The strong performance of video games and the proliferation of social gaming (via Facebook, MySpace, Yahoo, etc.) has been one of the few retail bright spots despite the continued economic downturn.  When industry stalwarts like Disney and Amazon start getting involved, I think it’s time for all of us to start thinking about their marketing significance.

Is this a sustainable trend you ask? Why are Disney and Amazon taking notice?  Simply put, the parents of today and tomorrow are the players from yesterday.  The Gen Y’ers spent their early years with Nintendo and Sega, advanced to early Sims (like SimCity and Roller Coaster Tycoon), and have adopted these into their regular, recurring behaviors.  Playing social-oriented games is a normal part of their everyday routine.  Whereas, Gen X’ers are still excited about playing Lexulous again on Facebook, Gen Y’ers are not only playing but developing their own networks.  These networks appear to be far less about the gaming (although it obviously has to be compelling) and increasingly more about the interaction, the like-mindedness of fellow players and the ability to connect on a social level.  Marketers should not fall into the trap of viewing this audience as the stereotypical 24-year-old guy living in his parents’ basement; they are young professionals and parents who have matured with games integrated into their lifestyles. 

Unlike the mp3 and iPod revolution, gaming is far less transactional-based from a marketers’ perspective.  There is limited opportunity for marketers to intercept someone when they go into iTunes to download a new song or get a web cast.  However, with games you have engaged users interacting with the game and other participants for extended periods of time.  Games like the Sims, HALO and Wii’s Animal Crossing are just the tip of the proverbial iceberg in the years to come. 

The possibilities are endless for direct marketers.  In the not-too-distant future, gaming will recognize what time it is in the real world and allow you to order a pizza and have it delivered without ever leaving the game experience.  Incentives within the games can be tied to and redeemed for real goods and services with immediate gratification.  When logging on, the ability to rejoin the game can be accompanied by the users’ one-click/tap to pay bills. 

This type of multitasking is obviously already occurring online in a rudimentary fashion as people open different windows in IE or Firefox to perform different functions and jump form one thing to another.  Yet, just like mash-ups (iGoogle, myYahoo) are becoming the preferred search mechanisms and home pages of today, users whose game use is second nature will look to integrate basic household functions into their gaming experiences. 

Don’t be surprised if 2010 or 2011 brings about sponsored games like “Betty Crocker’s Cooking Mama” (Cooking Mama is currently a Nintendo D/S game) or the “U.S. Army’s HALO.”  These are likely steps in the evolution of gaming because they are also the simplest.  Advertising agencies know how to do sponsorships and product placements, but is that really value-added integration for the user? I think not.  Direct marketers should look to embrace Activision, EA, etc. beyond placement opportunities and work with the developers to find true areas of integration that will separate our brands by maximizing the value they bring to the user. 

Slapping logos on a game or inside of a billboard as you race along playing Mario Kart is nice as it gets eyeballs on your brand, but how do you endear your brand to the user?  That’s where the golden goose lies for direct marketing…endearment.  It’s beyond integration or interactivity; it is a connectivity for the user to say “I’m glad XYZ was there to help me on my terms.”