You're already paying $60 for the game. Will these ads cut down the price? Don't bet on it. Now ads are nothing new in games. I remember the British Knights ads in Arch Rivals for the NES, but here, we're talking dynamic ads, so while you may drive past one kind of billboard in a game on one day, the next day, it may be a completely different billboard in the same spot. To measure demographics, Sony will likely need to have these games "phone home" to let them know the game is being played, which is, by definition, a form of spyware. I hope they can come up with a way to do this without compromising privacy. It can be done, but Sony has a lousy track record in this department.

Sony Computer Entertainment America and Sony Computer Entertainment Europe Announce Introduction of Dynamic In-Game Advertising

Advertising Partnership Introduces PS3 as a Dynamic In-Game Ad Platform

FOSTER CITY, Calif. and LONDON, June 4 /PRNewswire/ -- Sony Computer Entertainment America (SCEA) and Sony Computer Entertainment Europe (SCEE) today announced the introduction of dynamic in-game advertising on PLAYSTATION(R)3 (PS3). 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 $971.3 million between 2006 and 2011 according to the Yankee Group.

"The PS3 platform is primed to leverage the high growth potential of the in-game advertising market," said Phil Rosenberg, Senior Vice President, SCEA. "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."

PS3 provides advertisers with a direct avenue to reach the highly targeted, sought after gaming demographic, and has sold more than 12.5M units worldwide. DFC Intelligence forecasts that sales for the current generation of game systems will pass the 180 million mark by 2011, therefore, reiterating the potential for the in-game advertising market.