Texas Information Technology Services - Office of the Governor ...

Software
Overview
T
exas is home more than 660 software publishing
firms employing over 16,400. The sector
account for 11% of the state’s IT services
employment. It includes software design, development
and publication; computer and video game publishing;
and providing support services to software purchasers.
Computer and video gaming has become a major part
of the state’s software publishing segment and entertainment
industry. In fact, the latest data from the
Entertainment Software Association (ESA), a national
industry group, indicates that Texas ranks No. 2
nationally for computer and video game employment,
with over 13,600 individuals directly and indirectly
employed by the industry. The ESA further reports
16
Texas ranks No. 4 nationally for software
publishing employment.
-TechAmerica, 2011
that entertainment software is one of the nation’s
fastest growing industry segments, valued at $4.9
billion in 2009, according to the latest data available.
U.S. consumers spent $25.1 billion on video games,
hardware, and accessories in 2010 alone.
Texas in the Software Game
As home to 159 video game software companies
that employ 4,500 professionals, Texas has
earned a reputation as a center of video game
development. Austin is the leading location in
Texas for this industry, with 72% of the state’s
video game jobs found there. Dallas is home to
23% of those jobs, followed by Houston with
4%.
Video game companies spend over $234 million
per year in Texas, which represents an approximately
150% increase in spending since 2006,
according to the Texas Film Commission. See
pages 4-5 for details on State of Texas video
game industry incentives.
In 2010, one out of approximately every 16 U.S.
software publishing workers was employed in Texas,
and one out of approximately every 14 U.S. software
publishing firms was located in Texas, according to
U.S. government data.
The Texas software industry has attracted strong
venture capital (VC) support. In 2010 alone, VC firms
invested over $142 million in 37 Texas software
companies, according to PricewaterhouseCoopers.
From 2005 through 2010, VC firms invested over
$1.1 billion in 224 Texas software firms. To date, the
state’s Texas Emerging Technology Fund has invested
approximately $32.6 million in software-related
projects. See page 25 for more details.