Report: Microsoft to close in-game ads dept Massive

Already looking to offload 2006's multi-million acquisition, claim sources

Microsoft is purportedly planning to dispense with Massive Inc, an in-game advertising firm it acquired in 2006 for a rumoured $200 400 million.

Unnamed Microsoft sources told AdWeek that the unit will be closed before November, with many of Massive's staff being moved to other positions in the parent company.

General manager J.J. Richards is allegedly seeking employment elsewhere, following what is claimed to be several months of unsuccessful attempts by Microsoft to sell the company for a mere six or seven figures.

AdWeek claims the reason for Microsoft's alleged dissatisfaction with Massive is both that in-game ads in general have not reached formerly predicted revenues, and that Xbox Live has proven a more lucrative advertising platform.

In addition, publisher EA had not renewed arrangements with Massive, instead opening its own in-game ads division earlier this year.

Related stories

Microsoft calls it quits on Windows Phone hardware and features

After years of largely fruitless effort, Joe Belfiore confirms what many had long assumed

By Matthew Handrahan

Steam, Samsung and Halo all coming to Windows Mixed Reality

SteamVR preview now available to developers, Samsung Odyssey headset announced, and Halo Recruit VR experience will launch on October 17

By Matthew Handrahan

Latest comments (3)

Geraint Bungay Online Publishing Director, Supermassive Games7 years ago
An interesting move. Many predictions are that in-game advertising will be a major revenue source (I do declare an interest here with Big Match Striker!). It's telling that studios such as EA have launched their own ads division, especially relevant around the EA Sports titles one would have though. I genuinely believe that ads will form a solid revenue stream as traditional media struggles for "face time" and games are the perfect vehicle (if done sensitively) to reach your target audience.
0Sign inorRegisterto rate and reply
Always thought that purchase was a giant waste of money, interesting to hear its being off loaded!
0Sign inorRegisterto rate and reply
Yiannis Koumoutzelis Founder & Creative Director, Neriad Games7 years ago
I do not see why other than sports games couldn't advertise in the same way that movies do for so many years. why can't Sam Fisher's phone be "BrandX" or the bottle on the table "VodkaB" or the vending machine you shoot, "ColaX" It is hard to understand why such revenue system is not already mainstream.
0Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.