Monthly Archives: February 2006

In-Game Ads: Quick Q&A with Mike McHale (Konami)

Michael McHale, Senior Producer at Konami, kindly answered some of my questions about his experience working with in-game advertisements.

Please describe how you made use of in-game advertising in Karaoke Revolution Party.

KRP for the Xbox includes technology from Massive, Inc. If the player is logged into Xbox Live, new ad-containing textures will stream into the game.

We made sure that the advertising spots appear in logical places in the game environment. We were very careful, so the ads are not constantly “in your face” and they integrate nicely with the background environment. We believe that it adds to the gameplay experience when the environment changes dynamically.

Did you reach out to advertisers who you thought would “fit” the game’s theme, or did you work with advertisers who reached out to you, or both? How did that affect the design and development process?

Massive’s sales team sold the ads. We retain approval over all ads before they appear in the game. The content must be appropriate for the audience (the game is rated E10+), and we expect the ad art assets to be high quality, and to fit the general art style of the game.

Did you experience any conflicts with your advertisers? How did you negotiate the process of integrating their ads into the game in a highly visible but tasteful way?

We created a guide that shows where the ads would be placed, with screenshots of the game environment. This hopefully helped the ad agencies. There was a set of ads that we felt did not meet our quality standards and did not fit the art style of the game, so we rejected them.

What surprised you most about the process of embedding advertisements into the game? Would you do anything differently?

There are currently two different types of advertisements you can run, and they each have limitations. Static ads are placed on the game disc and are visible whether you are online or offline. The issue with static ads is that you can’t track how many times they are viewed, and you can’t refresh the content, so the user sees the same ads for the life of the product. The ads have to be placed in the game months ahead of time before the game is released, so agencies can’t run ad campaigns that hit at a specific time, such as an ad for a movie release. The PlayStation 2 does not have a hard drive to store data, so static ads are your only option there.

Dynamic ads can be tracked and scheduled, but the player must be online while playing the game in order to see the ads. This works well for online multiplayer games, but not as well for single player games. I expect this issue to be worked out in the future, when dynamic ads will be stored and visible even when you are offline.

From the development side, the process of planning where the ads will go and integrating the ad-serving technology into the game takes time. Although the impact to our development schedule was minimal, we were still taking time that could have been spent elsewhere.

Looking back at the project, I don’t think we would have done anything differently, but it would have been nice to store the streaming ads locally on the Xbox. We hope we did a good job of integrating the ad content without being too intrusive. Advertisers and their agencies understand all too well that the end user can have a negative reaction to ads if they are not integrated into any form of media in the right way.

Mobile Game Companies Develop Architecture Standard

Via Gamasutra, news that a significant number of handset and mobile gaming companies have finally decided to establish an open architecture standard for cell phone games. The initiative’s participants include: Activision, Digital Chocolate, Electronic Arts, Konami, Microsoft, Nokia, Samsung, SK Telecom, Square Enix, Symbian, and Texas Instruments (among others).

Assuming that the aforementioned companies don’t get into a terminal squabble, this initiative represents a major milestone for the mobile game industry, which has been held back by the complexity of developing even simple games for a very wide variety of platforms, carriers, and operating systems. In today’s environment, it takes ~250 builds to publish just a single game in five languages, worldwide. (I’ve heard numbers as high as 450.) Each build may only cost ~$2,500, but that doesn’t include the costly logistical headaches associated with having so many SKUs.

There are 200M cell phones in the US — over twice the number of PCs, but still just a small fraction of the global cell phone total (China alone boasts 300M mobile subscribers). Global cell phone game revenue predictions vary widely, but many settle in at around $8.5B in 2010. A truly successful open standard could raise that number substantially.

Articles of Interest

Game Marketing Conference

The speaker list for the Game Marketing Conference was just published. It takes place from March 8-9 in San Francisco. I’ll be speaking on a panel entitled: “Opening Up the Shop: Blogs, Forums and Developers”. Not sure who else is on my panel, but the speaker list looks pretty decent in general.

If you’re planning to attend the conference, let me know and maybe we can meet up!

Articles of Interest

  • Study demonstrates improved multi-tasking, problem-solving in gamers; suggests long-term cognitive benefits.
  • On average, 20% of consumers who download a game via Xbox Live ultimately purchase it. (Geometry Wars tops the scale with 36% conversion; the least popular games still reach 10%).
  • Atari is on the verge of bankrupcy (again).
  • Half Life 2 expansion packs to be distributed as episodic content.

“The Continued Growth of Gaming”

I just sat in on the “Continued Growth of Gaming” panel at the MBA Media and Entertainment Conference in New York. Moderator: Cyrus Beagley (Engagement Manager, McKinsey Entertainment Practice). Speakers on the panel: Greg Costikyan (Founder, Manifesto Games), Chris Di Cesare (Director of Marketing, Xbox), Nique Fajors (VP of Brand Management, Atari), Frederic Markus (President, eRelevant Games), Joseph Varet (Sr. Director of Biz Dev & Strategy, MTV Networks). I managed to catch most of what was said, except in the case of Greg Costikyan, who speaks two to three times faster than most normal human beings.

Topics discussed: What makes a franchise successful, MTV’s role in the video game industry, innovation, the attractiveness of various game markets, and some questions for Microsoft about portables and shortages.

Read the full transcript here.

PC Games in Trouble

Warning: serious stream-of-consciousness ramble ahead.

Today I tried to install Stubbs the Zombie on my PC, but the installation failed. I have no idea why. Three weeks ago, I spent two hours trying to recover from a driver update gone awry. This weekend I hope to find time (hah!) to format my desktop’s hard drive, in hopes of eliminating some serious Windows-related performance slowdown issues. Why am I writing all this? Because I think it helps explain why the AAA PC game market is shrinking, despite a recent surge in PC sales.

I’ve always loved PC games ever since I played Space Quest 1. I still think the PC is a superior gaming platform. The problem is, that’s just not enough anymore. PCs are finicky, bulky creatures. Consoles are (mostly) stable — pop in a game, and you know it’ll work. Much more importantly, consoles only cost a few hundred dollars. If you want to play the latest AAA PC games (as they were intended to be played), you need to spend at least a thousand dollars every few years in order to keep your hardware up to date. Unfortunately for the majority of Americans, that’s a serious problem. Given the reliabiliity and cost issues, as well as the fact that consoles are now amazingly powerful machines, I just don’t see great hope for the PC.

On the other hand, the rise of MMOGs does seem to help counteract PC game market shrinkage. I find it hard to imagine playing social games without a keyboard, and there aren’t (currently) enough consoles connected online to challenge PCs for MMO dominance. It’s also still much easier to facilitate user-created content on the PC than it is on a console, and I firmly believe in the revenue-generating power of user-created content. Counter-Strike isn’t the most popular online FPS of all time for nothing! (Read here about the positive effect CS had on Half-Life sales.) And Microsoft’s commitment to the viability of the PC as a gaming platform certainly helps. Maybe these factors (among others) will serve to permanently preserve the health of the PC gaming market. As an avid PC gamer, I’d like to think so. But I won’t hold my breath.

PS. This post is US-specific. I doubt that the PC gaming market in South Korea will slump anytime soon!

Update: Forgot to emphasize — I’m talking about AAA games here, not casual games.

Articles of Interest

Market to Women, Already!

I almost missed a great letter to the editor that appeared in Gamasutra two weeks ago. The writer takes Kristen McDonnell to task for perpetuating the stereotype that “typically, women in general like puzzle, card, and word games. Some quotes from the rebuttal:

News flash: a lot of women enjoy the hell out of Stephen King, Joss Whedon, Saturday Night Live and MXC (which, due to its puzzle-related content, should be removed immediately from Spike TV and be re-broadcast fulltime on WE and Oxygen). And: Men don’t all flock instantly to the same games or get the same experience out of a game, so why should women? Finally: Please, please, please call off your quest to develop the single game genre to lure in some marketing department’s perceived ideal, a perpetual girl-woman that has never matured beyond a morbid, society-pressured fascination with pink nailpolish, Barbie, and shoes.

I couldn’t agree more. As Alice (of Wonderland) once pointed out, games have been marketed almost exclusively towards men for 25 years. You think that might have some long-term consequences?

I don’t buy the notion that women can’t become avid consumers of AAA titles. Women just need to be enticed into console games in general. At least one study has found that once women get into AAA games via any given genre, they become likely to branch out into other genres, including competitive genres.

I’m not suggesting that marketing is solely to blame for the state of things. There is, for example, the issue of female character hyper-sexualization in many games. Some argue that male game characters are equally extreme in their comeliness, so why should it matter? I think there’s one key distinction. Try the following thought experiment. Imagine a game in which all the female characters are very attractive, but not in a hyper-fictional manner. Now imagine the male characters — equally attractive, but with one notable “feature” — a huge bulge in their pants. The very thought makes me laugh, but I suspect that many men would be slightly repelled by such a game. Who knows how many women fail to become hardcore gamers because, consciously or subconsciously, they dislike staring at giant tits for hours on end? (BTW, I recognize that there are exceptions. Lara Croft was appreciated by many women, despite her “endowment”. But Lara Croft also represented strength and independence.)

Anyway, I’m not unique in calling for a concerted, long-term effort by console makers, publishers, and developers to market more towards women. But I think the call is worth repeating. This isn’t a charity case or a politically-correct social cause. We’re talking about billions of dollars in potential industry revenue being squandered. The Tycoon in me just can’t stand that.  ðŸ˜‰

PS. Before someone tries to play gotcha: yes, I know that women do indeed represent the majority of puzzle game players. This doesn’t change the fact that they could be enticed to play other games…

Articles of Interest