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New in-game ads speeding towards WipEout HD

WipEout HD (and Fury) will be receiving a 2.10 patch soon. In addition to "small improvements to front-end functionality" and some minor fixes, the 2.10 patch will change the way in-game advertisements are displayed. You'll recall, Sony was largely criticized for the game's State Farm ads which increased load times – a "no no" for the in-game ad model. SCEE marketing executive Mikel Arrien says they've learned from the controversy: "We have therefore focused on ensuring that the advertising is embedded as sympathetically to the overall experience as possible."

That doesn't mean ads have been completely removed from the picture with 2.10! In fact, more advertising is about to hit the game -- at least in European territories. "WipEout and in-game advertising and sponsorship have gone hand-in-hand since 1996, when a now famous energy drink appeared in the seminal Wipeout 2097 and over the years many brands and products have been associated with the series," Arrien said, trying to explain why the WipEout HD platform seems so ripe for commercialization.

Phantasy Star Portable 2 product placement is getting ridiculous

Oh, come on. Come on.

The incorporation of Fanta products into Phantasy Star Portable 2 was bad enough; though we could almost excuse it for its appropriately futuristic-sounding name. There's little we can do to reconcile the addition of Pizza Hut branding into the title, though -- especially when said addition includes a pizza box shield and pizza peel sword (seen above; no photoshopping necessary). Other in-game products include literal pizza huts, dolls of the company's Japanese mascot, Mr. Cheese, and an epic boss encounter against the Noid, who attempts to ruin delicious pizza pies regardless of their corporate affiliation.

Okay, so we made up that part about the boss fight -- sorta -- but the rest is totally for real!

Massive sees 'double-digit' in-game ad revenue growth in 2009

On the Microsoft Advertising Blog, J.J. Richards, head of Massive Incorporated, decided to dispel some rumors surrounding the in-game ad industry. Specifically, Richards noted that the in-game ad industry is "thriving." He adds that in fiscal 2009 Massive has seen "double-digit year-on-year revenue growth in the face of one of the worst economic crises of the last century," and that the company has surpassed its first quarter sales target by over 100 percent.

Richards spends the rest of the post explaining that in-game ads work, are easy to implement and, the kicker, gamers actually like them. He notes that all ads are placed with an eye toward realism, saying that "gamer satisfaction" is paramount and that all ads go through testing before being added to a game. Furthermore, he suggests that ads actually enhance the experience, contributing to realistic immersion.

Regardless of your feelings toward game ads, one thing is clear: They aren't going anywhere. Massive has already announced a fairly, well, massive lineup for this fall. Let's just hope Massive keeps the ads unobtrusive, unlike some other in-game ad companies.

[Via Edge]

Carmack says ad-based model not working for Quake Live


In addition to announcing support for Quake Live on Mac and Linux, John Carmack admitted that the current ad-based model wasn't exactly working for the game. To assuage the problem, id Software will soon be offering a subscription model in addition to the free-to-play model currently in place.

"The in-game advertising stuff has not been big business .... [it's] not going to be able to carry the project," Carmack said. Dually, he noted that while a subscription service will be offered, the game will never go exclusively "pay-to-play." According to Shacknews, the subscription model will allow players to create and host private server matches.This all sounds good to us -- now maybe all the hardcore Quake Live players will play in private servers and allow us to get a single shot off.

PAIN Trophies made easier, thanks to AXE


PAIN has some of the worst Trophies ever. However, things are going to get oh-so-slightly easier for PAIN veterans thanks to an unlikely partnership with AXE. (Yes, the deodorant company.) A new character, "Smooth Jarvis," will get a brand new set of AXE-inspired moves that will net you bonus points. These bonus points, in turn, can be helpful in unlocking PAIN's "Affliction Addiction," "D-Town Destruction," and "PAIN in the Park" Trophies.

We're certainly fans of this kind of in-game advertising (versus what WipEout HD offered). But, we beg the guys at Idol Minds: please make the "King of PAIN" Trophy easier. Please!

Double Fusion slows down WipEout HD with ads


The latest WipEout HD patch did more than just add Fury content to the game. No, it also introduced advertising courtesy of Double Fusion, "the leading in- and around-game advertising and gaming audience network." While in-game ads are nothing new, the implementation of WipEout's ads are causing quite a bit of grief for PS3 owners. Why? They slow down the game significantly.

Players have become accustomed to load screens, but now they must also wait for an advertisement to play before beginning a new race. As demonstrated by a user-captured video, the standard load time for WipEout HD is about eight seconds long. If an advertisement plays, the load time increases more than twofold: to nineteen seconds.

Most in-game advertisements appear as unobtrusive and non-interactive billboards. However, slowing down a game's performance to present ads in a program gamers have already paid for is far too intrusive. Jonathan Epstein, CEO of Double Fusion, stated that "Double Fusion is responding to advertiser demand and offering an engaging ad format while pushing in-game ad innovation to a new level." It's unfortunate that we have to wait while that new level loads.

[Thanks, Chris!]

Microsoft patents advertising Avatars for MMOs


As seen in documents dug up by Siliconera, Microsoft has patented what the site calls "advertars" -- Avatars generated by advertisers to pimp their products in MMOs and virtual worlds. According to the plan as it's laid out in the patent, players could be compensated with real-world currency or in-game items for listening to the pitches.

OK, we're sure that at this point, some of you have already spun around three times and thrown your 360s out the window hammer toss-style. But are there any of you who, like us, are captivated by the idea? If there's something that says "futuristic" more than being accosted by virtual Jackie Chan and Chris Tucker as they beg you to see Rush Hour 8: We Made Another One of These Movies, we haven't heard of it.

Analysts expect in-game ad spending to reach $1 billion

Analysts at Screen Digest estimate we'll be seeing a lot more virtual billboards as companies throw greater sums of money at in-game advertising. A lot more. The UK-based firm suggests that spending on in-game ads will push beyond a $1 billion by 2014, accounting for about one and a half percent of total global advertising dollars spent.

This is despite what the firm refers to as "short term softness" of in-game ad spending so far in 2009. In fact, the company believes in its gilded heart that virtual billboards are here to stay, as they help reach groups of people who are "increasingly hard to reach via other media." So, listen rookie, those bullets the enemy are using are very real, so keep your head down behind that fallen Pepsi billboard over there and bring me a soda.

IGA releases promo vid, claims 36% of gamers seek info from game ads


In-game advertising: sometimes we begrudgingly tolerate it, sometimes we hate it. Like it or not, IGA Worldwide claims that 36 percent of gamers exposed to advertising within games "bought or requested information of a product after seeing an in-game ad." And IGA would know, considering the company has partnership deals inked with EA as well as with Sony.

Additionally, the company notes that 90 percent of the folks exposed to in-game ads "recalled brands they had been exposed to" -- maybe that's where we get this hankering to snowboard through Target and blast through the Comcast Center? Check out the full IGA promo after the break for more exciting statistics on ... well ... you.

[Via VG247]

Continued →

Ken Levine keynoting first MIT 'Business in Gaming' conference


Focusing on riveting hot-button issues like "digital distribution, marketing, and in-game advertising," the MIT Sloan School of Management is kicking off its first ever "Business in Gaming " Conference (BiG) with BioShock magnate Ken Levine as inaugural keynote speaker.

We'll be there, Big Daddy statues and permanent markers in tow, and when we're not ogling KennyL we'll likely check out the panel featuring ex-Boston Red Soxer Curt Schilling of 38 Studios speaking about MMO business models. Hey, maybe he'll talk about that game his company's been making for three years! Code-named Copernicus? No? You don't remember that one? Yeah, neither do we.

IGA up for sale amidst recession woes


Thanks to an ad market in turmoil as a result of the economic recession, in-game advertising company IGA has put itself up for sale. According to VentureBeat, the company is hoping to close a new round of funding, but chairman Justin Townsend has acknowledged that an outright sale of the company may be necessary for the sake of its shareholders. Prospective bidders reportedly have until March 27 to make an offer. Townsend notes that he does not wish to accept "low ball offers" for the company. The news comes after the company lost $11 million in 2007 with revenues of $3 million.

With the economy rearing its ugly head all around the gaming industry, sprinkling our dreaded layoffs tag in its wake, we suppose it was only a matter of time before related industries were affected. Whether IGA's fate is reflective of the in-game advertising business as a whole remains to be seen. Maybe IGA should use its in-game ads to advertise other games. Seems like publishers aren't too shy about advertising those.

Double Fusion in-game ads expand with THQ, SEGA, Eidos and Midway


Double Fusion, a company specializing in in-game advertising, has expanded its PS3 portfolio by securing exclusive "advertising opportunities" with new publishers: THQ, SEGA, Eidos and Midway. This announcement offers the first details of Double Fusion's partnership with SCEA to provide ads in PS3 games since unveiling their plan in July.

"One only has to look at the recent videogame sales figures to realise that games are the one form of entertainment consumers don't want to live without," states Jonathan Epstein, president and CEO, Double Fusion. "We are pleased to partner with and provide incremental revenue opportunities to game publishers by offering advertisers a variety of hand-selected cross-genre games we know will be a hit with gamers and the marketers looking to reach them."

Double Fusion will be specifically targeting male consumers, ages 18-34 in their various campaigns. Next time you play a Sonic game, don't be surprised to see him wear some Nike shoes.

Obama billed $44.5K for in-game advertising

How much did it cost 2008 US Presidential Candidate Barack Obama to put ads inside of Burnout Paradise and other titles? According to a Federal Election Commission filing (via Gamespot), Obama's campaign sent $44,465.78 to Massive Incorporated to run in-game advertisements, from October 6 to November 3, in 18 separate titles. The real winner of these in-game ads, of course, was Tim the Paradise City Street Sweeper.

Comparatively, the campaign has spent a estimated total of $205 million on TV ads, about $4 to $5 million of which was for last night's 30-minute infomercial on CBS, NBC, MSNBC, Fox, BET, TV One and Univision. Fun statistic: The amount spent on TV ads was 455,555% higher than in-game advertisement. According to previous statements, Massive had approached the McCain campaign about doing a similar advertising deal, but they had passed on it.

Obama takes campaign to Burnout's Paradise City

It looks like US Presidential Nominee Barack Obama is seeking out the oft-overlooked "virtual maniac driver" voting bloc. Gamers who fire up their copy of Burnout Paradise for Xbox 360 will notice that some of the bilboards now feature an advertisement from Obama that says early voting has begun and features the URL of his campaign website.

Electronic Arts Director of Coroporate Communications told GigaOM, "I can confirm that the Obama campaign has paid for in-game advertising in Burnout," while also noting that they accept ads from "credible political candidates" and that such ads do not reflect the opinion of EA or its employees. As recently as yesterday, Obama is still citing video games in stump speech about underachieving kids.

[Thanks to everyone who sent this in!]

Google AdSense getting into games

Hot on the heels of YouTube getting into the game selling business, Google has released some details on an additional game-based revenue stream: In-game advertising via Google AdSense. Man, what's with these corporations, lately? It seems like all they care about is making larger and larger amounts of money.

We're poking fun, but this could end up being really good news for indie game developers looking to make some cash off of their efforts. As long as they stick to the non-obtrusive interstitials like in the video below the break, we're more than happy to help the little guys put some cash in their pockets.

Continued →

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