BandwidthCamp

AdAge has a great article on the deal between EA and Massive/Microsoft that I posted about last week.

And while a few extra million may not seem like much to a $3 billion company like EA, the ad revenue is easy money — that is, it adds to a publisher’s bottom line without adding much to top-line development costs. And in a low-margin business with only $3 to $5 in profit on a $50 video game, even one extra dollar per box is significant.

Console makers make most of their money off accessories, however, you can see why they would go after in-game ads. As the quote above points out, you can add to your bottom line without adding much to your production costs.