Microsoft Acquires In-Game Advertising Leader News

Last week's report from The Wall Street Journal appears to have been spot on, with confirmation that Microsoft has acquired the leading provider of in-game advertising, Massive Inc.

The move will enable Microsoft to increase its significance on advertising revenue, helping to deliver dynamic, relevant adverts across online services, starting with Xbox Live and MSN Games.

"Advertisers are having a tough time connecting with the elusive 18- to 34-year-old male demographic because this group continues to spend less time watching TV and more time playing video games," said Joanne Bradford, corporate vice president of Global Sales and Marketing and chief media revenue officer at Microsoft. "Massive and Microsoft can help lead with our shared vision of delivering more targeted, measurable and effective opportunities for advertisers to reach today's youth audience in a largely untapped market."

Although in-game branding can add to a game's realism, heightening immersion when handled carefully, an over-abundance of ill-suited adverts counters any such notion and leaves the technique feeling little more then a cheap extra revenue stream. Let's just hope Microsoft sticks by the commitment to gamers it has laid out during the announcement, claiming vigorous standards will apply to all adverts before they can be applied in a game, weeding out those which do not add "realism and entertainment value to the overall game experience".

Naturally Microsoft are keen to point out the potential benefits of in-game advertising to gamers, suggesting the model helps developers and publishers alike, whilst ensuring game prices remain affordable and opening up the opportunity for free content, tournaments and other possibilities.

Microsoft hopes the technology will expand beyond Master Chief supping on some Mountain Dew, with suggestions that advertising could branch into other online environments such as Windows Live and MSN, and to spearhead its conflict against Google, by making it available via the adCenter advertising platform.

"We are committed to building an advertiser network that serves a wide spectrum of needs," said Kevin Johnson, co-president of the Platforms & Services Division at Microsoft. "Our acquisition of Massive will expand opportunities for advertisers and enable connection to a broader audience of digital consumers."

"Joining forces with Microsoft will allow Massive to deliver even greater benefits for advertisers, game developers and gamers through one of the world's largest, most comprehensive online networks," said Mitchell Davis, CEO of Massive Inc. "While our current business relationships will remain in place, with Microsoft we have the prospect of extending our technology into a vast array of new markets and online environments."

Terms of the agreement were not disclosed; however The Wall Street Journal previously reported a cost between $200-400 million (£108-216 million).