Owners of the Microsoft (NASDAQ: MSFT) Xbox 360 who have the Xbox Live internet connection can now download a free game called Yaris The game stars a car that has "a giant tentacle that reaches out of its roof to shoot enemies as it races through a futuristic tunnel, sometimes within inches of soaring fireballs," according to The New York Times.
The odd thing about the game is that the Yaris is a real car, made by Toyota (NYSE: TM). The vehicle is inexpensive and aimed at young drivers. Toyota feels that instead of running traditional ads in video games, it is better to offer an entire game and give potential customers an experience instead of a marketing message.
The move seems like a good idea, but it may have two drawbacks. The first is that the video game world may get crowded with games from advertisers, especially if moves into the market by companies like Toyota work. A crowded market mean each product game is likely to get less "face time" with players and companies will have to spend more money to build better and better games and keep ahead of the competition.
The other issue is that much of the video game business has become based on violence and some of that involves cars and other vehicles. Take "Grand Theft Auto" as an example. Does Toyota want to associate itself with a media platform that uses cars are agents of heinous acts?
Maybe not.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
10-09-2007 @ 12:18PM
jpdr1100 said...
So Toyota should avoid involvement in vid games because some other games depict or promote antisocial behavior?
Anyone been to the movies or watched TV lately? Both venues are full of the same. For that matter so is the internet. Should we all boycott that as well?
Some of us have the ability to distinguish entertainment from crap. We could teach you if you are really concerned.
10-28-2007 @ 2:40PM
fniguy29 said...
Dear Investors, I just want to a say a few things about Toyota and its current situation about its stock. TM stock will now rise considerably in the next coming months. Toyotas rock-hard balance sheet and future performance in R&D will help exceed all of its competitors; it�s just a matter of time. I don�t want to focus on GM and bad mouth there polices they believe in, but they only concentrate in the short run and beating sales which eventually just decreases its sales margin. With the coming quarter earnings on November 7th, increase in profits, currency volatility and interest cut on October 31st, expect this stock to climb, not considering the fact that it has hit its 52 week low and rebounded. Long term and short investors will drive this stock back to its original and beyond. Toyotas sales are higher then it�s previous year quarter even with the housing situation a strong earnings report exist. Analyst $180 target price is one that will be reached within a matter of time. If you take out the deliberation of the sub-prime mortgages housing problem, months back. You will see that this stock formerly should had been around 140 and increasing. With the possibility of future Dividends coming, TM will drive up to new highs. There are no reasons why you should consider shorting TM. It�s absolutely outrages if you take the allocated risk into consideration. The housing problem, has led this Toyota down in there first place and not its performance! Short-time investors all bailed out at that time. And now are gaining confidence and are reinvesting in this stock.
A STRONG BUY INDEED