In-game Advertising - Game Industry Reaction

Game Industry Reaction

Game publishers have mixed feelings about IGA. IGA can create new revenue streams; in some cases publishers’ profits have increased by an extra $1–2 per game unit sold (in addition to the typical $5–6 profit per unit). Some mobile phone games have replaced charging fees to gamers with IGA, and it is an important source of income for browser-based and other Internet games that do not feature micro-transactions or pay-to-play. Some publishers see IGA as a way to offset growing game development costs, while others believe IGA will allow them to experiment with gameplay by reducing the financial risks associated with game development.

However, not all publishers have found IGA successful. In 2008, Sony Corporation expressed doubts about advertisement-funded games because of limited advertiser dollars and gamers’ skepticism of IGA, although Sony completed an IGA deal 5 months later. However, in 2010, an Electronic Arts representative remarked, “We actually aren't getting much from ad revenue at all. The in-game advertisement business hasn't grown as fast as people expected it to.”

Another issue publishers and developers must deal with is integrating IGA into games without alienating or frustrating players. The general goal of IGA is to insert advertising that gets noticed while not interrupting the player's enjoyment of the game. Developers need some creative control of the IGA to ensure it fits the virtual setting, which can be an issue because advertisers usually want to project a certain image and protect their brand image. Game companies worry that they may be forced to change the game as requested by advertisers if IGA becomes a predominate revenue source, and face a possible backlash from consumers. In some games it may be easier to rely on revenue from sales of virtual goods, as they may provide a more reliable and greater stream of income than advertising while having the advantage of being directly incorporated into the game experience and being under the complete creative control of the developer.