Product placements in video games

Apparently, gamers can turn on a company for cramming their latest release full of product placements and ads. Still, those placements can generate quite a bit of coin for the programmers involved.

    "For example, in "L.A. Rush," the driving game released last month for PlayStation 2, Xbox, and PC, Midway signed on 40 partners, "although, with 337 miles of drivable roads, we could have done 400," says Allison. He wouldn't reveal what the deals netted Midway, but disclosed that, in general, "we take as little as $20,000 for a limited placement on up to close to $1 million. It just depends on how much exposure the company wants. There's a lot of negotiating going on."

    "... "When gamers pay $50 or $60 for a title and then feel that they're being barraged with ad content, especially if it feels like advertising to them, you get some very harsh reactions -- e-mails, calls to your PR or investor relations department, blogs," Allison notes. "It's the same thing as when moviegoers pay $10 to see a movie and then have to sit through 15 minutes of commercials before the movie starts. They don't react positively to that stuff. So you and your ad partners have to be crafty; you have to present it in a way that's going to appear cool."(Hollywood Reporter)

Thanks to Paul Kedrosky for the pointer.

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