IGA Worldwide, the company providing the in-game advertising for Quake Live, is struggling with funding due to the continuing global depression.
Chairman Justin Townsend yesterday announced in a phone call with Venturebeat.com IGA either needs new investors or find someone who’ll take over the company.
Venturebeat.com further reports:
While Townsend said he did not want to sell the company, he acknowledged that times are tough. After the economic turmoil erupted in September, he said that ad budgets were scaled back and the company realized it wouldn’t be able to make its projected revenues. In November, IGA laid off 25 percent of the company, leaving it with about 45, Townsend said. But Townsend said IGA did not want to accept “low ball offers” to purchase the company.
As a general observation it might be interesting to ask in which way this will affect Quake Live. The depression seems to have very little effect on the gaming industry in general. Finding sponsors willing to advertise in games, however, is an entire different story:
The bigger question is, are IGA’s problems its own doing, or are they inherent to the in-game ad industry as a whole? On the one hand, the video game industry is one of the few areas of the economy that remains resilient, with growing revenues. On the other, the ad industry has taken a hit, with brands less willing to spend money on advertising at a time when consumers are less likely to respond.
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