Yahoo Games announced on Thursday that it will expand into ad-supported online games by the end of the year, a move not without its controversy.
Under the partnership, Double Fusion and NeoEdge will sell and integrate video ads before, during, and after a game, which is downloaded from Yahoo Games. NeoEdge also is providing technology that will enable Yahoo to insert ads into its game library without requiring the game source code.
Yahoo, however, still plans to retain the ability for users to continue receiving paid game downloads, sans advertising appearing on the games.
That flexibility may be key in satisfying players who may not necessary want ads tucked into a shooter game or a jam session, nor ads scrolling by before or after a game. Nonetheless, Yankee Group Research projects worldwide in-game advertising to soar to $971.3 million by 2011 from $77.7 million in 2006.