December 5, 2006 > EA sees boost from in-game ads, holiday spending

San Jose Business Journal, November 29_ According to reports, Electronic Arts Inc. expects a big revenue boost from in-game advertising and a strong holiday shopping season.

During the holiday quarter, Redwood City-based Electronic Arts (NASDAQ:ERTS) estimates it will see between $4 million and $5 million in revenue from ads placed in the "Need for Speed:Carbon" game, the Wall Street Journal reported.

About half that will come from billboards promoting brands included in the game before it is published, but there will also be a new revenue stream from in-game ads -- also called "dynamic" ads -- which show up in games that run on Xbox 360 and personal computers if the machines are connected to the Internet.

Meanwhile, Larry Probst, EA's chief executive, told the Reuters Media Summit in New York that sales of interactive game devices and software are meeting or slightly exceeding expectations so far in the holiday shopping season.