Gaming

Microsoft has gone Hollywood. Or to be more specific, it has hired veteran producer Peter Safran to create video content for the download section of its Xbox Live platform. The goal is to jump-start sluggish video consumption among Xbox Live subscribers, so don't be surprised if the content mirrors the games' themes -- gun play, competition, mayhem. You know, all a young man's favorites.

Paramount recently became the second studio (after Warner Brothers) to pursue video game publisher ambitions. Initially, Paramount will focus on casual and mobile games, which will be titles with lower development costs and shorter development cycles. The studio will be well-positioned to take advantage of its stock of intellectual property and access to star talent.

Advertisers are eager to embrace mobile initiatives. They're excited about gaming, they like social networking, and they're crazy about interactivity. AOL's new mobile-web gaming site may help bring these all together. The site will provide Cellufun games that require no payment or download, and AOL's newly acquired Third Screen Media will make a little money by placing and providing mobile banners.

Fusing user-friendly ads with interactive entertainment has been a consistent challenge in the gaming world. Double Fusion and Gearbox Software have entered an interactive advertising partnership. Double Fusion, a game advertising network, will provide Gearbox, a gaming company, with the technology it needs to support interactive ads in soon-to-be released Gearbox games.

Recent analysis of Dynamic Logic's MarketNorm database revealed that, compared with younger women, women aged 45 and over were more likely to respond to consumer product ads featured on gaming sites. According to Millward Brown, over eight million women aged 45 and over access the Internet to play online games.

In a GameDaily exclusive, Jon Epstein, Chief Executive of in-game advertising firm Double Fusion, talks about lessons learned in in-game ads, the growth of the market, and how the industry can help push in-game ads forward.

Using entertainment via interactive marketing is a great way to get attention, create excitement and buzz, and connect with consumers. Smart marketers are using interactive media to blur the lines between traditional advertising and entertainment, engaging consumers with brands at a deeper level. Consumers understand they are being marketed to on Internet sites, but if their online brand experiences are memorable ones, they are likely to have a positive response.

When 90 percent of consumers agree on anything, it probably merits reporting. In this case, it's casual gamers telling Real Networks last month that they'd be glad to watch videos ads -- both before the games and during breaks -- if that's what allows them to play the games free. Copywriters know that "free" is the most powerful word in advertising. Apparently it's just as effective for getting people to watch ads in the first place.

Sony is opening up its in-game advertising platform -- likely providing a boost to the already-burgeoning $400 million in-game-ad market and sparking a battle among the three key players who sell these ads. The maker of the PlayStation3 system will offer an open platform, meaning in-game-ad-serving companies Double Fusion, IGA and Google-owned AdScape all will be able to sell ads in games that run on PS3.

Research company Interpret has released some pretty impressive numbers regarding casual gaming. Some 145 million people in the U.S. played casual games over the last year. That's 48 percent of the country's population. A very big audience that accounts for the in-game ad influx.