- EA has confirmed internal discussions about the implementation of advertisements in AAA games.
- The publisher states that this won’t happen anytime soon, but the initial discussions have already begun.
- EA sees advertising as a new revenue stream for studios.
For quite some time, the gaming industry, apart from mobile gaming, has steered clear of incorporating advertisements. Even if there have been instances, they have been kept to a bare minimum or as seamless as possible.
Games manage to generate revenue without relying on advertisements through straightforward means: either they are paid games upfront, or they utilize alternative revenue streams such as microtransactions.
However, the landscape may soon change as advertisements become commonplace in AAA video games. This shift is hinted at by EA’s CEO, Andrew Wilson, who mentioned considerations about advertisements in future EA games.
Why it matters: Ads are typically disliked but are crucial for many industries. Platforms like YouTube and Twitch depend on ads for revenue, allowing them to remain free for users.
This statement comes from EA CEO Andrew Wilson, who discussed the prospect of advertising during a recent earnings call. The studio believes this inclusion can be a strategy to stimulate growth.
Andrew Wilson mentioned that although it’s quite early to make a decision, EA plans to approach this matter with careful consideration, with the first discussions now underway.
We have teams in the company looking at how we do thoughtful implementations(of ads) inside of our gaming experiences.
-EA CEO Andrew Wilson
As the cost of developing video games continues to rise, developers are exploring new avenues to generate revenue. In-game advertisements within AAA games could emerge as an additional revenue stream for developers in the foreseeable future.
Should EA proceed with this decision, the ads implemented must differ significantly from those typically encountered on platforms like YouTube or in many mobile games. Such advertisements would diminish user experience in games.
We hope that developers are well aware of these concerns and would not entertain the idea of implementing such a disruptive ad strategy. For these reasons, this can be seen as concerning news for gamers worldwide.
Elsewhere, EA confirmed its revenue was up 2% year-over-year, while net bookings were up 1% year-over-year. EA’s live service games played a big part, and net profit was up 58.7%.
Moreover, consoles remained their number one platform in terms of revenue.
EA now has the biggest team working on a Battlefield game ever. The studio has also demonstrated significant interest in AI, foreseeing its potential to influence more than 50% of development processes positively.
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[News Reporter]
Avinash is currently pursuing a Business degree in Australia. For more than three years, he has been working as a gaming journalist, utilizing his writing skills and love for gaming to report on the latest updates in the industry. Avinash loves to play action games like Devil May Cry and has also been mentioned on highly regarded websites, such as IGN, GamesRadar, GameRant, Dualshockers, CBR, and Gamespot.
