Microsoft Makes Massive Purchase?
According to the Wall Street Journal, Microsoft is currently planning to buy in game advertising firm Massive. In game advertising has rapidly become a huge topic in the industry, with several firms popping up in the last few years, and many publishers signing long-term multi-game deals. As the owner of the Xbox platform as well as the de facto steward of PC gaming via Windows, and as a game developer and publisher, Microsoft has a lot of avenues by which to take advantage of this type of marketing. Its Xbox Live service in particular is well-suited to such methods, seeing frequent marketing tie-ins with non-gaming entertainment such as movies and music. Interestingly, as noted in this Shacknews interview, Massive has current contracts with many major publishers, most of whom release games on non-Microsoft platforms as well as Xbox and/or Windows: Atari, Codemasters, Eidos, Funcom, Legacy Interactive, Majesco, Take-2, Ubisoft, and Vivendi Universal, at time of writing. Advertising partners include Intel, Paramount, Universal, Coke brands, Comcast G4 Network, Nestle, Honda, T-Mobile, Verizon DSL and Dunkin’ Donuts. Microsoft Corp (Nasdaq:MSFT - news) plans to pay $200 million to $400 million for Massive Inc., a privately held company that places ads in videogames, the Wall Street Journal said on Wednesday. The deal to buy the two-year-old start-up highlights the increasing importance of advertising in nontraditional media, the report said. It noted Massive's clients include Coca-Cola Co. (NYSE:KO - news), Honda Motor Co. (7267.T) and other advertisers that are boosting spending on ads in videogames.
Neither Microsoft nor Massive is currently commenting on the veracity of the Wall Street Journal's claim, but the news outlet has a strong track record for such stories.
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