Sunday, April 29, 2007

PC Game Study Part 3

Revenue Streams

Usually the revenue streams of PC game industry are from retail sales, game subscriptions and online play revenues. And now there is a new stream of revenue emerging, which is In-Game advertising.

What is In-Game Advertising (IGA)?

In-Game Advertising (IGA) refers to the use of computer and video games as a medium in which to deliver advertising. (Wikipedia)

2005 spending on in-game advertising was USD$56 million, and this figure is estimated to grow to $1.8 billion by 2010, according to Massive Incorporated, although Yankee Group gives a lower estimate at $732 million. In-game advertising allows developers to offset growing development costs and to take more risks in game play.

Some advertisers see in-game advertising as a key to target the male 18-34 demographic, who are increasingly neglecting television in favor of computer and video games. Still others see in-game advertising as a way to reach into casual games. For instance, through NeoEdge Networks and titles like Diner Dash, and target a predominately female demographic, who are frequently harder to reach and impact.


Future of PC Game:

I would like to see in the future, PC Game will be used not only for playing games, but also will be used in various fields, such as educations. PC game can be developed as a useful tool for people to learn, practice and play.

1 comment:

Peony Lai said...

Well, as some of us have mentioned in our blogs, the next generation of game consoles are equipped with internet access, and digital convergence might eventually allow us to use the game console like a PC, what do you think about PC games? Do you think it will be emerged with the console-based games?

Anyway, I think some schools are already using PC games for education purpose, but sorry, I don't have the source right now. In fact, I remember when I was studying in Hong Kong, a history-based RPG game was a great hit, and students actually learned a lot about chinese history through that game. Perhaps this interactive learning is way way more effective than the textbooks.