Utah's $2 billion video game industry is driven by one university.

• In the past ten years, Utah's video game industry has experienced a tremendous growth of over 230%, generating over $2.3 billion in revenue last year.
• The video game program at the University of Utah produces highly skilled graduates who are prepared for the industry, contributing to the growth and innovation in the local community.
• Local gaming studios have strong ties with University of Utah graduates, who helped create top-grossing games such as "Hogwarts Legacy" and "Fortnite," thereby strengthening Utah's reputation as a gaming hub.

The CNBC series "Cities of Success" highlights cities that have become thriving business hubs with an entrepreneurial mindset and have attracted investment, corporations, and talent.

In the past ten years, the video game industry in Utah has experienced explosive growth, increasing by over 230%, and generating over $2.3 billion in revenue in 2020 alone.

IBISWorld predicts that the market will contribute $4.5 billion to the economy in five years, according to market research.

The expansion of the video game industry is largely due to the innovative program offered by the University of Utah.

In a Salt Lake City classroom, students are engrossed in studying video game creation, contributing to an industry with a long history at the campus.

The university has produced notable individuals such as Doug Bowser, president of Nintendo of America, and Nolan Bushnell, founder of Atari and inventor of the popular game "Pong."

According to the university, games created by alumni of the school have generated more than $2 billion in lifetime revenue.

Michael Young, chair of the University of Utah's division of games, stated in an interview for CNBC's "Cities of Success: Salt Lake City" that many individuals who attended the university to study and later graduated went on to become influential figures in the gaming industry.

Leveling up

The gaming initiative at the University of Utah started as a modest project within the computer science department, as per Young.

In 2008, a group of students proposed a dedicated gaming area of study, which eventually gained traction.

The EAE program, which concentrates on gaming and interactive entertainment, was founded by 2010 and has a well-defined curriculum.

In 2021, the EAE program's bachelor's degree in gaming had grown to become the university's 10th-largest major, with approximately 1,200 undergraduates enrolled annually. This significant development began in 2017 when the program launched.

"The demand has just skyrocketed," Young said.

The University of Utah improved its ranking in the Princeton Review's 2024 top game design schools to No. 4 for both undergraduate and graduate programs, from No. 7 and No. 6, respectively, in 2023.

The program has a diverse student population, with 72% of its graduates hailing from outside of Utah.

The program will receive $25 million in funding from the university to support its growth.

Top-grossing games

"Hogwarts Legacy" was a bestseller in 2023, and John Blackburn, vice president and studio head at Avalanche Software, attributes its success to a talented team in Salt Lake City, many of whom are graduates of the University of Utah.

The game surpassed $1 billion in revenue last year.

Blackburn stated that there are likely at least 30 individuals present who are directly from that program.

The University of Utah has a long history of contributions to the gaming industry, with pioneering work in 3-D graphics, including the creation of the first 3-D graphics image and the development of early flight simulators by companies such as Evans & Sutherland, according to Blackburn.

"As Blackburn stated, that has significantly influenced the local gaming industry, leading to individuals leaving those companies and subsequently establishing their own game companies."

In 1995, Blackburn founded Avalanche Software and initially gained recognition for developing "Mortal Kombat" for the Super Nintendo and Genesis. Later, the company collaborated on titles such as "Cars" and "Toy Story 3," further establishing its reputation.

In 2017, Epic Games, based in Cary, North Carolina, introduced "Fortnite," a highly successful game with over 500 million registered users worldwide.

The game was created with contributions from teams worldwide, including those in Salt Lake City, where Donald Mustard, the game's co-creator and former chief creative officer at Epic, was based.

"Some schools in Utah, including the University of Utah and Brigham Young University, have excelled at establishing connections with local developers," Mustard stated.

Not many individuals possess the unique skill set of creating their own video game while in school, as Utah's education approach emphasizes.

"I wanted those kind of people on my team," Mustard said.