In-game advertising will ruin the video game industry

As the cost of developing video games rises, developers are forced to find new ways to increase revenue. And although sales are still a major piece of that pie, advertising is quickly becoming the key to the future. But unfortunately, I just don't see how any of us would benefit.

According to Sony, it will introduce dynamic in-game advertising to its titles in an attempt "to bolster the already rapidly growing worldwide in-game advertising industry, which is expected to grow 1,150 percent to $971.3 million between 2006 and 2011 according to the Yankee Group."

No word was given regarding what titles would be included in that deal, but anyone with half a brain knows that just about every single title you want to play in the foreseeable future will feature some form of dynamic in-game advertising. And to make matters worse, some people in the industry thinks it's a good move.

"The PS3 platform is primed to leverage the high growth potential of the in-game advertising market," said Phil Rosenberg, Senior Vice President, SCEA. "Ads that are organic to the environment not only benefit developers and advertisers, but also create a richer experience for gamers."

As much as I disagree with Rosenberg and his company, I'm wondering why it's changing its tune so soon after its own CEO said that in-game advertising isn't good for the industry.

At the World Economic Forum, Sony Group CEO Howard Stringer said he doesn't think in-game advertising will really solve monetary gaming issues and although some want us to believe that it might work, there's currently no indication that anything coming down the pike in the next few years will actually prove that notion.

"The [supposed] solution to everything at the moment in the digital space is ad-supported," Stringer said in an interview with the Financial Times. "While advertisers are happy to talk that up, there is a limit to the amount of money available."

And although he believed that business models were changing in favor of in-game advertising, Stringer (correctly) told the reporter that "young people don't like advertising very much."

So why the change of heart? If just five months ago, in-game advertising was wrong for all parties involved and the company's chief believed it wasn't all it's cracked up to be, why has Sony suddenly decided to do the exact opposite of what it claimed?

Surely the answer is cash, but Stringer's opposition went far beyond the notion of money. Stringer seemed convinced that in-game advertising wouldn't behoove his company and made it quite clear that he thought it was a bad move for any company to make.

Of course, I agree with Stringer. In-game advertising not only ruins the experience of playing games, but it makes for a title that "sells out."

Think about it -- how many times have you played through Guitar Hero III and the entire Tony Hawk franchise wondering where the developers went wrong? Was it really necessary to drop the name of another product? Did we really need that extra banner behind the artist's head?

Of course the answer is no, but we're still being annoyed with in-game advertising for no real reason. Sony wants us to believe that we will benefit from it because it'll not only provide us with knowledge on a slew of new products, it'll increase developer revenue, helping create better games.

Although its justification may sound rational at first, what if it's wrong? What if people say they don't want to play games with too much advertising and show that by not buying those titles at the store? What if the vast majority of people see through the advertising rhetoric and view it as it really is: a ploy to line the pockets of execs? What if it all backfires and the video game industry is shaken by the ridiculous use of advertising?

Sure, these may be "what if's", but I've yet to find people who actually like in-game advertising and know too many folks who are wary of what it could mean to beauty and value of in-game environments. Suffice it to say that in-game advertising may work for the developers, but there's currently no indication that it'll work for us.

And yet, advertising in video games is quickly becoming the next frontier in the industry and not even the gamers can stop the onslaught. But if it continues down this path and we do become inundated with advertising that detracts from the experience of playing a game, the effect could have major ramifications for all of us. And I, for one, don't want to see that happen.

For more on what Don is up to, follow him on Twitter by clicking here!

[TheGearbox]

I agree. If someone is looking at what will be the down fall of gaming it's already right in front of us, in game advertising. Have you seen the videos for EA's NCAA Football 09 yet? When your in th middle of the game and calling an audible, you'll notice that they so kindly inserted a Coke Zero ad to go with your audible dialog box. It one thing to have realistic advertisements that don't deter from the game environment, but it's another to have sponsored screens and dialogs and to present that at no realistic values in the game. All of this at the standard $60 price tag for the game. This will ruin gaming, for the sheep will wake up if you keep nudging them.

[dwr50]

Thanks for the info. I won't be buying anything from EA.

[Lerianis]

I have to agree with TheGearbox. Things like this should not be included for games that cost $60 dollars a pop.
They should only be included in free version games, where the advertisements are paying for your gaming session (I don't mind those on GameTap's game player).

[GalvatronType_R]

Generally, I don't like in game ads but there are certain games that justify them. For instance, if I am tearing around Laguna Seca in Gran Turismo, you best be believing that those Dunlop Tires, Mobil 1, or Mazda ads belong there. If I'm tearing down a slope in a snowboarding game, the Burton, North Face, and Oakley ads have a place in that game too.

[Renegade Knight]

Agreed that they can fit the environment. Not agreed that they will resist the temptation to slip in moronic adds. I especially don't see any real benefit to the gamer. What do they get out of it?

[Renegade Knight]

Agreed that they can fit the environment. Not agreed that they will resist the temptation to slip in moronic adds. I especially don't see any real benefit to the gamer. What do they get out of it?

[mcooper13]

Nobody likes advertising - anywhere. Yet it exists everywhere and life goes on. It will continue to grow in games until the returns diminish and then the number of ads will stabilize. Get used to it. Ads are the residue of free enterprise.

[tommykirchmeier]

They should release two versions of a video game. One costs $15 and has advertising, the second costs $60+ and see which ones get purchased. While I don't necessarily enjoy advertising, I would probably buy the $15 game.

[Renegade Knight]

That idea would at least have the gamers getting some benefit out of the whole advertising notion.

[Renegade Knight]

That idea would at least have the gamers getting some benefit out of the whole advertising notion.

[FpLiOnYkD]

As I'm reading this story, there are two ads on the right side. Why is it acceptable here, but not in a game? Is it purely because I didn't pay anything for the CNET content? Let's get real. To mcooper13's point, advertising is a fact of life. We'll eventually get to a point where we don't even notice it. Better yet, I think the game developers could some very clever things with ads since they are appearing in interactive environments. Many shooters have completely destructible environments. Wouldn't you love to be able to use a rocket launcher on a Hannah Montana billboard?

[TheGearbox]

The advertising on the Internet and TV for that matter brings it to me for free or at a discount. The advertising in games is an inconvenience and only goes to the pockets of the devs. There is a big difference here. I pay a premium for XM radio to get it advertisement free, the same goes for premium movie channels, etc. I pay a premium for games, and watch these companies record billion dollar profits while they release half done mediocre games flooded with advertising. This is only in place to take advantage of the average nitwit consumer. We can say that that's just how the world works, but then we might as well file in with the rest of the sheep.

[FpLiOnYkD]

Well as far as TV goes, advertising completely interrupts your experience. You don't have that in games (at least I've not seen it). If the developers feel they can make money at it, why wouldn't they? The last I checked the games companies are not in this just for fun. As for half done mediocre games, the easiest way around that is, don't buy them. I rarely purchase a game without reading a review or playing a demo of it--I'm sure you do the same. If the company continues to release only mediocre games, no amount of advertising will save them from their imminent failure.

[techmulticast]

There are alot of creative way to put 'ads' into game, The model for advertising in game will likely be very different from TV or Website etc....

Imagine U are playing Gear of War XXX. And the solution to destory the Locust new weapon, is to search for a 'old' bootle of coke or head-and-shoulder from a ancient warehouse.......... that ads become part of the game, right from the start.

Or if U are going thru games, if U locate some 'special' item, U get to print it out a coupon to exchange for some game related souvenir (imagine getting a Marcus Fenix action figure) when U go to Best Buy to purcahse another game etc.....while stock last of course.....words will spread thru forum, chat room etc on how to locate those item etc.

However by using that model, it will likely means the company, interested to advertise, have to partner the developer right from the start. They will have to take the risk that the game might be a flop.... Well maybe real-time advertising is possible in the future due to the console being connected to the Internet....but they really really need to be very careful.....not to spoil the gaming experience or kill the goose that lay the gold eggs.

BTW, most of the time advertisement are the infor provided to user that they do not need......But imagine infor provided is what we are searching for..... it will become useful and welcomed infor (It is like searching thru google/amazon for a product). Hence it is true that most of us dislike advertisement (ads). It really depend on how they apply it. Juz think back on the Nike shoe wore by Marty McFly in "Back to Future". I felt it is quite funny and not that out of place. Cheers

[DarkHawke]

I think we're all in agreement here: context is key. If the ads are where ads would be in real life (billboards, on the sides of buses, storefront logos, etc.), there's no problem, and in fact adds to the verisimilitude. If they're like the freakin' flashing banner ads that are the bane of all Christendom, folks will swiftly vote with their wallets...and blog about it so everyone's up to speed! To say that an influx of inappropriate advertising in video game will spell the end of the industry is to engage in the type of hyperbole that, well, Mr. Reisinger normally does! Might give 'em a big ol' shock, but when console video games started to outsell Holly-weird movie premieres, it signified an industry that's here to stay, ill-conceived "revenue enhancements" or no.

[RRosal]

Cnet must be running out of good things to write if it has to include this enlightening piece from Don. I'm sorry, but advertising is prevalent in all aspects of our lives-be it in movies, television, or surfing the Internet. Sony is just going with this to add more revenue for themselves, just like any other smart corporation would do. And hate to say this, but Don, I see advertisements on here along with your piece so what's your point? This is just scraping the bottom of the barrel for something to write about and quite frankly I wish I could get the 3-4 minutes of my life reading this given back to me.

[quest78]

It depends on how its implemented. If its just something like name brand in-game objects, like a Spalding basketball in NBA Live, or real car parts like they had in the latest Midnight Club, it can work, making the game more immersive and "real", and would be a LOT better than smacking you in the face with in-game billboards and banners everywhere. Keep it subtle, and it will be better for all those involved. If its over done, not only will people get pissed off, but i question how effective it would be for the advertisers themselves.

[kylebuttermore]

they shouldn't be in games that are already expensive, but as long as it doesn't get in the way i don't care, like if its just on a billboard or a sign or something. i wouldn't buy it if it took up any game time like played ads before the game or in the middle

[wil1012]

I actually think depending on the game, it will make it more realistic. If your playing Rainbox Six for example, when you on the streets and you see a billboard with a real movie coming out soon, real products, etc. it make it more realistic!

[jonathan_a]

In-game advertisements do not bother me at all, as long as it blends with the game! For example, i'm driving a car in a game and i see ads on billboards. In real life, ads are on billboards so what's so bad about doing the same in a game?

Or even in a futuristic game like Hellgate: London. When walking in the subways, there's posters hanging on the walls with advertisements! See? They blended ads into the decor!

But whatever happens, I better not see fantasy games with advertisements like that!!! LOL... imagine walking out of a forest and into a castle, and there's a huge "COCA COLA" flag on the castle... now that would be extremely lame!

[jonathan_a]

In-game advertisements do not bother me at all, as long as it blends with the game! For example, i'm driving a car in a game and i see ads on billboards. In real life, ads are on billboards so what's so bad about doing the same in a game?

Or even in a futuristic game like Hellgate: London. When walking in the subways, there's posters hanging on the walls with advertisements! See? They blended ads into the decor!

But whatever happens, I better not see fantasy games with advertisements like that!!! LOL... imagine walking out of a forest and into a castle, and there's a huge "COCA COLA" flag on the castle... now that would be extremely lame!

[moshelinho]

whats wrong with sony???? yesterday the story on Qore and now this????? they have lost their minds in the lust for more money....

i say advertising is wrong..because u pay $50 for a game and u get to see advertisements??? so thats like $10 for the game and $40 for the advertisements..because then i guess there wont be just 1 or 2 ads but many many more....probably like those we get when we play demos. everytime u quit ur forced to see the advertisement.

[dwr50]

I don't think the ads will ruin gaming only the PS3. I hope Sony looses millions of $ over this crap.

[cisasteelersfan]

Great article. and this is a bunch of BS

[aztec92154]

Here's what ad's in games leads to. Level design will not focus on gamers, and instead focus on creative ways of presenting their advertisements If you ask for $5 games which are full of advertisements, the advertisers have a much greater say in where their advertisers go. They are after all funding the project. Level designers will switch the focus from completely building a game that is fun to building a game that is fun... BUT mostly shows a lot of in-game advertising. They are the ones, after all, who are paying the bills.

Another great article by Don Reisinger.

[Chimlim]

Excellent article. The thought of in game ads is absolutely sickening.

Video games used to be one of the few forms of entertainment where ads weren't shoved down your throat every two seconds. Thanks to Sony, it looks like that is going to change. I want to feel like I'm getting into the world of a video games, and advertisements will totally ruin that experience.

Sony is lying when they say it creates a richer environment for gamers. There is no logical reasoning as to why ads in video games would make it better. The truth is, it is going to make the game feel "cheap"

However, with in game ads that would mean Sony could charge less for their games right? Surely they wouldn't charge a full $60 for a game littered with ads, right?

[ElmoKajaky]

I spend thousands of dollars a year on video games, and I can tell you I'll avoid all games with in-game advertising. I play games to avoid the spam of the modern world, not to experience yet another flavor of spam. Next idea!