Article: STAYING AHEAD OF THE GAME/ Interactive play is transforming the video game industry

The video game industry is exploding.

What began in 1972 as the simple ball and paddle of Pong has become a global network of players interacting with each other in virtual football stadiums and medieval fantasy worlds.

Video games have become a multibillion-dollar industry creeping up on Hollywood-sized revenues. In the United States alone, 60 percent of the population plays video games on computers and on consoles such as PlayStation 2.

By the time this holiday shopping season is over, the video game console market will have generated $8.3 billion in software and hardware revenue in 2000, estimates market research firm The Carmel

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