IGA Worldwide, a leader of in-game advertising strategies, has recently laid off up to seven of their 22 employees following poor performance over the past few quarters. The once booming in-game advertising initiative has significantly dropped over the past couple of years, thanks in part to growing ad revenues seen on social and mobile games. With those smaller titles taking up a lion’s share of gamer’s time, titles in the triple-A sector have weaned away from promoting products from in-game universes.
IGA Worldwide co-founder Justin Townsend confirmed to VentureBeat that just under a quarter of the current employees had to be let go. He declined to offer any more comments on the matter, only mentioning that the move was to help realign business focus and strategy for the company.
The firm saw tremendous growth in 2008, reaching a total of 70 employees while working to bring advertising space to games across the PC, Mac, Flash-based titles as well as the PC.
IGA Worldwide is not the only IGA focused marketing firm to face trouble, since Microsoft recently shuttered Massive to instead focus on XBL and Arcade advertising, rather than in-game strategies.
