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Toyota (TM) builds its own video-game

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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Last updated: November 11, 2009: 04:18 PM

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