TV \ Console

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.

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.

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.

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.

The U.S. in-game advertising spending will increase from $295 million in 2007 to $650 million in 2012 according to projections from eMarketer. Video game software and hardware sales will increase to $21 billion in 2012, up from $15.8 billion in 2007.