I've researched a good number of programs for game design, and most of them are at best an extension of general art or animation departments. They tend to be a good place to learn different tools like Maya or 3dsMax (and get them cheaply via student discounts

) but like most forms of art school fall terribly short in the area of job placement. Until we start seeing more programs run by industry vets, a lot of them face a potential future of becoming their own self-contained pyramid scheme much the same as 'fine arts' majors tend to be. In other words a degree in fine arts grants you the ability to pursue a graduate degree in fine arts, which in turn grants you the ability to teach fine arts at the undergrad level ...
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While I think gaming colleges are a nice step forward, I also think there is still a lot of benefit that can come from attending a general college, earning your BA or BS, then simply working your ass off to get into a studio.
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I completely agree with this. I'd also suggest picking up just about any game that ships with it's own SDK, which is becoming more and more common. NWN, Oblivion and even UT3 all have solid toolsets (loads of other recent games do as well). Modding, especially if you can put a project together as a team effort, is a good practice to get into if you're truly focused on getting a job in the industry. You'll not only get a better feel for what areas suit you best, but you can eventually produce something playable to show to studios as an example of what your skills are.