Execs question in-game advertising

More and more companies are starting to integrate in-game ads into their games, and recent examples include Guitar Hero III, Skate, and Enemy Territory: Quake Wars. Some publishers, such as Splash Damage, claim it's a necessary evil to combat ongoing server and maintenance costs, whereas others see it as another way to recoup the ever-increasing costs of putting out a next-generation game.

A report last year from market-research firm Parks Associates predicted that in-game advertising would leap from $55 million in 2006 to $800 million by 2012.

But some of gaming's top dogs are unsure that the revenue model is the way forward, as reported by the Financial Times. The comments stem from debates held during last week's World Economic Forum, wherein ad agencies said that they thought 2008 would be the breakthrough year for ads in games, mobile phones, and networking Web sites such as Facebook.

Sony's Sir Howard Stringer told the newspaper, "The [supposed] solution to everything at the moment in the digital space is ad supported. While advertisers are happy to talk that up, there is a limit to the amount of money available."

His concerns were echoed by Activision Blizzard CEO Bobby Kotick. He said, "It's early days. I wouldn't go in that direction myself."

Stringer added that he was well aware that "young people don't like advertising very much."