More Game Ads, Lower Prices

WSJ (subscription required) says Electronic Arts is joining Microsoft in an ad serving service for video games:

Advertising in games remains a relatively small business, but many game publishers believe there’s a large untapped revenue opportunity in displaying ads to their audiences. Many games are played by 18- to 34-year-old men, a prized demographic for marketers that is spending more time playing games at the expense of traditional ad-supported media like television….In the past, companies like EA have integrated mostly “static” advertisements into their videogames that don’t change throughout the life of the game … EA is currently estimated to earn revenue in the single-digit millions from such ads….Such ads must be integrated into a game six to eight months before the title is released…[vs.] “dynamically” insert advertisements into games on a regular basis…

With hundreds of hours playing a title, ad revenues could hit tens of dollars per player which could be billions of dollars vs. millions. In a competitive industry, this should drive the sticker price of the games down.

There is a chicken and egg problem though. Ad rates for games are too low right now for game producers to make the ads too intrusive. That makes the ads less valuable per viewing.

Look for more freeware titles and 100%-mail-in-rebate deals around late 2008 for Christmas 2007 titles that have ads.

Here’s Your Analysis, Senator

Ted Stevens says that he was only (anonymously) holding up the bill until a cost/benefit analysis could be performed on it.

[Excuse me a minute]

[Sorry, give me another minute or so]

[Almost ready now…no, wait, another minute or two]

OK, sorry. Phew. Oh, gosh…man, my sides hurt.

I may have even moistened my pants.

Anyway, where was I?

Oh, right. So he wants a cost/benefit analysis? Here’s a cost/benefit analysis.

  • One set of redundant web servers and enough electricity to run them for a year: $10,000
  • One redundant T3 broadband connection per year: $30,000
  • Staff of ten to maintain web site and keep it updated for one year: $1.5 million
  • Exposing and killing a two-hundred-million-dollar “bridge to nowhere”? Priceless.

[Evening update]

Mark Tapscott has additional thoughts.

Here’s Your Analysis, Senator

Ted Stevens says that he was only (anonymously) holding up the bill until a cost/benefit analysis could be performed on it.

[Excuse me a minute]

[Sorry, give me another minute or so]

[Almost ready now…no, wait, another minute or two]

OK, sorry. Phew. Oh, gosh…man, my sides hurt.

I may have even moistened my pants.

Anyway, where was I?

Oh, right. So he wants a cost/benefit analysis? Here’s a cost/benefit analysis.

  • One set of redundant web servers and enough electricity to run them for a year: $10,000
  • One redundant T3 broadband connection per year: $30,000
  • Staff of ten to maintain web site and keep it updated for one year: $1.5 million
  • Exposing and killing a two-hundred-million-dollar “bridge to nowhere”? Priceless.

[Evening update]

Mark Tapscott has additional thoughts.

Here’s Your Analysis, Senator

Ted Stevens says that he was only (anonymously) holding up the bill until a cost/benefit analysis could be performed on it.

[Excuse me a minute]

[Sorry, give me another minute or so]

[Almost ready now…no, wait, another minute or two]

OK, sorry. Phew. Oh, gosh…man, my sides hurt.

I may have even moistened my pants.

Anyway, where was I?

Oh, right. So he wants a cost/benefit analysis? Here’s a cost/benefit analysis.

  • One set of redundant web servers and enough electricity to run them for a year: $10,000
  • One redundant T3 broadband connection per year: $30,000
  • Staff of ten to maintain web site and keep it updated for one year: $1.5 million
  • Exposing and killing a two-hundred-million-dollar “bridge to nowhere”? Priceless.

[Evening update]

Mark Tapscott has additional thoughts.

RIP Space Pioneer

I hadn’t noticed earlier, but Rocco Petrone died last Friday. I worked for him in the eighties, when he was president of Rockwell’s Space Transportation Systems Division in Downey. He was a key member of the Apollo management team. On the morning of the Challenger disaster, he questioned the decision to launch when he saw icicles hanging from the gantry, but he wasn’t part of the MMT.

Great

With the Tigers in a slump, their nearest rivals, the Twins and the White Sox are playing the worst teams in the respective divisions, while Detroit plays the Yankees.

Forget About Ernesto

It turned out, like Alberto, to be dramatically overhyped (but I guess it’s better to be safe than sorry, and it may still do a lot of damage in the Carolinas and Mid Atlantic). The real hurricane season has begun:

The computer models are very bullish in developing waves coming off the coast of Africa in the next two weeks, and I expect we’ll have at least two new named storms by the time the peak of hurricane season arrives, September 10.

Biting Commentary about Infinity…and Beyond!