Are You Ready For The Future Of Gaming?

Thu, 09/20/2007 - 12:52 — James Mowery |

Gaming

Following the news of Ubisoft releasing a few select games for free with included advertising (and also closing it thereafter), it is making me wonder if this is the future of gaming? Would you prefer having access to games for free, but having advertisements included in those games as a result?

Pros of Ad Supported Games:

Game publishers potentially receive more revenue and a wider audience as a result of the games being free.
Possibly less stress on developers to hit set deadlines.
Developing add-on content could be more affordable and accessible for developers in the long-term.
Games will generate revenue for a longer period of time.
Smaller game developers and publishers could benefit heavily from this.

Cons of Advertisements In Games:

More focus on optimizing ads instead of game-play by developers, and as a result, less quality of game design.
Gamers could (and some will) be turned off by advertisements in games.
Certain genres of games would suffer eventually. (e.g., Grand Theft Auto would benefit, but Total War would suffer due to advertising not working well in a game like it)
Exclusivity deals with game advertising agencies could harm smaller companies from possibly competing. (e.g., Google signing a deal to provide Google Adsense only to the top 100 ranking websites would damage many other websites that wish to use that service as well.)
Advertisements could interfere with game-play.
Publishers could (still) over-charge (I believe game publishers are currently over-charging) game prices.
Developers could find malicious ways of spying on you and your documents on your computer to try and target advertisements at you (appealing to the advertising agencies and advertisers themselves); this would be a privacy concern for many people.

It is something to think about as the game industry adjusts to newer technology, and new methods to generate revenue. This is going to be a path that game publishers will be pushing for. The game industry has been on a significant rise lately and you could say it is exceeding expectations. It is more money in the bank for the people who develop and publish games.

There are problems with the idea of having advertising in games. A game like Madden really does work perfectly for in-game advertising, and the game already has it included. How does a company work in an Old Spice advertisement in a game like Call of Duty? How about working in advertisements in a game like Empire Earth or Total War? It would be very difficult, and completely ruin the atmosphere.

Disclaimer: I did modify this image, and it is for demonstration purposes only.
Advertising in games is still an area of game design that has been relatively untapped by game developers and publishers for quite awhile now. The whole scenario is really a double-edged sword, but it will happen; it already has become a part of the game industry.

Would you be willing to play games, at no cost to you, that displayed advertisements targeted to you? Let Tech In Demand know! Leave a comment and voice your opinion.

Update: 9/21/2007 @ 11:38 PM EST:

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Comments

Thu, 11/15/2007 - 13:34 — Tech In Demand » EA Could Be The Greatest Threat To The Game (not verified)

[...] The game industry

[...] The game industry needs competition to keep things moving forward for consumers. There will always be video games, and it is the greatest form of entertainment. Consumers in general are complete idiots, but hopefully some common sense can kick in if it gets to the point where we are paying $70 or more for games loaded with ads. [...]

Mon, 10/01/2007 - 05:54 — Are You Ready For The Future Of Gaming? « Gaming News (not verified)

[...] read more | digg story

[...] read more | digg story [...]

Sun, 09/30/2007 - 06:18 — The Future of Gaming? « Queens Internet Cafe San Juan (not verified)

[...] Tech In Demand has

[...] Tech In Demand has also posted an article about the pros and cons of releasing games for free with [...]

Mon, 09/24/2007 - 14:14 — James Mowery (not verified)

Someone did suggest that

Someone did suggest that matt. It is a great idea, and I'd prefer this over in-game advertisements. I'd prefer it only if it lowered the price of games though. If not, then why add it?

Mon, 09/24/2007 - 07:54 — matt (not verified)

dunno if someone already

dunno if someone already said it above, but maybe quick commercials could run during load times inbetween levels/scenes. this way it's not actually IN the game. just a thought. =)

Sun, 09/23/2007 - 05:37 — Ziv (not verified)

I think it's great. People

I think it's great. People like me, students, high school kids and other people who just don't feel like paying 60$ for a game it's an awesome thing. Just download the game and within two days you have a game that before it starts it tells you to eat more McDonalds to make you fatter! P.S. also companies could put ads for non-profit organizations for free once in a while, which is good exposure.

Sat, 09/22/2007 - 23:34 — James Mowery (not verified)

I apologize pagesix, but I'm

I apologize pagesix, but I'm no professional artist, and I didn't have hours in order to make a mockup. It was not meant to be a real-life example, and I think your the only person to take it that way. Also, when I was referring to advertisements in games, I did not take into account MMORPGs. For good reason as well: MMORPGs rely on a subscription to function, not a static one time payment (with a few exceptions). So it is irrelevant to this discussion. I will point out that The Matrix Online is a dying project. To be quite honest, a failure. So your example does not back up what you are saying. You provided a specific example for one game in a system that is completely different to what was in the discussion. All the advertising in the world isn't going to save a failing game. I don't even understand what your argument is though. Advertisements work well in The Matrix Online, a failing project? If that was it, then it isn't a compelling one unfortunately.

Sat, 09/22/2007 - 21:08 — pagesix1536 (not verified)

That's a stupid mockup btw.

That's a stupid mockup btw. It wouldn't be like that. There's already advertising in games. Take a look at what Sony Online Entertainment is doing with their games. The Matrix Online has advertisements in the game RIGHT NOW. There's McDonalds ads, Snickers, Intel, Jeep. And they're sometimes not just static images, could be videos. They typically show up on the billboards around the city inside the game. So it fits perfectly inside the environment of the game and isn't that big of a deal (well, except for the video ads that have sound, the sound gets annoying because it loops. If you stand next to the billboard long enough it gets really annoying.)

Sat, 09/22/2007 - 13:05 — James Mowery (not verified)

Zak, that is exactly what I

Zak, that is exactly what I fear as well. It is likely to happen as well. If they don't nail us on the cost for games, they might get us with add-on content, or even worse, a pay 2 play type system where you pay per hour, possibly like a subscription service? Imagine having to subscribe to EA Sports Platinum Package: Cost: $199.99 What You Get: 1 month of playing time with With all EA Sports Video Games $25 off your first purchase for additional content. Reduced advertisements. *Disclaimer: Early termination fees apply* ------- Had to add the disclaimer, because it wouldn't shock me to see something like that with the world we live in. The above is of course an extreme example, but for the future, it could happen. Anything is possible though.

Sat, 09/22/2007 - 11:05 — Zak (not verified)

Advertisements making games

Advertisements making games free? Maybe at first, but it will go the way of cable television. You paid money and got no adverts on your cable channels, now you get all the adverts in addition to paying all the money. I seriously doubt it would stay at some non-obnoxious level either. Just look at the progression of internet advertisements. Everything from popups and hoverovers that block your screen, set up to give people epileptic seizures. It already is frustrating when I cant skip past developers adverts, I cant imagine if I had to sit through adverts through Wal-Mart or Penis Enlargement Pills

Sat, 09/22/2007 - 07:16 — Turkish (not verified)

After reading, this seems to

After reading, this seems to be a very exaggerated example of what advertisers would do. Play Rainbow Six Vegas and you have Shoot Em Up posters through the hotel. I had not heard of the movie before it... researched it and got very excited about it. I can tell you with almost full certainty that companies like.. Blizzard for example... or even Total War wouldn't throw out random ad's all over the place and I can see NO reason why they would have floating ad's. That is a ridiculous mock up and really does not give a good reason to not allow advertising in the right genres and places through games.

Sat, 09/22/2007 - 06:59 — warner mcelveen (not verified)

hey great ideal....only

hey great ideal....only cigarette ads and eating though...smoking is fun to do when playing video games... I love to (cough, cough, cough...)smoke and eat when playing video games... nothing like a beer, a burger, and a game to make my day... please make consume more and more and more until my world explodes...

Sat, 09/22/2007 - 06:09 — Pascal (not verified)

For war games or fantasy

For war games or fantasy games, pretty easy to solve this problem, put the ads during the loading screens! Before you start a game in C&C3, while the map is loading, you get a Coca Cola ad or something. At the score board at the end of the game? But anyways I think ads in general are a bad thing, because the small guy can't buy them! So you just have big comp. advertising other big companies :(

Sat, 09/22/2007 - 04:33 — Mithun (not verified)

Very interesting article. My

Very interesting article. My company has been working on an in-game advertising solution for about 2 years now. Since we came from gaming backgrounds, playing many online multi-player games, we knew ad supported games were only a matter of time. The interesting part of our software is that it like uncleJ said, only loads a short 5-8 second flash ad only during loading screens or in between map changes. Very non-intrusive, and you're only looking at a progress bar during a load screen anyway. We are launching our stand alone client very shortly which will put ad's into games, and have 80% of the revenue from the ad's donated to the users charity of choice. It is also possible to claim any revenue you generate for yourself as well, but the amounts per user would be so small that we encourage everyone who uses our software to donate it to a cause. Please visit www.gamersforacause.com for more info.

Sat, 09/22/2007 - 02:31 — James W. Hofmann (not verified)

As someone gradually getting

As someone gradually getting together an ad-oriented site running Flash games, I feel that advertising should be a carefully considered part of the overall experience. Existing ads in games are mostly very poor - the ad-supported Farcry, for example, effectively punishes the player for death by making them watch the ad again. Why would you want to associate failure with Mcdonald's? On my own site, I've put up Project Wonderful ads. These ads can be bid on by anyone in an "infinite auction." The market - both for buyers and sellers - is currently mostly webcomic authors, and suffers somewhat from this lack of diversity, but I imagine that in the long term this system will have a beautiful outcome: buyers of ad space will look for spaces that produce the best results for them, and those buyers are simultaneously the ones that can interest the most people with an appopriate ad that doesn't make people upset.

Sat, 09/22/2007 - 01:43 — James Mowery (not verified)

Uncle J, I would love to see

Uncle J, I would love to see something like that as well; however, only IF it would lower the price of the game and promote add-on content. If they charge $60 and then put advertising in loading screens like you said, I would not be thrilled. Of course, consumers will still buy, so it doesn't really matter what I think with regards to that. I just think it would really be disappointing if they add advertising, and fail to make games better. If they fail to make them cheaper as well. Also, if they focus more on advertising instead of the game design. It could explode in popularity amongst game publishers, and they could abuse it. That is worst case scenario.

Sat, 09/22/2007 - 01:02 — Uncle J (not verified)

Nice article! I am firm

Nice article! I am firm believer/practitioner in user-centered design, with experience on marketing campaigns. I agree that this would stink, if this was implemented as old-fashioned interruption advertising. But marketing can be so much, much more. I would not mind seeing short video ads when starting the game.. "This game session sponsored by AT&T" (Not necessarily ingame)

Sat, 09/22/2007 - 00:32 — Brandon (not verified)

Im not opposed to ads in

Im not opposed to ads in games if done right. Games are becoming more costly to make, that affects consumers as well. Ads can be inserted seamlessly into a lot of games, especially modern and futuristic ones. I dont see it affecting gameplay even if they threw in a commerical before the game starts or heck while something is loading. If it benefits both parties in the end, why not.

Sat, 09/22/2007 - 00:12 — mellomutt (not verified)

When you consider movies

When you consider movies where you notice the advertising and it's not part of the story, the movie tends to be lackluster. e.g. I, Robot: rife with product placement, and the movie was such a dumbed-down realization of Asimov's stories that the only people who liked it are also those that voted for Bush the second time. And do you remember the marriage of Demolition Man with Taco Bell? Demo Man is sort of a cult classic, but if you watch it today, you'll find that many of the scenes will induce physical pain. Pure cheese. However, there's E.T.'s blatant propaganda for Reese's Pieces. But it worked. It didn't feel like they sold out. The movie takes place around Halloween and one of the protagonists is a kid. There's a damn good chance that if it wasn't Reese's Pieces, it was going to be Candy Corn or Good 'n Plenty. Some high fructose corn syrup item was going to be on-screen, and it was Reese that got a piece. I agree with most people here. If it's done right, it doesn't have to hurt the game. But for those games where advertisements are out of the question, what about a video ad that displays whent he game starts? We already have to pass thru several vid sequences when games load, but at least that way they'd keep their grubby little paws out of the game universe itself. There are precedents: does anyone remember Acrophobia? I loved that game, and it was free, but there was the inevitable ads that displayed between actual game play. Pogo.com does the same thing. Admittedly, their games aren't constructed to place you inside a fabricated universe, but the idea stands. And for the games where advertising will work inside the crafted world, there are going to be plenty of opportunities. Fans of modern sci-fi will be familiar with stores and hawkers that broadcast ads directly to your implants or there are holographic projections. If a game wants to envision a realistic urban (humanoid) environment set sometime in the future, advertising is going to be necessary, in one form or another.

Fri, 09/21/2007 - 23:59 — James Mowery (not verified)

It's only my opinion, it is

It's only my opinion, it is neither right nor wrong. Your opinion is well taken, and you might very well be right. Regardless of what I think though, the price of the dollar has taken a huge plunge, and everything is going to increase with price. So we very well will see $70 games and beyond.

Fri, 09/21/2007 - 23:47 — K'hast (not verified)

Everyone says games and

Everyone says games and systems are too expensive. Atari 2600 was $400 and the games were $70 each at one time. Pong players were also $400-$600 at one time, and you thought $50 for one game was expensive.

Fri, 09/21/2007 - 23:43 — Comrade Grrr (not verified)

This debate brought you by

This debate brought you by Carl's Jr. or The opposing army sponsored by Wal-Mart. I don't think I'd be in for that one. What if Halo or Gears of War or Mario games were plastered with ads? Mario has to rescue the princess from the evil clutches of the Hamburgler?! WTF? No thanks.

Fri, 09/21/2007 - 23:33 — James Mowery (not verified)

So forgive me if I don’t

So forgive me if I don’t have complaints about games sitting at the $59.99 mark. (Apart from the fact that it cost pennies to put said games on a disk….) That comment solves my whole possible argument :)

Fri, 09/21/2007 - 23:29 — anthony (not verified)

As far as the game pricing

As far as the game pricing issue goes.... I guess everyone forgets that when Mario Bros 3 was released for NES it was $99.99 (in Canada at least) and the majority of SNES games ran from $79.99+. So forgive me if I don't have complaints about games sitting at the $59.99 mark. (Apart from the fact that it cost pennies to put said games on a disk....)

Fri, 09/21/2007 - 23:20 — James Mowery (not verified)

I believe the price of games

I believe the price of games should be decreasing, not increasing. I also am confident that we have Electronic Arts to thank for $60 games.

Fri, 09/21/2007 - 23:18 — FrankieB (not verified)

I can't say whether or not I

I can't say whether or not I would be in the 'free' video game fan club, but I do like the idea that in game advertising can have an effect on the cost of a video game. With these new consoles coming out, and the price of games getting higher, there's no reason why some games can't have increased ad's and a lower price. If I had things my way though, I wouldn't increase the amount of advertising as it is now in games. I think any more would be too much.

Fri, 09/21/2007 - 23:08 — Are You Ready For The Future Of Gaming? (not verified)

[...] having access to games

[...] having access to games for free, but having advertisements included in those games as a result?read more | digg story Post a [...]

Fri, 09/21/2007 - 22:51 — kevin (not verified)

though this is about movies

though this is about movies not games, i think it sums up my feelings pretty accurately http://www.youtube.com/watch?v=F4wh_mc8hRE

Fri, 09/21/2007 - 22:51 — James Mowery (not verified)

That is exactly the problem

That is exactly the problem Ted, and that is hopefully what will not happen.

Fri, 09/21/2007 - 22:49 — Ted (not verified)

Ads in games really

Ads in games really shouldn't become the norm. They really do take you out of the experience, but in some games it could work. The best way would be to have the ads on billboards and signs in the game. However, some games don't have billboards and things like that and the ads would kill the game. Also I could see publishers taking it too far and next thing you know you're trying to change some options in the menus and an ad for something you'd never want appears.

Fri, 09/21/2007 - 13:18 — James Mowery (not verified)

That is certainly a

That is certainly a possibility, but if game publishers would allow it (or in other words, advertisers would throw millions at them), then they would go ahead with in-game advertisements. I know this is coming... first it will start with maybe a tiny banner on the top, games will start doing that, and then gamers will think: "Hey, that isn't that bad." Soon thereafter though, the advertisements will take up more and more space as advertisers want to get their message out. Sponsored music, great idea, but why do that, when you could throw in a 10 second video advertisement at the top of a video game, or have in-game billboards showing advertisements. I imagine Madden in the future having the billboard they show after every play almost (which I find annoying) will be loaded with advertisements in the future, and you might not be able to skip them. This is all only theoretical, but it seems the likely path to which they will take.

Fri, 09/21/2007 - 05:38 — Kate (not verified)

What about the potentially

What about the potentially massive market for running commercials or other sponsored music as part of the game? It would be less obtrusive than a logo in the corner...