Bullish forecasts suggesting that revenue from ads placed within videogames could top $1 billion within three years are wildly optimistic, the chief executive of the world's largest game publisher told Dow Jones on Thursday.
John Riccitiello, head of Electronic Arts Inc., said in-game advertising will eventually emerge as a key source of revenue for videogame publishers, but it will likely take much longer than many in the industry anticipate.
"You can't be as bullish as analysts are on in-game advertising and be sane," he said. "In-game ad expectations are wildly high."
Riccitiello said that, for the moment, in-game ads were a $30 million-a-year business for EA, a tiny fraction of the company's $3.1 billion in sales in fiscal 2007.