Social Cache.
A Nemo blog. Dealing with uncommon cents.

Electronic Arts, the world’s largest video game company, said it made the deal with Ikea, the Swedish furniture manufacturer, in response to requests in online players’ forums for more modern, realistic furniture. “Because we have such a direct relationship with our players, the players help shape the product strategy,” said Nancy Smith, president of the Sims label, which has sold more than 100 million copies.

The deal is yet another example of how the traditional lines between paid-for content and marketing material are blurring in the media world. Companies that sell products and services are increasingly eager to place their wares inside television shows and other media rather than relying on stand-alone commercials. Media companies like Electronic Arts, meanwhile, are looking to sponsorship deals to help recoup the growing cost of developing games.

Michael Goodman, an analyst at the Yankee Group, said that last year, marketers spent about $180 million on in-game advertising, including sponsorships like Ikea’s deal. He has predicted that spending would rise to $332 million this year, but said he was considering lowering that forecast slightly, as growth seems to be slower than expected.

The key to the Ikea relationship was the audience invited them in as part of their gaming experience. Other brands looking at the success of Ikea / Sims deal should really understand if they are invited to the party before they toss down millions to be on a billboard or be included in the product placement. Just because you can pay doesn’t mean you get to play!

Eric Pfanner wrote about the relationship with Ikea and Sims 2 in a May 29th, 2008 article in the New York Times.

Grand Theft Auto IV sold 6 million copies in its first week at $60 a pop in the USA. Globally it brought in $500 million. That outstrips all of the first weeks music CD sales from top artists since 1991. Here’s the top 5 list of those week one sales in units not dollars:

1. ‘N Sync – No Strings Attached – 2.4 million
2. ‘N Sync – Celebrity – 1.9 million
3. Eminem – The Marshall Mathers LP – 1.8 million
4. Backstreet Boys – Black and Blue – 1.6 million
5. Britney Spears – Oops….I Did It Again – 1.3 million

On April 29th one day sales for Grand Theft Auto IV were 3.6 million copies. Now, let’s hear it from all those folks who say that internet file sharing is killing music sales….