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Microsoft to dump in-game ad unit Massive Inc.

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Dela @ Oct 12, 2010 05:27 | 4 comments

Microsoft is reportedly planning to shut its Massive Inc. in-game advertisement unit before the end of the month, four years after acquiring the company for between $200 million and $400 million. Insiders told MediaWeek that the general manager JJ Richards was currently seeking another job, while members of its tech and sales team were being assigned to other projects for Microsoft.

According to the sources, Microsoft has even approached rival in-game ad vendor Double Fusion, seeking a high 6 digit or low 7 digit figure. When Microsoft had acquired Massive in 2006, things were looking good for the firm. So good, in fact, that then-Massive-CEO Mitch Davis predicted the in-game ad market to hit $2 billion this year, which it never has approached.

Microsoft's Xbox Live service has also grown rapidly since then, hosting over 25 million users, and it is considered a more attractive advertising target for brands. Also, Microsoft doesn't have to share revenue from Xbox Live advertising with publishers as it would have to for in-game ads.

At the time of the acquisition, it was understood that some voices in the Xbox camp were not too hot on the deal. Electronic Arts decided to pull its in-game ad business in-house, which also cut revenue for Massive.

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Comments

Comment by: ROMaster2 (Oct 12, 2010 05:30)

Thank god.

Comment by: KillerBug (Oct 13, 2010 04:15)

I can't say I was happy about it either...I wouldn't mind the occasional Coke machine where there would have been a machine that just said "soda"...but I really didn't want all the buildings to be covered with logos to the point that they look like a racing driver uniform.

Comment by: Zealousi (Oct 13, 2010 11:05)

i was playing Dj hero the other night on 360 and as i was playing i saw a billboard in the background for Resident Evil Afterlife movie, i was like wtf is that doing there.

If there is a wall big enough for a Decal then it is big enough for a advertisement.

Comment by: BigDixon (Oct 24, 2010 07:38)

If the software companies make money from adverts, they should be able to cut the cost of the game to consumer and then everybody benefits. It could work particularly well in games like GTA.