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.