
Why in-game advertising?
- The harsh economics of game development and publishing: despite more people than ever playing games, in the past five years alone almost 100 game developers and publishers have gone out of business.
- It now costs more than ever to make a great game. A typical AAA-quality multi-platform next-generation release with blockbuster graphics and audio production, compelling storyline and strong multiplayer offering will cost upwards of $15 million to develop. For the biggest titles, which often include licensing costs and huge global marketing campaign, the total costs can exceed $30 million.
- At the same time, margins for developers and publishers are being continuously squeezed by price competition between retailers, not to mention piracy, shared games and used game sales.
- And yet even with the price increase for the newest consoles, games are actually cheaper today than they were over a decade ago. In the early 1990’s, gamers were paying an average of $60 with special releases costing up to $80. Had game prices risen in line with inflation like most other consumer goods, we would be paying an average of $90 per title today.
