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MS learns to share... ad space in your games...
Written by Daniel   
Monday, 12 February 2007 06:37

Microsoft to Share Ad Revenue With Casual Game Developers
Marcus Yam (Blog)

Developers for MSN Games to be given a small piece of the pie

Microsoft today unveiled plans to share a percentage of in-game advertising revenue from MSN Games with its casual game developers. Funds will accrue monthly, with developers sharing a percentage of the gross revenue received from the advertisements shown during online gameplay for their titles, including ads served during the loading screens at the start of a game or in between levels, as well as ads placed in or around the game window during gameplay.

Microsoft estimates that the developers of the five most popular titles on MSN Games participating in the Ad-Share Program are likely to share nearly $250,000 annually, based on current in-game advertising revenue rates.

“Casual game developers traditionally operate on a limited revenue model, typically receiving a set fee from downloadable titles or a small royalty associated with game subscriptions,” said Chris Early, studio manager for Microsoft Casual Games at Microsoft. “Now, by sharing in-game advertising revenue, we’re allowing a more diversified business model that gives our partners more resources to create new, innovative titles for the 13 million people we see every month on MSN Games.”

The newly launched program offers casual game developers advertising revenue incentives at two levels. The first level requires little to no change in the development and submission process and offers developers 10 percent of the total in-game advertising revenue generated by their titles. The second level offers developers an increased advertising revenue incentive of 20 percent and requires a few additions to the game development process, such as localization, ESRB ratings and the creation of a “deluxe” game experience that offers players at least 10 hours of free Web-based gameplay.... More

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