK YOU WERE SEEING THEM PLAY IT,

BUT YOU WALKED IN AND YOU LOOKED AT THEIR COMPUTER SCREEN

AND THEY WERE PLAYING IT.

NARRATOR: TETRIS DIDN'T COME FROM JAPAN OR AMERICA,

IT CAME FROM BEHIND THE IRON CURTAIN.

CREATED BY ALEXEY PAJITNOV, A RUSSIAN COMPUTER ENGINEER,

TETRIS WAS DEVELOPED WHILE HE WORKED FOR THE SOVIET GOVERNMENT.

THE GAME WAS LEAKED OUT OF RUSSIA,

AND NOBODY COULD KEEP TRACK OF WHO OWNED THE COPYRIGHTS.

AT A TIME WHICH WAS A LITTLE BIT WILD WEST

OF THE EARLY VIDEO GAME INDUSTRY,

WHO OWNED IT AND WHO HAD THE RIGHTS ON A PARTICULAR PLATFORM

ALL OF THOSE LAWS HADN'T BEEN DEFINED FOR THIS BUSINESS,

BECAUSE THIS BUSINESS WAS JUST STARTING.

NARRATOR: SEVERAL COMPANIES CLAIMED TO HAVE THE EXCLUSIVE RIGHTS

TO PRODUCE TETRIS,

PROMPTING ATARI AND NINTENDO INTO A WAR.

EVEN THOUGH ATARI'S VERSION WAS STOLEN FIRST,

NINTENDO'S LAWYERS SHUT IT DOWN.

THE BIG LOSER, HOWEVER, WAS PAJITNOV HIMSELF.

THE SOVIET GOVERNMENT OWNED THE RIGHTS TO HIS PROGRAM,

AND NEVER GAVE HIM A RUBLE.

BUT AT LEAST HE GOT TO BE THE FIRST PERSON IN HISTORY

TO PLAY TETRIS WHILE HE WAS SUPPOSED TO BE WORKING.

WITH VIDEO GAMES NOW EVERYWHERE,

ONE WOULD EXPECT TO SEE SOMETHING SPECIAL

IF THEY WANDERED INTO AN ARCADE.

IN 1983, WHEN THE HOME CONSOLE MARKET WAS FALLING TO PIECES,

A NEW ARCADE GAME WAS LAUNCHED, WITH A VISUAL ACHIEVEMENT

THAT FAR SURPASSED THE SPRITE-BASED GRAPHICS

OF EVERY OTHER GAME ON THE MARKET.

DRAGON'S LAIR.

LANG: I REMEMBER SEEING DRAGON'S LAIR,

AND NOT REALLY BEING ABLE TO UNDERSTAND WHAT IT WAS

BECAUSE IT LOOKED LIKE A MOVIE.

YOU IMMEDIATELY HAD A CROWD OF PEOPLE AROUND IT,

GOING, "OOH, WHAT'S THAT? WHAT'S THIS?"

NARRATOR: THIS VIDEO GAME FEATURED STATE OF THE ART LASERDISC TECHNOLOGY

WHICH ODD PLAYERS WERE STRIKING HAND-DRAWN VIDEO CLIPS

WITHIN THE GAMEPLAY.

THE LASER DISC ESTABLISHED A NEW PARADIGM.

DRAGON'S LAIR DEVOURED COINS AT TOP SPEED.

50 CENTS AT THE TIME WAS A LOT.

I STILL REMEMBER BEING LIKE, "HEY, THIS GAME IS DOUBLE EVERYTHING ELSE."

BUT OF COURSE IT WAS SO PRETTY AT THE TIME, YOU'RE LIKE,

"OKAY, IT'S WORTH IT."

SAVE ME!

NARRATOR: WITH GRAPHICS THIS SEXY,

IT DIDN'T EVEN MATTER THAT THE GAME PLAY WAS SO POOR.

OF COURSE, IT HAD SOME ISSUES

BECAUSE THEN I PLAYED IT AND YOU DIE IMMEDIATELY

IF YOU DON'T FLICK THE CONTROLLER TO THE LEFT OR RIGHT

OR WHEREVER YOU'RE TRYING TO GO IN THAT CASTLE

THAT NEVER SEEMED TO END.

BUT IT REALLY OPENED EVERYBODY'S EYES TO THE POSSIBILITY

OF WHAT YOU REALLY COULD DO WITH VIDEO GAMES.

[LAUGHS]

NARRATOR: THE GAME'S TECHNICAL INGENUITY EARNED IT A PLACE IN THE SMITHSONIAN MUSEUM

IN WASHINGTON,

FEATURED THERE ALONGSIDE DRAGON'S LAIR ARE TWO OTHER INDUSTRY BEACONS,

PAC-MAN AND OF COURSE, PONG.

ALONGSIDE THE LASERDISC,

MOVING CABINETS ALSO KEPT PEOPLE INTERESTED IN THE ARCADES.

VIDEO GAME DEVELOPERS HAD TO SORT OF GO BACK TO THE DRAWING BOARD

AND THINK OF NEW WAYS, NEW CABINET STYLES.

NEW GAMES, NEW GAME PLAY EXPERIENCES.

NARRATOR: JAPANESE GAME DESIGNER, YU SUZUKI,

MADE HIS MARK WITH AN ARRAY OF SIMULATORS

THAT BECAME STAR ATTRACTIONS IN ARCADES WORLDWIDE.

HIS MASTERPIECE, 1986'S OUTRUN,

OFFERED GAMERS THEIR CHOICE OF BOTH SOUNDTRACK

AND ROUTE.

BEYOND A SIMPLE RACING GAME,

SUZUKI PROVIDED PLAYERS AN ACTUAL DRIVING EXPERIENCE.

AS SOON AS YOU SIT IN A CAR THAT WILL MOVE WITH YOU,

WILL GIVE YOU THAT SENSATION,

ALL OF A SUDDEN, IT IS A FULL BODY EXPERIENCE.

SO, THE EVOLUTION OF OUTRUN IN THAT FULL BODY IMMERSION

IS NOW WHAT WE'RE SEEING

WITH MOTION CONTROL GAMES AND ALL THE REST OF IT.

NARRATOR: YEARS LATER, DANCE DANCE REVOLUTION WOULD TRANSCEND ARCADE PLAY

AND EVEN MAKE IT'S WAY INTO PHYSICAL EDUCATION CLASSES,

IN THOUSANDS OF U.S. SCHOOLS.

[ OLD TIME ROCK AND ROLL PLAYING]

THEN CAME THE GAME THAT MADE US ALL ROCK STARS.

GUITAR HERO.

YOU PICK UP A GUITAR,

AND YOU HOLD DIFFERENT BUTTONS BASED ON WHAT'S ON SCREEN AND YOU STRUM.

ANYBODY CAN DO THAT.

AND IT'S GREAT 'CAUSE NOW YOU HAVE PEOPLE WHO WERE ALWAYS TRADITIONALLY,

"OH, I AM NOT A GAMER, I DON'T PLAY VIDEO GAMES."

AND SUDDENLY, TWO HOURS LATER, THEY ARE COMPLETELY HOOKED.

NARRATOR: EVEN THE BEATLES GOT IN THE GAME.

[GET BACK PLAYING]

SMITH: SOMEBODY SAYS, "HERE'S A PLASTIC GUITAR WITH SOME COLORED KEYS.

"ROCK OUT TO YOUR FAVORITE SONGS." "NO, I'M NOT GONNA DO THAT."

"OH, MY GOD, IS THIS FUN!"

NARRATOR: ANOTHER BIG SPECTACLE IN THE ARCADES,

WAS THE COMPETITIVE FURY OF FIGHTING GAMES.

1991'S STREET FIGHTER II TANTALIZED GAMERS

BE LETTING THEM HURRICANE KICK, TIGER KNEE,

AND DRAGON PUNCH THEIR SMACK-TALKING BUDDIES INTO SUBMISSION.

TO THIS DAY, IT RANKS ONLY BEHIND PAC-MAN AND SPACE INVADERS

IN THE AMOUNT OF REVENUE IT'S GENERATED.

AND WHENEVER THERE IS THAT KIND OF MONEY,

THERE ARE SURE TO BE COPYCATS.

FOR ALL OF THE CLONES THAT TRIED THEIR HAND AT THIS MARKET,

THE ONE THAT DREW THE MOST BLOOD

WAS MORTAL KOMBAT.

YOU DON'T JUST KNOCK OUT YOUR OPPONENTS,

YOU KNOCK OFF THEIR HEADS AND RIP OUT THEIR SPINAL CORDS.

COMPUTERIZED MALE VOICE: FINISH HIM!

[SCREAMING]

NARRATOR: THE GORE ABSOLUTELY AWED CHILDREN, BUT SHOCKED THEIR PARENTS.

I LOVED TO RIP SOMEONE'S HEAD OFF WITH THEIR SPINE,

I THOUGHT IT WAS LIKE THE COOLEST THING EVER.

OF COURSE, AS SOON AS THE PRESS GOT WIND OF IT,

THERE WAS ALL SORTS OF NEGATIVITY ABOUT IT.

[GRUNTING]

NARRATOR: THE CONTROVERSY CREATED A PERFECT POLITICAL STORM IN 1993.

THIS IS A HANDGUN, PURE AND SIMPLE.

AND PUTTING IT IN THE HANDS OF A KID JUST GIVES THEM THE WRONG IDEA.

NARRATOR: THE CONGRESSIONAL HEARINGS ON VIOLENCE AND VIDEO GAMES

RECEIVED WIDE COVERAGE IN THE MAINSTREAM MEDIA.

THERE IS A SERIOUS PROBLEM HERE. A REAL SERIOUS PROBLEM.

I HOPE YOU WALK AWAY WITH ONE THOUGHT TODAY,

THAT IF YOU DON'T DO SOMETHING ABOUT IT, WE WILL.

NARRATOR: THE HEARINGS EVENTUALLY LED TO THE CREATION

OF THE INDUSTRY STANDARD RATING BOARD,

SET UP TO REGULATE CONTENT, RATING IT TO AN APPROPRIATE AGE RANGE.

BUT IN THE SAME YEAR AS THE CONGRESSIONAL HEARINGS,

THE PC GAME, DOOM,

EXPLODED ON THE SCENE, ADDING MORE FUEL TO FIRE.

[GUN FIRING]

[MAN GROANING]

THE VIOLENCE WAS IMMERSIVE AND PERSONAL.

AND THE EXPERIENCE WAS TRANSFERRED TO THE FIRST PERSON PERSPECTIVE.

[MAN GRUNTING]

GAMERS GOT THEIR FIRST GLIMPSE OF A TRULY VIRTUAL REALITY.

[GRUNTING CONTINUES]

BUT EVEN THOUGH YOU PLAYED AN ASSASSIN,

DOOM WAS ACTUALLY A SOCIAL GAME.

PEOPLE WERE STARTING TO BASICALLY BRING THEIR COMPUTERS

OVER TO OTHER PEOPLE'S HOUSES ON THE WEEKENDS

AND THEY CALLED THAT THE LAN PARTY.

SO, LOTS OF LAN CARDS AND CABLE WERE BEING SOLD LIKE CRAZY.

THEY WERE SELLING SO MUCH OF THE STUFF

'CAUSE NOW NETWORK GAMING WAS REALLY HERE.

LAN PARTIES GOT TO BE REALLY BIG.

EVERYBODY WAS JUST CRATING THEIR MACHINES,

THE LOBBY WOULD COME UP AND YOU'D SEE EVERYONE IN THE LOBBY

AND YOU WOULD INSTIGATE A GAME WITH THEM

AND BASICALLY, YOU GOT CONNECTED TO THEM

OVER THE MODEM WITH SOMEONE THAT YOU JUST MET THROUGH THE SERVER.

THAT WAS KIND OF OUR FIRST GLIMPSE AS TO WHAT THE POWER OF SOCIAL NETWORKING

WAS GOING TO EVENTUALLY BECOME LATER IN THE INDUSTRY.

NARRATOR: SO MANY DEVELOPERS CLONED DOOM'S FORMULA

THAT AN ENTIRE GENRE OF FIRST PERSON SHOOTERS APPEARED.

FRANCHISES LIKE CALL OF DUTY AND HALO STILL DOMINATE TODAY,

GROSSING BILLIONS OF DOLLARS.

THE LOOK AND THE SOUND CONTINUE TO IMPROVE WITH EACH GENERATION,

BUT THE BASIC GAME REMAIN THE SAME.

A KILLING SIMULATOR.

THESE TWO GAMES BECAME THE SHORTHAND

FOR EVERYTHING THAT WAS WRONG WITH VIDEO GAMES.

DARION LOWENSTEIN: DOOM AND MORTAL KOMBAT GOT SO MUCH NEGATIVE FEEDBACK IN THE PRESS,

AND WHEN MYST CAME OUT, IT SOLD MORE COPIES

OF ANY GAME THAN PRETTY MUCH ANYTHING ELSE AT THE TIME HAD.

AND IT WAS COMPLETELY NON-VIOLENT.

THE GAME OF THE YEAR

HAS ALWAYS BEEN A BOARD GAME AND THIS YEAR IT'S NOT.

MAN ON TV: THE CD-ROM GAME, MYST, SOLD OVER ONE MILLION COPIES.

LANG: THE POINT OF IT WASN'T TO SHOOT ANYBODY IN THE HEAD

OR TO ESCAPE FROM A DUNGEON,

THE POINT WAS REALLY TO JUST GIVE YOURSELF OVER TO THE GAME.

MYST WAS JUST GORGEOUS.

THE VISUAL QUALITY WAS JUST SO EPIC AND SO IMMERSIVE.

AND THE GAME PLAY,

REQUIRED YOU TO APPRECIATE THAT.

AND SO THOSE GAMES, EVEN THOUGH THEY WERE A SLOWER PACE,

THEY ENGAGED YOU BY WAY OF THINKING.

NARRATOR: THE GAME WOULD NOT HAVE BEEN POSSIBLE WITHOUT THE NEWLY EMERGENT CD-ROM,

AN EVOLUTION OF THE LASERDISC TECHNOLOGY BUT ONE QUARTER THE SIZE.

NOAH FALSTEIN: CD-ROMS WERE ONE OF THE MOST STUNNING ADVANCES THAT WE HAD IN TECHNOLOGY.

IN ONE FELL SWOOP, WE HAD ABOUT 100-FOLD INCREASE IN STORAGE SPACE,

AND SUDDENLY, TO OUR HORROR, WE REALIZE

THAT WE'RE GONNA HAVE TO FILL ALL THAT STORAGE TO BE COMPETITIVE.

COME ON, YOU GUYS, YOU GOT TO HELP ME. PLEASE USE, THE TRAPS.

NARRATOR: TO STAND OUT, GAME DEVELOPERS STARTED PRODUCING CHEAP VIDEO CLIPS

TO INCLUDE IN THE GAME PLAY.

[SCREAMING]

AN UNFORTUNATE SIDE EFFECT OF HAVING ALL THAT DISC SPACE TO FILL

AND SO LITTLE KNOWLEDGE ABOUT VIDEO PRODUCTION.

GAMES LIKE DOOM AND MYST REVEALED A HUGE GAP

BETWEEN PC AND CONSOLE GAMING.

ALL OF THE EXCITING 3D GAMES WERE ON THE PC,

THAT WAS UNTIL SONY RELEASED THE PLAYSTATION.

SONY TOOK FULL ADVANTAGE OF THE CD-ROM,

NOT BY PACKING THE DISC WITH SUBSTANDARD VIDEO CLIPS,

BUT WITH IMPRESSIVE THREE-DIMENSIONAL GAME WORLDS.

WITHIN A FEW YEARS, THE PLAYSTATION WOULD COME WITH A CONTROLLER

DESIGNED SPECIFICALLY FOR 3D GAMING.

SONY PUT ALL OF THEIR STOCK BEHIND THE 3D EXPERIENCE.

THE JUMP TO 3D WAS A BIG DEAL.

SO, YOU TRANSLATED THE 2D PLATFORMERS INTO 3D,

THAT WAS A SCARY PROPOSITION.

IT BROUGHT IN ALL KINDS OF TECHNICAL PROBLEMS

THAT COULDN'T EVEN CONCEIVE OF IT BEFORE YOU ACTUALLY GOT THERE.

THE WHOLE CONCEPT OF WHERE THE CAMERA IS

SUDDENLY BECAME A QUESTION.

THERE WAS NO QUESTION OF WHERE THE CAMERA WAS BEFORE THAT.

"WHERE'S THE CAMERA GONNA BE? WHERE'S IT GONNA GO?

"HOW'S IT GONNA GET FROM ONE TO THE OTHER?"

EVERY GAME HAS A CAMERA WRESTLING MATCH

THROUGHOUT THE ENTIRE DEVELOPMENT.

NARRATOR: THE INVESTMENT PAID OFF WITH 1996'S TOMB RAIDER.

IT COMBINED A MESMERIZING GAME WORLD

WITH A BRAND-NEW VIDEO GAME ICON, LARA CROFT.

ERIK LINDSTROM: THE CHARACTER DOESN'T ALIENATE WOMEN.

IT ACTUALLY HAS QUITE A FEMALE FOLLOWING.

A LOT OF THE FEMALE GAMERS CAN APPRECIATE

HOW SHE'S VERY STYLISH AND SHE'S VERY SEXY,

BUT SHE IS NOT PRESENTING HERSELF AS A SEX OBJECT.

SHE DOES NOT USE HER SEXUALITY AS A TOOL.

SHE DOES NOT TALK TO MEN IN THE GAMES

IN ANY KIND OF COQUETTISH FASHION.

SHE'S STRONG, SHE'S INDEPENDENT. SHE'S SELF-MOTIVATED.

IN FACT, SHE'S A BITCH.

THAT'S PART OF THE FANTASY,

IS BEING ABLE TO DO MORE THAN YOU REALLY COULD DO.

EVERYTHING WAS SCALED AROUND HER.

[GRUNTING]

HER JUMPS, HER REACH, YOU KNEW WITH CERTAINTY IN TOMB RAIDER,

WHERE YOU COULD JUMP, HOW HIGH YOU COULD JUMP.

EVERYTHING WAS WORKED OUT IN TERMS OF SQUARES.

LARA CROFT: I'D FINALLY SET OUT TO MAKE MY MARK.

TO FIND ADVENTURE.

BUT INSTEAD,

ADVENTURE FOUND ME.

PHIL CAMPBELL: I STILL THINK THAT THE TOMB RAIDER GAMES THAT THEY'RE RELEASING NOW

ARE REALLY GOOD.

IT'S GOT LEGS, THAT FRANCHISE, VERY SHAPELY LEGS, I GUESS.

NARRATOR: THE NEW GENERATION OF VIDEO GAMES WAS BREATHTAKING.

THE GAME WORLD ENABLED BY 3D TECHNOLOGY

WERE ABSOLUTE GAME CHANGERS.

ENTER, THE OPEN WORLD.

[MAN CHATTERING ON RADIO]

A SERIES THAT TOOK FULL ADVANTAGE

OF THE OPEN-ENDED FREE ROAMING ENVIRONMENT,

WAS GRAND THEFT AUTO.

[CAR ALARM BLARING]

MURRAY: FREE ROAMING GIVES THE PLAYER

THE ABILITY TO GO ANYWHERE AND DO ANYTHING.

LOT OF GAMES, YOU'RE ALWAYS ON A PATH.

EVEN THOUGH YOU FEEL LIKE YOU HAVE THE ABILITY

TO GO LEFT OR RIGHT,

YOU'RE STILL SORT OF ON A PATH THAT GETS YOU FROM POINT A TO POINT B

SO YOU CAN GO FROM ONE STORY POINT TO THE NEXT.

AN OPEN WORLD GAME, YOU DO FEEL LIKE, "I HAVE A CHOICE."

IT REALLY TIES BACK INTO THAT VERY NOTION OF INTERACTIVITY,

WHERE YOU ARE THE DUNGEON MASTER IN THIS WORLD.

[SIREN WAILING]

LOWENSTEIN: GRAND THEFT AUTO IS A VIRTUAL PLAYGROUND

THAT LETS YOU DO WHAT YOU'VE ALWAYS WANTED TO DO.

THAT LETS YOU BE THE CRAZY GUY IN AN ACTION MOVIE.

IT LETS YOU BE THE BADASS DUDE WHO OWNS THE CLUB.

YOU CAN GET TO A POINT WHERE YOU PISS OFF SO MUCH OF THE CITY

THAT THEY'RE SENDING SWAT TEAMS AND THEN THE NATIONAL GUARD AFTER YOU.

WHO DOESN'T WANNA DO THAT?

MAN: ...BLOW THEIR HEAD OFF!

IT WAS ONE OF THE FIRST VIDEO GAMES

THAT REALLY LET YOU DO WHAT YOU WANNA DO.

PEOPLE WHO DON'T PLAY VIDEO GAMES OR PARENTS VIEW ANY VIDEO GAME

AS A CHILD'S TOY.

SO, WHEN THEY HEAR, "DO YOU KNOW THERE'S A VIDEO GAME

"WHERE YOU KILL POLICEMEN?" "OH, MY GOD!"

MY ANSWER TO THAT IS, WHEN WAS THE GOLDEN AGE OF PEACE

THAT MEDIA DESTROYED?

NARRATOR: BUT HOW CAN A SIMPLE VIDEO GAME BE SO CONTROVERSIAL?

MURRAY: IT CAUSES SUCH A HEIGHTENED REACTION

BECAUSE IT TAKES YOU AWAY FROM JUST READING SOMETHING

OR WATCHING SOMETHING INTO ACTUALLY PARTICIPATING IN IT.

[CROWD CLAPPING]

[PEOPLE CHEERING]

NARRATOR: AS IN ANY OTHER MEDIA,

THERE'S ALWAYS A PLACE FOR TRANSGRESSION.

A MEANS TO EXPLORE THE CONSCIOUSNESS OF THE SOCIOPATHIC

AND THE MENTALLY ILL.

IN 2005, AN INDEPENDENT PROGRAMMER RELEASED A GAME

CENTERED AROUND THE EVENTS OF THE 1999 COLUMBINE MASSACRE.

THE GAMEPLAY INVOLVES LISTENING TO MARILYN MANSON,

DRINKING VODKA,

AND PLAYING DOOM.

THE ROLE OF VIDEO GAMES IN OUR SOCIETY WAS BEING CHALLENGED.

WE CAN READ BOOKS ABOUT COLUMBINE, WATCH COLUMBINE,

BUT CAN WE ALSO PLAY COLUMBINE?

MURRAY: THERE'S ALWAYS A PLACE FOR IT.

IT'S A FREE SOCIETY. SO YOU CAN ALWAYS BUILD SOMETHING AND PEOPLE ARE GONNA

WANNA PLAY STUFF LIKE THAT. AND WHO SAYS YOU SHOULDN'T?

MAN: MR. LOUGHNER WILL SPEND THE REMAINDER OF HIS NATURAL LIFE IN PRISON.

...VIDEO GAME AFTER THE OTHER, SHOOTING...

...COLUMBINE, VIRGINIA DEATH...

WHAT HAPPENED IN CONNECTICUT...

MAN: THIS IS A SICK CULTURE.

NARRATOR: VIDEO GAMES HAVE BENT THE STATUS QUO

JUST AS MUCH AS ANY ART FORM HAS DONE IN THE PAST.

BUT IN THE CASE OF THE 2006 GAME, RAPELAY,

EVEN THE UNITED NATIONS GOT INVOLVED AND ASKED FOR A BAN.

WELL, IT'S CERTAINLY HARD TO BELIEVE THAT ANYONE WOULD EQUATE RAPE

WITH ENTERTAINMENT, BUT THAT IS JUST WHAT GAMEMAKERS IN JAPAN HAVE DONE.

FEMALE REPORTER: THIS ONE CALLED RAPELAY,

BEGINS WITH A TEENAGE GIRL ON A SUBWAY PLATFORM.

WITH A CLICK OF YOUR MOUSE, YOU CAN GROPE HER AND LIFT HER SKIRT.

THESE SORT OF GAMES THAT NORMALIZE

EXTREME SEXUAL VIOLENCE AGAINST WOMEN AND GIRLS

HAVE REALLY NO PLACE IN OUR COMMUNITIES.

MARK SODERWALL: IT'S ADAM AND EVE KIND OF A THING.

GOD SAID DON'T TAKE THE APPLE.

"OKAY. BUT WHY? WHAT ABOUT THE APPLE?"

[WHIMPERING]

I DO THINK THAT GAME DEVELOPERS HAVE A KIND OF PERSONAL RESPONSIBILITY

TO THINK ABOUT THE VIOLENCE AND HOW IT'S DEPICTED IN THEIR GAMES.

MAN: WE'RE HERE FOR A LONG OVERDUE CHECKUP.

FALSTEIN: ONE EXAMPLE, I WORKED ON A RECENT SERIOUS GAME CALLED REMISSION

THAT IS HELPING KIDS WITH CANCER STICK WITH THEIR TREATMENT REGIMEN.

GIRL: LET'S DO THIS. BOY: ALL RIGHT.

NOW YOU'RE COOKING. GIRL: ANYMORE?

DAVID WARHOL: AND IT'S WRITTEN SPECIFICALLY FOR TEENAGERS

TO HELP THEM UNDERSTAND WHAT'S GOING ON IN THEIR BODY

AS THEY'RE GOING THROUGH THEIR CANCER TREATMENT.

WE HAVE TO SEE THE INTERNAL EFFECTS

OF DEHYDRATION, THE PROBLEM OF GROWING CANCER COLONIES.

THE MISSIONS ARE ALL MEDICALLY THEMED AND ALL THAT.

KIDS WHO PLAYED THIS GAME TOOK BETTER CARE OF THEMSELVES

THAN THE KIDS WHO DIDN'T PLAY THE GAME.

SO, IT'S USING GAMES AS A WAY FOR SOCIAL CHANGE.

NARRATOR: SOCIAL CHANGE IS ALSO THE GOAL OF DARFUR IS DYING,

WHICH TAKES PLACE IN A REFUGEE AND DISPLACED PERSONS CAMP IN SUDAN.

THE PLAYERS LEARN ABOUT SOME OF THE REAL WORLD CHALLENGES

THAT OVER 2.5 MILLION REFUGEES ARE EXPERIENCING IN DARFUR.

AS WAYS OF REDUCING THE VIRTUAL ATTACK THREATS BY SUDANESE MILITIA,

GAMERS ARE WELCOME TO SIGN ON TO A PETITION,

TO THE PRESIDENT OF THE UNITED STATES.

MERETZKY: JUST THE SIMPLEST GAME DONE

BY A HANDFUL OF STUDENTS WITH A NEXT TO NOTHING BUDGET

AND YET IT WAS JUST REALLY EFFECTIVE.

SORT OF CONNECTING THE DOTS

IN A WAY THAT JUST READING ABOUT THE SITUATION DOESN'T.

[JAPANESE SONG PLAYING]

[MAN SPEAKING JAPANESE]

NARRATOR: THE MOST CONTROVERSIAL GAMES GET THE MOST ATTENTION.

BUT IN REALITY,

THE GAMES THAT KEEP PLAYERS PLAYING FOR THE MOST AMOUNT OF TIME

ARE THE ONES THAT CATER TO OUR NURTURING INSTINCTS,

LIKE THE MIND-BOGGLING TAMAGOTCHIS.

WELL, MINE SLEEPS LIKE A LITTLE ANGEL.

AND HERE'S A COMPLETELY NON-COMBATIVE, BLOOD FREE,

ADORABLE JAPANESE CRAZE THAT SORT OF SET FIRE HERE IN THE U.S.

IT WAS AT A TIME BEFORE MOBILE PHONES.

AND IT WAS THIS TINY DEVICE YOU COULD CARRY IN YOUR POCKET.

AND YOU HAD TO KEEP THIS CREATURE ALIVE.

MINE WOULD ALWAYS DIE AFTER FOUR OR FIVE DAYS.

IT WOULD ALWAYS PISS ME OFF SO I'M LIKE,

"I FED YOU, I CLEANED UP YOUR POOP, I WATERED YOU AND YOU DIED.

"WHAT THE HELL!"

LANG: YOU COULDN'T JUST PLAY IT AND THEN PUT IT DOWN.

WHEN YOU THINK ABOUT TAMAGOTCHI,

IT REALLY WAS THE FIRST MOBILE SOCIAL GAME,

THAT REALLY CAPTURED YOUNG PEOPLE'S ATTENTION.

GIRL: TAMATOWN IS MAKING MORE ROOM FOR FUN.

LANG: THE IDEA THAT YOU HAD TO CONTINUALLY FEED AND TAKE CARE OF YOUR TAMAGOTCHI

IS NOW RELIED UPON AND MAKES MILLIONS AND MILLIONS OF DOLLARS.

[DOORBELL RINGING]

NARRATOR: THE CONCEPT WAS CARRIED SEVERAL STEPS FURTHER

IN 1999 WITH THE SIMS,

THE TOP-SELLING COMPUTER GAME OF ALL TIME.

THE SIMS GAVE THE PLAYER AN ENTIRE FAMILY TO TAKE CARE OF.

IT'S THE IDEA OF BEING ABLE TO EMULATE WHAT HAPPENS IN YOUR DAY TO DAY LIFE,

AND SORT OF PUT IT OUT THERE INTO A VIRTUAL WORLD

OR THAT FANTASY VERSION OF YOURSELF. AND THAT'S REALLY COMPELLING.

IT HIT A WIDE RANGE OF PEOPLE

THAT YOU WOULDN'T NECESSARILY REFER TO AS GAMERS.

IT WAS SOMETHING THAT YOU WOULD GET INVESTED IN,

YOU'D HAVE YOUR FAMILY OF SIMS AND YOU'D WANT TO TAKE CARE OF THEM

AND YOU'D WANT TO LEVEL THEM UP AND YOU'D WANT TO MAKE SURE

ALL THEIR NEEDS ARE TAKEN OF AND YOU TRY TO WORK AND CHECK IN OFTEN

TO MAKE SURE THAT THEIR MOOD WAS HAPPY.

[SPEAKING FOREIGN LANGUAGE]

ROLE-PLAYING GAMES. WHAT IS IT ABOUT IT THAT KEPT PEOPLE PLAYING

WEEK AFTER WEEK, AND IT WAS THIS "ALWAYS EARNING SOMETHING" MENTALITY.

EVERY SINGLE THING YOU DID HAD AN IMPACT

AND YOU WERE REWARDED FOR IT.

NARRATOR: WHEN THE GAME REINVENTED ITSELF AS A FACEBOOK APPLICATION IN 2011,

IT GAVE PLAYERS THE ABILITY

TO INTERACT WITH MILLIONS OF OTHER PLAYERS

IN THE GAME WORLD.

IN COMES THE INTERNET

AND NOW THE PLAYING FIELD IS LEVEL AGAIN.

NARRATOR: A NEW TERM WAS COINED.

SOCIAL GAMING.

ONCE WE MADE THAT TRANSITION

AND FACEBOOK WAS A HUGE PLAYER IN THIS,

SUDDENLY, WE HAD 800 MILLION PEOPLE PLAYING GAMES.

SUDDENLY, YOU TOOK GAMES FROM BEING SOMETHING THAT EXISTED FOR KIDS

IN A BASEMENT

TO SOMETHING THAT EVERYBODY UNDERSTOOD AND COULD INTERACT WITH.

NARRATOR: AND THEN THERE'S FARMVILLE,

THE 2D FARMING SIMULATOR.

MUCH LIKE TAMAGOTCHI,

FARMVILLE REQUIRED PLAYERS TO CONSTANTLY CHECK IN AT SPECIFIC TIMES

TO MAXIMIZE GAME RESULTS.

IF YOU PLANT A CROP AT 1:00,

YOU'D BETTER BE NEAR A COMPUTER AT 9:00 FOR THE HARVEST.

YOU COULD PLAY 10 MINUTES,

BUT IF YOU JUST PLAYED ANOTHER TWO MINUTES,

YOU'D BE ABLE TO GET THE NEXT ACHIEVEMENT.

NARRATOR: ZYNGA GAMES RELEASED FARMVILLE AS A FREE FACEBOOK APPLICATION IN 2009.

IT QUICKLY BUILT A FRANCHISE OF OVER 250 MILLION USERS

PLAYING FREE-TO-PLAY GAMES ALL OVER THE WORLD.

SMITH: FREE-TO-PLAY IS A VASTLY BURGEONING AREA

OF THE WHOLE VIDEO GAME SPACE.

FREE-TO-PLAY? WHY'D YOU CREATE THIS GAME AND GIVE IT AWAY FOR FREE?

LITTLE INCREMENTAL STEPS,

THAT, "THIS IS ONLY GONNA COST DOLLAR 0.50" OR, "THIS IS JUST A DOLLAR."

AND ALL OF A SUDDEN, YOU GOT A GAME THAT

YES, YOU PLAYED FOR FREE AND YOUR CREDIT CARD STATEMENT SAYS,

"I JUST SPENT 700 BUCKS."

THE DESIGNERS HAVE FIGURED OUT A WAY TO GAME THE GAMER.

TO GET THEM TO COME BACK

AND ALSO SHARE WITH AS MANY PEOPLE AS POSSIBLE

BY OFFERING THESE LITTLE TRICKS OF REWARDS.

IT'S ALL ABOUT GETTING AS MANY USERS

SPENDING AS MUCH MONEY INCREMENTALLY, FOR THEIR SHAREHOLDERS.

THE COST OF GAMES NOW AT THAT TRIPLE A LEVEL THAT YOU NEED

TO SELL THOSE NUMBERS IS GETTING INTO NINE FIGURES.

MURRAY: ZYNGA REALLY DID AN AMAZING JOB

OF REALLY TAKING JUST MASSIVE AMOUNTS OF DATA

AND REALLY UNDERSTANDING WHAT PLAYERS DO

AND THEN BEING ABLE TO WORK WITH THAT DATA IN A LIVE TESTING POOL.

WHEN YOU HAVE MILLIONS AND MILLIONS OF PEOPLE INTERACTING WITH SOMETHING,

YOU'RE ABLE TO SEE IN REAL TIME WHAT PEOPLE ARE DOING.

PEOPLE RESPOND TO THIS GAME DIFFERENTLY

AND YOU CAN ACTUALLY SEE ACTUAL NUMBERS

AND NUMBERS BEING TRANSLATED INTO DOLLARS.

AND YOU CAN SEE THE REACTION IN REAL TIME.

NARRATOR: VIDEO GAME DESIGNERS ARE BEHAVIORISTS,

FOCUSING ON LEARNING, PREDICTING,

AND REVERSE ENGINEERING THE GAMER'S NEXT MOVE.

THE GOAL IS TO GET RID OF MANUALS OR INSTRUCTIONS ALTOGETHER.

GETTING RID OF ANYTHING THAT TAKES THE GAMER OUT OF THE ZONE.

IF THE GAME IS TOO EASY, THE GAMER GETS BORED.

IF IT'S TOO HARD, THE GAMER GETS FRUSTRATED.

BUT IF THE ENGINEERING IS JUST RIGHT,

THE DESIRED STATE OF IMMERSION IS ACHIEVED.

LOWENSTEIN: THE GOAL OF ANY VIDEO GAME IS TO PROVIDE THE MOST FUN,

ENTHRALLING AND COMPLETELY ADDICTIVE EXPERIENCE.

THAT SENSE OF BEING THERE IN THE MOMENT.

SMITH: WHAT HOOKS ARE WE PUTTING IN

TO MAKE SURE THAT THEY KEEP COMING BACK?

THERE'S A GOAL, THERE'S AN OBJECTIVE, YOU RECEIVE SOMETHING BACK.

KEEPS PEOPLE INVESTING

BECAUSE THEY ACTUALLY FEEL LIKE WHAT THEY DO MATTERS.

NARRATOR: MANAGEABLE RESULTS, CLEAR RULES, GOALS TO BE CONQUERED.

COMPLETE ENGAGEMENT.

AND NO VIDEO GAME GENRE HAS MORE ADDICTED FANS

THAN THE MASSIVE MULTIPLAYER ONLINE ROLE-PLAYING GAMES,

THE MMOS.

STARTING FROM THE FIRST MAJOR SUCCESS OF RICHARD GARRIOTT'S ULTIMA ONLINE,

HIS ADVENTURE WORLD PLAYING GAME

COMBINED THE OLD DUNGEON MASTER GAME IDEA

WITH THE CONNECTIVE POWER OF THE INTERNET.

MURRAY: MMOS ARE NOT NECESSARILY JUST ABOUT THE GAME ITSELF,

IT'S ALL ABOUT SOCIALIZING WITH YOUR FRIENDS.

THIS IS PEOPLE ALL OVER THE COUNTRY, ALL OVER THE WORLD EVEN.

SO I CAN PLAY WITH FAMILY IN ENGLAND,

AND AS MUCH AS WE MIGHT BE PLAYING THE GAME,

WHAT'S ACTUALLY BROUGHT ME IN THERE IS THE SOCIAL ELEMENT.

THERE'S BEEN COUPLES THAT HAVE MET EACH OTHER ONLINE,

OR PEOPLE THAT JUST FIND A COMMUNITY THAT THEY DON'T HAVE IN THE REAL WORLD

WHERE THEY CAN CONNECT WITH PEOPLE THROUGH PLAYING GAMES ONLINE.

NARRATOR: THE MOST POPULAR MMO IS WORLD OF WARCRAFT.

A MEGA-HIT WITH MORE THAN 10 MILLION SUBSCRIBERS.

THEIR COLLECTIVE TOTAL OF HOURS PLAYED

AMOUNTS TO MORE THAN SIX MILLION YEARS.

THAT'S MORE TIME THAN IT TOOK THE HUMAN SPECIES TO EVOLVE.

LOWENSTEIN: WORLD OF WARCRAFT HAS THIS HORRIBLE OPTION

WHERE YOU CAN TYPE "/PLAYED,"

AND IT WILL TELL YOU HOW MANY HOURS YOU HAVE PUT INTO THIS CHARACTER.

AND THAT IS BY FAR ONE OF THE MOST DEPRESSING THINGS YOU CAN DO IN LIFE.

WHEN YOU LOOK AND IT SAYS, "340 HOURS," AND YOU'RE GOING,

"WAIT, THAT'S HOW MANY WEEKS, HOW MANY MONTHS,

"HOW MANY SOCIAL EVENTS, HOW MANY THINGS HAVE I MISSED NOW?"

BUT THEN YOU'RE LIKE, "WAIT, MY CHARACTER LOOKS REALLY BADASS."

THERE'S FLAME COMING FROM THE SWORD

AND SHE CAN CAST FIREBALLS AND YOU'RE LIKE, "WAIT..."

IT'S LIKE YOUR GAMER SENSE OF PRIDE MIXES WITH YOUR REAL LIFE SENSE OF,

"OH, CRAP, I AM SINGLE AND I'M A BIG VIDEO GAME NERD."

NARRATOR: THANKS TO SPECIALIZED TRANSACTION AND SELL-BASED WEBSITES,

THE TIME SPENT IN MAKING VIRTUAL GOLD CAN BE TURNED INTO REAL WORLD DOLLARS.

JOHN SMEDLEY: LOOKING BACK ON IT, IT SEEMS OBVIOUS

BUT AT THE TIME WE DIDN'T THINK PEOPLE WOULD SPEND

200, 300 DOLLARS FOR A VIRTUAL SWORD. WELL, THEY DID.

THIS LED TO A PROBLEM CALLED FARMING

WHICH IS WHEN PEOPLE PLAY THE GAME OVER AND OVER

TO GET A SPECIFIC ITEM AND THEN TRY TO SELL IT.

NARRATOR: GAMING SWEATSHOPS PROLIFERATE IN PLACES LIKE INDONESIA,

CHINA AND MEXICO.

WITH UNDERPAID WORKERS PERFORMING MONOTONOUS IN-GAME TASKS.

LINDSTROM: WELL, PEOPLE PLAY GAMES FOR A LOT OF REASONS.

YOU CAN GET PEOPLE WHO PLAY A GAME AND THEY PLAY IT A LOT,

BUT THEY'RE NOT NECESSARILY HAVING FUN.

THEY'RE PLAYING IT BECAUSE THERE'S SOMETHING OBSESSIVE ABOUT IT

AND THEY WANT TO COMPLETE IT.

AND THERE'S A CERTAIN REWARD FACTOR TO THAT.

WE OFTEN SEPARATE THE CONCEPTS OF REWARD AND FUN.

REWARD CAN BE A VERY PAVLOV KIND OF SITUATION.

IT TRIGGERS YOUR BRAIN IN A WAY THAT YOU REALLY FIND REWARDING.

BUT IT'S NOT THE SAME THING AS HAVING A GOOD TIME.

NARRATOR: AFTER SPENDING SO MUCH TIME IN THE GAME WORLD,

GAMERS MAY FIND THEMSELVES STRUCK WITH A CERTAIN SENSE OF SHAME.

AN ARRESTING SENSE OF EMPTINESS AND WASTE

WHEN ONE CONSIDERS ALL THE OTHER THINGS

THAT COULD HAVE BEEN DONE WITH THEIR GAME TIME.

SOME GAMERS REPORT HAVING GONE INTO SHOCK

WHEN THEY DISCOVER THAT THEY'VE SPENT AN ENTIRE MONTH OF THE YEAR

IN THEIR GAME WORLD.

ARE CLINICALLY PROVEN NOW, GAME ADDICTIONS,

THAT THEY ACTUALLY HAVE PEOPLE GOING THROUGH THERAPY

BECAUSE THEY GET SO IMMERSED INTO THE GAMES THAT THEY PLAY,

THEY DO LOSE A LITTLE BIT OF REALITY.

LOWENSTEIN: GETTING THAT QUEST, GETTING THAT NEXT ITEM IS MORE IMPORTANT.

AND SUDDENLY, THEY WORK, SO THEY COME BACK AND PLAY WOW.

THEY GO TO SCHOOL SO THAT THEY CAN COME BACK AND PLAY WOW.

IT'S PROBABLY THE ASPECT OF THEIR LIFE THAT THEY HAVE THE MOST CONTROL OVER.

THE PIECE OF THEIR LIFE THAT THEY LOOK FORWARD TO MOST.

[SCREAMING]

AUTOMATED VOICE: ARE YOU FEELING UNFULFILLED? BORED WITH LIFE ON EARTH?

WHAT WOULD YOU SAY TO A NEW LIFE FILLED WITH ADVENTURE,

WHERE YOU CAN LIVE OUT YOUR DREAMS,

AND CLAIM YOUR FORTUNE?

WE CAN GIVE YOU THAT NEW LIFE INSIDE PROJECT ENTROPIA.

NARRATOR: IN THE MMO ENTROPIA UNIVERSE,

USERS INTERACT WITH THE HELP OF A FULL-FLEDGED CASH ECONOMY.

EVERYTHING THAT YOU DO WITHIN THAT WORLD COSTS MONEY

BUT YOU ACTUALLY EARN MONEY FOR ANYTHING THAT YOU OWN.

SUPPLY AND DEMAND.

IF YOU HAVE AN ASTEROID, PEOPLE WANNA GO VISIT THAT ASTEROID,

THEY WANNA GO AND MEET UP THERE WITH THEIR FRIENDS.

THEY CAN SPONSOR PARTIES, THEY HAVE VIRTUAL PARTIES THERE.

THERE'LL BE CERTAIN CREATURES THAT YOU'LL WANT TO INTERACT WITH.

SO, WHEN YOU BUY THAT ASTEROID,

THE ONLY WAY TO GET THERE IS YOU HAVE TO PAY A TAX

TO TAKE A SHUTTLE THERE AND ONCE YOU'RE THERE,

VERY SORT OF MICRO-TRANSACTION ORIENTED.

BUT HOW DOES IT WORK?

IT'S BECAUSE THAT ASTEROID ACTUALLY DRIVES REVENUE.

I HAVE A FRIEND THAT ACTUALLY BOUGHT AN ASTEROID FOR 100,000 DOLLARS.

WELL, EVERYBODY THOUGHT HE WAS CRAZY.

FOUR YEARS LATER HE SOLD IT FOR 600, 000 DOLLARS.

MADE AN ENTIRE CAREER,

GENERATING A REAL LIFE INCOME OUT OF IT.

NARRATOR: AND THERE IS SECOND LIFE.

THERE ARE NO UNIVERSAL REWARDS OR POINTS.

NO BAD GUYS TO BEAT OR MISSIONS TO ACCOMPLISH.

JUST AN EASILY CUSTOMIZABLE REPRESENTATION

OF LIFE.

MANY TALENTED ARTISTS HOST GALLERY EXHIBITS.

BANDS PLAY LIVE SHOWS.

COLLEGES AND EVEN MAINSTREAM BUSINESSES HAVE A PRESENCE.

IT'S NOT MUCH OF A GAME AT ALL. IT'S JUST A PLACE TO HANG OUT.

A PLACE TO BE.

AS MORE AND MORE REAL WORLD REPRESENTATIONS

HAVE CROSSED OVER INTO GAME PLAY DYNAMICS,

THE GAMES HAVE ALSO CROSSED BACK INTO REAL LIFE.

IN THE WAY THAT GENERATION G IS DIFFERENT FROM X, Y

AND ALL THE DIFFERENT GENERATIONS THAT WE MAY BELONG TO,

IS THAT VIDEO GAMES ARE THE PRIMARY FORM OF ENTERTAINMENT,

THAT GENERATION G IS CONSUMING.

IT IS THEIR PRIMARY FORM OF ENTERTAINMENT.

AND THIS IS ALREADY STARTING TO HAVE A TREMENDOUS EFFECT ON SOCIETY.

ALL AROUND US,

GENERATION G'S DESIRE FOR GAME-LIKE EXPERIENCES

IS RESHAPING INDUSTRIES.

SUDDENLY, GAMIFICATION BECAME, OH, AN INTERESTING IDEA.

NOW WE CAN GAMIFY ANYTHING.

IF YOU JUST START CHECKING IN,

THAT SORT OF BECAME THE EASIEST WAY TO COLLECT POINTS.

AND THEN YOU CAN SUDDENLY TURN THOSE THINGS IN.

YOU CAN GET A DISCOUNT COUPON. THAT'S A GAME.

YOU CAN GO INTO CORPORATIONS, GIVE THEM VIRTUAL REWARDS

WHICH THEN BECOMES REAL CURRENCY THAT THEY CAN POSSIBLY TURN IN.

THAT'S GAMIFICATION.

WHEN YOU START THINKING OF IT FROM THAT LENS,

SUDDENLY, EVERYTHING YOU DO HAS AN OBJECTIVE

AND A GOAL AND A REWARD TO IT.

AND IF YOU JUST USE A DEVICE, YOU ATTACH A DEVICE TO IT

OR AN APPLICATION TO IT, IT'S GAMIFIED.

NEWS REPORTER: IT'S CALLED WII-HAB.

HOSPITALS LIKE ST. MARY'S IN SAN FRANCISCO

ARE USING THE WII FIT VIDEO GAME FOR PHYSICAL REHAB.

LANG: TECHNOLOGY WAS SOMETHING THAT PEOPLE FEARED

OR THEY COULDN'T AFFORD IT,

BUT NOW, THOSE BARRIERS HAVE SORT OF COME DOWN.

AND IT'S MUCH MORE PERSONAL FOR PEOPLE.

THE DEMOGRAPHICS HAVE REALLY SHIFTED IN THE PAST FIVE YEARS.

WITH THE ADVENT OF THE WII, IT REALLY CHANGED EVERYTHING.

SMITH: IT SOLD TO PEOPLE THAT NEVER HAD A VIDEO GAME CONTROLLER.

ORGANIZATIONS THAT WOULD NEVER ORDINARILY SAY,

"YES, I'M GOING TO APPLY SOME BUDGET TO A VIDEO GAME CONSOLE,"

ALL OF A SUDDEN, THEY'VE GOT A WII IN THERE

BECAUSE IT'S GETTING THEIR AUDIENCES ACTIVE, MOVING AND IMMERSED.

LOWENSTEIN: AND THEN YOU LOOK AT THE KINECT,

WHICH ALLOWED PEOPLE TO INTERACT WITH A VIDEO GAME BY MOVING AROUND.

SO, IF YOU THINK ABOUT WHAT ARE THE NEXT LEVELS OF THAT,

BRAIN WAVES, RIGHT? WHY NOT?

MURRAY: THERE'S DEVICES OUT THERE THAT YOU CAN PUT ON YOUR HEAD

AND THEY'LL READ YOUR BRAIN WAVES

AND YOU DON'T HAVE TO USE A CONTROLLER,

IT CAN ACTUALLY UNDERSTAND THROUGH THE HEAT

IN CERTAIN PARTS OF YOUR BRAIN, WHAT YOU'RE TRYING TO DO ON SCREEN.

SO YOU CAN MANIPULATE PIXELS ON SCREEN JUST BY THINKING ABOUT IT.

LANG: THOSE KINDS OF BODY METRIC MEASURING GAMES ARE VERY RUDIMENTARY,

SO, IT'S NOT A COMPLETELY IMMERSIVE EXPERIENCE.

BUT I THINK IT'S SOMETHING THAT GAME MAKERS ARE DEFINITELY THINKING ABOUT.

THE KINECT CAN EVEN MEASURE YOUR BREATHING.

THERE'S A DEEPAK CHOPRA VIDEO GAME.

AUTOMATED VOICE: LEELA. LEELA IS A JOURNEY OF MIND AND BODY.

LANG: IT'S A MEDITATION GAME. THERE ARE SEVEN CHAKRAS

WHICH ARE ENERGY CENTERS WITHIN EACH OF US.

GENTLE MOTION IS ALL THAT IS NEEDED TO AWAKEN THE CHAKRAS.

LANG: AND I DON'T SEE THAT STOPPING.

ESPECIALLY WHEN YOU THINK ABOUT AUGMENTED REALITY AND WEARING GLASSES.

MAN: YEAH.

MEET ME IN FRONT OF STRAND BOOKS AT 2.

LOWENSTEIN: THE VIDEOS THAT GOOGLE'S RELEASED FOR THEIR GLASSES,

THEY'RE VERY PRACTICAL.

YOU'RE WALKING ALONG AND, HEY, YOU'RE WALKING TO THIS LOCATION.

MAN: AW, MAN, REALLY?

LOWENSTEIN: AND, "HEY, MY FRIEND JUST TWEETED THIS"

AND, "MY FRIEND JUST TEXTED THAT

"AND MY OTHER FRIEND JUST CHECKED INTO FOURSQUARE OVER HERE."

AND SUDDENLY IT'S THIS VERY PRACTICAL THING

THAT BRINGS IN ALL THESE APPLICATIONS

THAT WE'RE ALREADY DOING ANYWAY ON OUR PHONE,

EXCEPT THAT YOU CAN STILL WALK AND NOT WALK INTO A CAR

WHILE YOU'RE INTERACTING WITH YOUR WORLD.

AUTOMATED VOICE: WELCOME.

NARRATOR: SOCIETY'S MASSIVE INTEREST IN TECHNOLOGY

SUGGESTS IT MIGHT BE ONLY A MATTER OF TIME

BEFORE WE EMBRACE THE NOTION OF REALITY AUGMENTATION.

CHIPS ARE SO SMALL NOW

THAT YOU CAN PROBABLY START PUTTING THINGS INTO CELLS.

THAT BECOMES A WAY TO TRY TO UNDERSTAND DISEASE,

AND ACTUALLY DO SOMETHING GOOD.

BUT THERE'S ALWAYS THE ENTERTAINMENT ASPECT,

WHAT CAN PEOPLE DO TO ACTUALLY PLAY AROUND WITH THAT

OR CREATE SOMETHING THAT PEOPLE WOULD WANT TO BUY FOR ENTERTAINMENT?

IT'S SUPER EXCITING TO THINK ABOUT THE SCIENCE FICTION OF EVERYTHING.

THAT'S WHERE I STARTED GOING...

YOU CAN START THINKING OF ALL THE CRAZY,

MAYBE DARK THINGS YOU COULD DO WITH THAT.

MAN: A WORLD WHERE ANYTHING IS POSSIBLE.

THERE DEFINITELY IS THIS POSSIBILITY

THAT WE ARE GOING TO BE LIVING IN SOME MATRIX- LIKE VIRTUAL WORLD

WHERE OUR BRAIN WAVES AND ACTIVITIES

COULD BE MEASURED AND THAT WAY THERE IS NO INTERFACE.

MAN: THERE IS ONLY ONE WAY TO ENTER THE MATRIX.

[PHONE RINGING]

WE'RE IN.

IF YOU HAD THE CHANCE TO GO THERE, TO GO TO THESE DIFFERENT PLACES

IN THIS VIRTUAL WORLD, YEAH.

THAT WOULD BE GREAT.

AND THAT'S A PRETTY GOOD WAY OF SPENDING SOME TIME, I THINK.

AS AI GETS BETTER AND BETTER,

IT MAKES ALL OF THOSE INTERACTIONS MUCH MORE BELIEVABLE.

MAN: CAN YOU HEAR ME? YES.

MAN: ID. KPC 897504C.

MAN: CAN YOU MOVE YOUR HEAD?

SMITH: SO, YOU GET THAT SENSE THAT A CHARACTER THAT YOU SEE IN A GAME...

MAN: YOUR EYES NOW.

SMITH: ...IS SOMEBODY THAT YOU FEEL LIKE YOU KNOW

OR YOU HAVE A RELATIONSHIP WITH.

THAT KIND OF RECOGNITION, IF THAT HAPPENS,

A, UNBELIEVABLY FREAKY

FIRST FEW TIMES IT HAPPENS, BUT HOW COOL IS THAT?

I CAN LOOK AFTER YOUR HOUSE, DO THE COOKING, MIND THE KIDS.

I ORGANIZE YOUR APPOINTMENTS. I SPEAK 300 LANGUAGES

AND I AM ENTIRELY AT YOUR DISPOSAL AS A SEXUAL PARTNER.

NO NEED TO FEED ME OR RECHARGE ME.

I'M EQUIPPED WITH A QUANTIC BATTERY

THAT MAKES ME AUTONOMOUS FOR 173 YEARS.

DO YOU WANT TO GIVE ME A NAME?

PEOPLE WILL ALWAYS POINT TOWARDS THE NEGATIVE AND SAY,

"OH, BUT SEE, THERE'S SOMETHING THAT'S BEING LOST" WHEN ACTUALLY,

WHEN YOU LOOK AT THE PERCENTAGES OF WHAT PEOPLE ARE ACTUALLY USING,

GAMES FOR MORE AND MORE SO NOW, WHICH IS COMMUNICATING,

CONNECTING WITH PEOPLE FROM ALL OVER THE WORLD,

IT'S LIKE, "WELL, WHAT'S BEING GAINED?"

NARRATOR: COULD THE HUMAN SPECIES

EXIST IN A DIGITAL UNIVERSE OF ITS OWN DESIGN?

AT WHAT POINT DOES THE GAME END?

COULD THE LINE BETWEEN HUMANS AND MACHINES FADE AWAY FOREVER?

[BEEPING]