Microsoft To Integrate Massive Into Xbox Live

Microsoft intends to transition newly acquired in-game ad network Massive Inc. from static placements inside games to ads where players can interact with brand names, a company spokesman said late last week. Microsoft also intends to integrate the Massive network into Microsoft's Xbox Live online gaming system, as well as MSN Games.

Microsoft has also recently been expanding into game development, and with the Massive acquisition, could be looking to add another revenue stream to its PC and console games divisions. The software giant acquired Bungie Software, the makers of the enormously popular Halo franchise, in 2000, and this year, acquired Lionshead Software, a development studio run by celebrity game designer Peter Molyneux.

As expected, late last week Microsoft purchased in-game ad network Massive Inc. Terms were not disclosed, but The Wall Street Journal reported earlier that the acquisition was expected to cost between $200 million and $400 million.

"We will monitor how consumers react to existing ads and evaluate their input in test scenarios," the spokesman said. "Then, together we will innovate where it makes sense--whether that be existing billboards and store fronts, 3D objects, videos, or interactive placements where you can engage with the actual brand."

Massive did not return calls for comment.

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