CES 2009: Logitech Believes Advertisements Can Reduce Hardware Costs

Wed, Jan 7, 2009

Parts of hardware product costs could be reduced through the savvy use of advertisements, said a Logitech marketing executive.

During Digital Hollywood's "Innovation in Games, Game Networks and Social Gaming" panel, Ruben Mookerjee, director of product marketing for gaming, said devices that have small screens could show ads to users, one way to get prices of high-end gear down.

Not one to let such an interesting tidbit go unnoticed, we caught up with Ruben after the panel to pick his brain a bit more.

Mookerjee pointed to the G19 gaming keyboard. "There’s this gorgeous display" on the keyboard "that would be a very powerful vehicle for delivering an advertising message in a very persuasive -- but unobtrusive -- way." He said users are now savvy enough to know that the "only reason they paid $50" for the high-end product "when it costs over $200 retail is because they’re getting advertisement messages."

Currently, nothing on the market really follows that strategy. But in the future it will be a "must-have" on gaming consoles as companies look for creative ways of offsetting high cost, he said. Paying attention, Sony?

advertising, CES 2009, cost, Cost of Gaming, cost reduction, G19, hardware, Logitech, Ruben Mookerjee

This post was written by:

Brendon Lindsey - who has written 274 posts on GameCyte.

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6 Comments For This Post

Trevor Says:
January 7th, 2009 at 2:23 pm
I actually wouldn't mind an occasional scrolling ad for X weeks after purchase if I could get things like the G19 that much cheaper.
Ryan Says:
January 7th, 2009 at 3:38 pm
You do realize Trevor that you would NEED the G19 to even see said advertisement?

If anything this is the industry that is literally trying to squeeze every nickel and dime our of consumers with an interest in computers and video games. Now most parents or friends who do not share this passion will buy most products at an outrageous price, but from my knowledge most people interested in their passion will find a way to get the product they want for as cheap as possible.

While I go to newegg for my graphics card, my family goes to best buy or fry's and pay sometimes twice to three times as much than compared to newegg.

However this is creating a revenue stream out of nothing and I do hope there will be 2 versions that will give the consumer the choice to NOT get advertisements on their G19. Because the last thing we need is more advertisements, I want to play my games in peace. Nobody throws an advertisement in the middle of a paragraph when I am reading a book and I do not need my eyes distracted from a 5 dollars of theatre ticket when I need my HUD telling me information so I can enjoy the visuals of the game without brining up the in game HUD.
Brendon Lindsey Says:
January 7th, 2009 at 6:26 pm
The point was, Ryan, that Logitech could release the $200 keyboard for only $50--if the buyer was willing to view ads on it.
Ryan Says:
January 7th, 2009 at 6:31 pm
Between the two evils I'd rather just pay the 200 dollars and have no ads on my equipment. Last thing I need to see on my keyboard is your standard "Increase the size of..." on my keyboard.
Alexander Galerakis Says:
January 7th, 2009 at 11:03 pm
I'd rather get it for $50, they can't exactly force my head to look at the ads on its display, nor can they know if I'll even cover it or not. And for every 10 people like me who will cover the ad display, there's probably 100 of those best buy-ers you mentioned in a past comment that won't do that, making it a good investment for the company as well. If it was for a limited time like Trevor suggested with his example, then it'd be even better for everyone.

Of course I'm also sceptical, it wouldn't be the first time we see company execs mention ways to reduce the end user cost of anything, while in turn the cost remains the same and they get an additional revenue stream on top of that. Much like digital distribution for example, which was often hailed as the cheap solution since you'd no longer pay for the packaging and shipping required, when the most prominent platforms now charge full-price for most games -- special offers aside, which are null since retail stores also have such offers, as well as bargain bins, which digital platforms seem to forger about for all but the oldest, ancient titles.
VinTheDean Says:
January 8th, 2009 at 1:00 pm
I'll pay $50 for it and put tape over the screen.

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