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Report: Microsoft to buy Massive

<i>Wall Street Journal</i> says software giant picking up major player in emerging in-game advertising market.

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If there's a trend analysts have pegged for rapid growth in the gaming industry's near future, chances are Microsoft has a stake in it. The Xbox 360's Xbox Live Marketplace is putting digital distribution and micropayments into action, and according to a new report, Microsoft is looking to buy into the emerging in-game advertising market to the tune of a few hundred million dollars.

The Wall Street Journal (subscription required) is reporting today that Microsoft plans to acquire Massive Inc., with sources pegging the price tag on the deal somewhere between $200 million and $400 million.

Massive's consistently expanding client list includes NCsoft, Atari, Eidos, Konami, Codemasters, Vivendi, THQ, 2K Sports, Spark Unlimited, Acclaim, Ubisoft, and most interestingly, Sony Online Entertainment. Currently, Massive provides in-game ads for SOE's The Matrix Online and PlanetSide.

But even if the acquisition becomes a reality, don't expect to see Halo 3 ads in SOE games anytime soon. SOE PR director Chris Kramer told GameSpot that the company has approval control over every ad served in its games. "As far as we are concerned right now, it's business as usual for both the Matrix Online and PlanetSide," Kramer said.

In-game advertising is clearly poised to grow in the coming years, but there's debate over just how rapid that growth will be. Earlier this month, Massive's own CEO pegged the market at $1.8 billion by the end of the decade, while the managing director of The Wall Street Transcript showed even more enthusiasm in January by projecting the market to reach $4 billion by the end of 2008.

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decebal

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I won't play games with in game advertising. There are too many good games anyways. This will just make it easier for me to select. I mean, imagine the Babilon castle in Prince of Persia with a Coca Cola sign on the walls.

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e10mgs

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i really don't think in-game advertising will affect the quality of the game. People act as if its a new thing but i've seen it in plenty of games.

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Blazer88

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Hmm,...advertising in gaming,..not cool really unless its snuck in there in some way that isn't retarded.Overall though I'm against the idea of it.

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Toadstool1969

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People who say 'in-game ads are going to destroy or ruin gaming' are simpy uninformed. Blizzard has been doing it for years (Battle.net anyone?) and it certainly hasn't harmed their total sales.

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ninjutsuwarrior

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lol...that would be funny

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superbrett2000

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Not good. Ads are a sure fire way to destroy gaming for me. These companies are only fooling themselves if they think I will roll over and let them shove advertising down my throat. Now I might be able to handle it for a reduced price in the game. It would also be nice to have an option to pay a little more for a non advertising version of the same game.

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yallknowdatg

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Wouldn't it have been funny to see Master Chief on a billboard in MGS4?

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sharder1234

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That's all Microsoft does. Buy buy buy. Can they not come up with something of their own?

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dmn_link

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It would funny to see an add of the 360 while playing the PS3 = ]

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modous

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Hmm... I wonder if "The King" from Burger King is going to show up in HALO 3 to give Master Chief some "heart"

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MuchasGarcias

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Hmmm....interesting. I figured that Microsoft would get into the biz...I guess it was cheaper to throw down for Massive than build out their own ad publishing network. This creates some weird financial loops, regardless of whether the client has full control of the ads. That's the least of the issues at stake.

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