Sony Computer Entertainment today announced the introduction of dynamic in-game advertising for the PlayStation 3.

Marketers interested in placing advertisements in games for PS3 or publishers with available in-game space for advertisements are able to engage through advertisement distribution partners, with IGA Worldwide selected as PS3’s first partner. This partnership will serve to bolster the already rapidly growing worldwide in-game advertising industry, which is expected to grow 1,150 percent to US$971.3 million between 2006 and 2011.
“The PS3 platform is primed to leverage the high growth potential of the in-game advertising market,” said Phil Rosenberg, Senior Vice President, Sony Computer Entertainment America. “Ads that are organic to the environment not only benefit developers and advertisers, but also create a richer experience for gamers.” “PlayStation 3 is undoubtedly the prime opportunity for the in-game advertising industry,” said Justin Townsend, CEO, IGA Worldwide.
“Through this partnership with Sony Computer Entertainment, IGA can provide advertisers with a large and valuable global user base of 16-35 year old consumers with disposable income. With our standardized awareness-building advertising formats being delivered directly into people’s living rooms while they play, there are great opportunities for advertisers looking to engage through an entertainment medium outside of the traditional TV spot.”
Does this mean we can expect the PlayStation 3 version of BioShock to replace The Circus of Values with K-Mart? Or GTA IV's Cluckin' Bell with Burger King? Somehow it's just better when video games parody vast corporate entities, rather than becoming yet another delivery medium for advertising.

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As long as it's not out of control, I'm good for it. Hopefully they will update Burnout Paradise's in-game ads aswell... I'm sick of the compusa ads, it needs to be updated with newer ads.

Too all PS3 owners, I'm sorry to hear that.

Your game designers are now the advertiser's bitches.

At least it will help in offsetting the costs required to make a PS3 game, though I personally am NOT a fan of ingame ads

hrm.. i dno, my feeling towards this is the same as my feeling towards product placement in movies/tv shows

In games like Gran Turismo where instead of having fake ads for fictional rpoducts they make real ads for real products then i don't mind.

 There has been in-game advertising for PC too and it hasn't bothered the games one bit, since they carefully moniter which adds are brought into the game.  They make sure that those adds fit in perfectly with the game.  You won't find viagra commercials in a WWII game for example, but identical advertising as they had in that time.  There's nothing wrong with that, it could even increase the realism of some games.

 Fanboys, just ignore them.

Unfortunately its needed. HD games need more revenue streams added to the business model in order to ensure profitability.

I'd rather have advertisers as developers as opposed to retarded developers.