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Cadillac secures Xbox Live ad space

Cadillac in Project Gotham Racing 3

Cadillac and Microsoft have reached an advertising deal that will bring virtual recreations of the CTS-V, STS-V and XLR-V high-performance models to Xbox Live, specifically to be used in Project Gotham Racing 3. The cars will be free to download.

This latest revelation, part of the growing in-game advertising movement, highlights the differences between traditional advertising and in-game advertising. With the Cadillac deal, gamers actually interact with a product that is incorporated into PGR3, and more importantly, can choose to avoid it altogether. Microsoft's Kevin Browne has said that an additional 10 to 20 likeminded deals will be announced during the coming year, though it's unclear if any of these ads will be as "user-friendly" as the Cadillac one.

While the Cadillac deal was orchestrated by Play, a division of Denuo, Microsoft recently acquired Massive, a company specializing in in-game advertising, which is set to spearhead this leap into Xbox Live's unlimited ad space.