It's very clear that we're at a turning point in regard to game revenue strategies. At the turn of the new generation of consoles, we've seen many titles upping their launch price tag from £60 to £70, and years before that, it was common to see £50 games. With development costs increasing, many assume that we'll see a price jump again in the coming future, but could this be stopped by introducing new ways to generate revenue in-game, perhaps in the form of in-game advertisements or product placement?
To discuss this very topic, DesignRush's Ricardo C. Esteves talked with Iron Galaxy Studios' co-CEO Adam Boyes, where he gave his two cents on the whole matter.
When asked about in-game advertisements, Boyes stated, "In many ways, the AAA-gaming space is defined by the precedents that have been set over years of entertaining players. Premium gaming experiences need to be immersive. It's very difficult for gamers to tolerate interruptions to that experience for the sake of marketing or sales.
"Charging a price point for entry gives them the pure escape that they prefer. Gamers are willing to pay for a clean experience, much in the same way that movie fans will buy a Blu-Ray or subscribe to a premium streaming service like Netflix to keep the experience free of advertising breaks."
Following up on this, Boyes was asked about product placement and whether this could be an effective strategy instead. He replied, "Historically speaking, gamers are not at all likely to be marketed to when they are enjoying their experiences. We have seen Fortnite and Roblox serve as platforms where players can interact with brands, but they are the innovators and outliers. The other notable examples, including games that take place in a world where advertising is common.
"Sports games can inhabit locations or arenas where advertising is part of the scenery. Oftentimes, the best opportunity to advertise to gamers happens outside of the game.
"There is a huge market for selling them products that complement their lifestyle, whether it is peripherals for their hobby, furnishings for their game rooms, merchandise to celebrate their passions, or fashions to enable their self-expression as people who love to play games."
Essentially it seems as though while many of these methods are used in other types of games (like mobile titles or free-to-play experiences) or in other parts of entertainment, we should probably not expect to see in-game ads or product placements invading most AAA titles soon.