Microsoft to Buy Massive?

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Tha ChiefAccording to the Wall Street Journal, Microsoft is preparing to purchase in-game advertising company Massive for a reported $200 to $400 million. Massive, one of the leading in-game advertising companies specializes in placing dynamic changing ad content like billboards and branded objects in video games.

Microsoft’s online gaming service Xbox Live has a number of income streams, including user subscriptions, Live Arcade, Live Marketplace, and music video and movie trailer deals. Xbox Live currently shows ad-style banners on the dashboard, Live’s non-gaming waiting area. Game play over Live, however, is currently subscription-only with nary an ad in sight, but Microsoft is no stranger to experimentation when it comes to online gaming.

Microsoft has so far remained tight-lipped on the Massive buyout, and the purchase announcement has yet to be released officially. But there’s been major movement over the last few months by in-game advertising industry players like Massive, DoubleFusion and IGA. Microsoft owns one of the largest online video game delivery systems, and the in-game advertising industry could be worth $2 billion by 2010, according to Massive CEO Mitch Davis at the second annual Advertising in Games conference earlier this month.

1 COMMENT

  1. […] The iron is hot for in-game advertising. Just this week, two stories broke which give credence to the notion that the industry has come in to its own in the first quarter of 2006: Microsoft positioning for a buyout of Massive, Inc., and IGA Worldwide’s acquisition of Sony’s Chris Deering and Omnicom’s Bruce Nelson. Along with rival Double Fusion, Massive and IGA are riding the cutting edge of this exciting new medium for ad delivery. […]

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