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EA CEO says in-game ad estimates "widly optimistic"

Posted on December 5th, 2007 at 04:24 EDT

According to an interview with EA CEO John Riccitiello, analysts predicting in-game advertising as the next booming industry are a little too hopeful. Riccitiello does agree that this facet of the video game market will eventually flourish, but he believes it will be a long time before it gets to the level of expectations that has been created.

"You can't be as bullish as analysts are on in-game advertising and be sane," he said. "In-game ad expectations are wildly high."

Riccitiello's comments come in response to industry insiders such as Bernie Stolar, head of Google's AdSense for games, who recently made a bold prediction that in-game advertising would become a USD billion dollar industry by 2010. Other analysts at the technology research firm Yankee Group, also have speculated the industry of in-game advertising to grow to USD 971 million dollars by 2011.

At the moment, in-game ads account for USD 30 million-a-year business for EA, Riccitiello claims, which is just a tiny fraction of the company's USD 3.1 billion in sales in fiscal 2007. He also claims that EA has been slow to implement more in-game advertising due to the difficulty it has take to develop and program games for the PlayStation 3 and Xbox 360, claiming "the industry needs to 'execute' better to create sufficient room to place ads within games."

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What are your thoughts?
posted 4:30am EST - December 5th, 2007
1

I say NO!! for in-game advertising!!

posted 4:35am EST - December 5th, 2007
2

This could be a way of the future for gaming/advertising. I may just be thinking like a 5th grader (or less), but can't some sort of "patch" create/change ads in the games when you play? eg. a game like the GTA series with billboards installed all over town have advertisements and changes at times as you come back to the area once again??? I don't know, could that be possible?

posted 5:01am EST - December 5th, 2007
3

matrix it is possible since we are at the age where are consoles are always connected.  I for one am all about ingame adv. only if it suits the game.  ie i dont want to see coca cola in final fantasy, but it would be fine in say rainbow six vegas, also as long as its not everywhere.

posted 7:07am EST - December 5th, 2007
4

In game advertising will ruin games if it gets too excessive.

posted 7:55am EST - December 5th, 2007
5

EA wouldnt know innovation if it slapped them accros the face. This is going to be HUGE for the HOME service, and if implimented correctly could offset the costs of development. They just lost in general, and should just go away.

posted 8:12am EST - December 5th, 2007
6

the onlything EA  should be worried about is making good games that us Gamers can enjoy

posted 8:30am EST - December 5th, 2007
7

GTA has not been using real world advertisement in their games, they just don't use real world names...as the building MetALife in New York will be called "GetALife" in GTA IV, and btw...i pay money for my game, unless they make the games free then i don't want any dam adds in them!!

posted 9:50am EST - December 5th, 2007
8

psn id: gingo.... i'm not bothered about in game advertising as long as its suttle and doesn't ruin the gaming experience but i agree it wont be a huge industry that fast

posted 11:03am EST - December 5th, 2007
9

In-game advertising sucks. Everytime I see one I loose track of the actual game and what's going on. It's disturbing the gameplay.

posted 4:18pm EST - December 5th, 2007
10

In-game advertising will primarily be prevalent on sports games and some racing games.

posted 5:00pm EST - December 5th, 2007
11

poeple dont pay for freaking adds, if i pay $60 for a game there better not even be a mention of an advetisment.

posted 6:11pm EST - December 5th, 2007
12

@ MatrixSixaxis: Many games already implement this. If anyone remembers playing Counter Strike online, remember the random ads through the year? There were a bunch of subway ads there one day, and recently, there are now ads for The Orange Box. So ads do change, but as of right now I think this is done through patches.

posted 8:49pm EST - December 5th, 2007
13

It  would only be O.K. If  they  could use the extra money to cut the price of the game. Purhaps $19.99 a game.

posted 4:52am EST - December 6th, 2007
14

Ok, so ads do already exists in a collection of games. It may prevalent but I agree incentives would benefit both consumers and developers. New patches for the games should be free and just let the advertisers pay for the cost of the patches instead! Ergo, we all win! So long as we're not forced to watch an without being able to skip it!!! 8E

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