Microsoft To Close In-Game Advertising Division

by Bryan Vore on Oct 10, 2010 at 06:39 AM

Microsoft is said to be shutting down Massive Inc. by the end of the month. Back when the big M first bought Massive in 2006 for an estimated $200 to $400 million, in-game ads were seen as the future of gaming revenue. Now it just looks like a money-hemorrhaging disaster.

According to Ad Week, Massive general manager J.J. Richards is looking for another job while the rest of the team is being split up and spread around other Microsoft divisions. The pub also asserts that Microsoft tried to sell off Massive for a high six-figure or low seven-figure amount. Only a minute fraction of what Microsoft allegedly paid for it in the firest place.

Microsoft found that running ads on Xbox Live is a much more lucrative venture since all Xbox users connected to the Internet will see them rather than just those playing a specific game. Plus, Microsoft doesn't have to share Live ad profits with the publisher of the game.

We'll be sure to report on any official announcements from Microsoft regarding Massive in the coming weeks and months.