Video games - positive or negative externalities?

Not long ago video games such as Grand Theft Auto were being blamed for childhood obesity, reclusive children and an increase in violent crimes. These negative externalities were considered to be so harmful that some people felt certain games needed to be banned. It seems however that the general public has had a change of heart. 46% of a recent Times survey felt the reputation of the video game industry has improved due to one product…the Nintendo Wii. It produces many positive externalities such as reducing strain on the NHS, as an increasing number of people use games such as Wii Fit to develop an active and healthy lifestyle. Analysts even believe the console can improve family relationships as they get together to play games. Click read more for some classroom activities to go with this article.

Class discussion

Do you believe computer games have a positive effect on society?

GCSE style questions

1. Define market failure (2 marks)
2. Define negative externalities and give an example (3 marks)
3. The government believes games such as Grand Theft Auto produce negative externalities. Explain two ways in which they could solve the issue. (6 marks)