Suttree.com: Casual Games, Social Software by Duncan Gough

The argument against product placement in games is that the ads will look out of place, especially in games that are sci-fi or fantasy based, which is a large proportion of them. However, it’s important to recognise that the sci-fi/fantasy themeing of so many games is an economic decision based on two factors - firstly, that the audience buying the games are adolescent males and secondly, that as the cost of making original games spirals, so does the cost of failure. Therefore, the market is flooded with sequels to successful games that appeal to a narrow audience using a popular theme.

Given that the question of product placement is in the spotlight, it would seem that despite the lack of original and refreshing content, the gaming audience is growing. As people are increasingly leaving traditional media, like television, behind, they are turning to the internet and games instead.

The problem for advertisers with these adolscent themes is that product placement is not an immersive gaming experience, causing players to resent their presence. Comparing games to television and the sci-fi/fantasy themed content where product placement doesn’t work highlights something different. These escapist games of science fiction and magical realism are reminiscent of television in the 1950s before it grew up. Television since the 1990’s has increasingly done that, blurring the lines of documentary and drama, fiction and non-fiction. Even themes such as politics are tackled with success. It should also be clear that the success of these television shows has kept advertisers in touch with their audience. If the games industry is to grow, it will do so in part because of the increased interest from advertisers to get in touch with its audience. If this audience is to be worth anything to advertisers, then I’m confident we’ll see a growing up of the tone of many previously sci-fi and fantasty themed games, to a more near-future, dystopian world view where product placement will be less jarring.

Update: Amit has some interesting ideas on the same topic…