Paul Loughrey 10:41 (BST)
05/05/2006

Microsoft has officially confirmed its acquisition of dynamic in-game advertising firm Massive Inc, with plans to incorporate ad serving solutions into a range of online and console gaming operations.

The acquisition was initially rumoured last week with a report in the Wall Street Journal that placed a estimated figure of USD 200-400 million on the deal. However, Microsoft has so far declined to comment on the financial terms of the acquisition.

Massive Inc has displayed tremendous growth in its two years of operation, employing some eighty staff with offices in New York, London, L.A., Chicago, San Francisco, Paris, Sydney, Cologne and Toronto.

The company has secured a number of high profile publishing partners for its ad serving solutions, including a deal with Sony Online Entertainment, the MMO gaming division of Microsoft's platform rival. It is unknown at this stage how the acquisition will affect such deals.

"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," stated Mitchell Davis, Massive CEO.

Microsoft plans to implement Massive's dynamic ad solutions into a number of services, beginning with the obvious link to Xbox Live and Xbox 360 titles, but stretching to other online activities such as its casual games space through MSN and Windows Live.

Kevin Johnson, co-president of the Microsoft's platforms and services division, commented: "Our acquisition of Massive will expand opportunities for advertisers and enable connection to a broader audience of digital consumers. We are committed to building an advertiser network that serves a wide spectrum of needs."

"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," Davis added.

It is likely that further details of the company's integration of services within Microsoft's operations will be revealed next month at the Game Advertising Summit in San Francisco, where Mitchell Davis and Kevin Browne, Microsoft's GM, Xbox New Media and Franchise Development, will be providing presentations.