IndustryGamers - Informing the Games Industry

PS3's 'Home' Not So Comfy for Advertisers - report

Posted February 24, 2010 by James Brightman

PlayStation Home took a long while to finally launch to the public, and when it did, many were unimpressed by Sony's virtual world for PS3. One goal for Sony was to leverage the virtual space with advertisers, but according to Mediaweek, that effort may be failing. About a year ago, Sony made its presence felt at the Engage Expo to showcase PlayStation Home, and Red Bull jumped on board as one of Home’s first sponsors. Now, however, Mediaweek points out that Red Bull "remains one of the few non-endemic advertisers to carve out space in the world."

Microsoft seems to have the advantage with Xbox Live, partially because Microsoft is viewed more as a media company, Jon Epstein, CEO of Double Fusion pointed out. “Microsoft has MSN. They are much more of a media company than Sony has traditionally been,” he said.

“From moment one, it kind of felt clunky,” said John Rafferty, creative director at Publicis’ Denuo, concerning Home. “And once you got through that, there wasn’t much there.” He added that PlayStation often looks for labor-intensive six-figure deals. “There’s just a huge barrier to entry for advertisers,” said Rafferty. He noted that following an initial push, he’s heard little from the Sony sales team regarding Home. Indeed, last October, Sony said that its business model for Home is "not a priority right now."

“Sony is a little more conservative in embracing their system as an ad platform. They just have less people,” noted Dario Raciti, director of Ignition Factory at OMD, who added that PSN is catching up with Xbox Live. “I think they are starting to go down the path of being more competitive with Xbox Live.”

Home now has over 11 million users globally, compared to 40 million registered accounts on PlayStation Network overall (but many users can have multiple PSN accounts). For its part, Sony feels Home is coming into its own now. The company has been adding more games and spaces to the virtual world, and recently brands such as U.S. Army and Fox have run campaigns. “PlayStation Home offers partners a chance to cut through the noise and actively engage directly with a large, targeted, and highly desirable consumer base,” said Jack Buser, director of PlayStation Home. “Over 30 partners have recognized PlayStation Home as an interactive platform to convey an immersive brand experience.“

James Brightman has been covering the games industry since 2003 and has been an avid gamer ever since the days of Atari and Intellivision. He was previously the EIC of GameDaily Biz.