On Thursday Microsoft announched the acquisition of Massive Inc., a New York based company that provides in-game advertising.Â The annoucement was made at the 7th Annual MSN Strategic Accounts Summit.
The acquisition of Massive Inc., will allow Microsoft to deliver targeted advertising to gamers, starting with games played on XBox Live and MSN Games.
As if there wasn’t enough product placement in the movies and on tv, now its coming to video games.Â Massive Inc.’s unique ability to depict brands within games in various forms, such as soda cans, billboards, pizza boxes, etc. will allow advertisers to deliver ads to the elusive 18 to 34 year old male demographic that tends to play more video games than watch tv. Advertising in MSN Games will target theÂ casual gaming audienceÂ of females age 35 and up.
One benefit to in-game advertising is that it helps to offset the cost of production for the video game. This could potentially lower the purchase price for consumers, and make way for free content, tournaments, and more.
Not content with just providing in-game advertising, Microsoft is exploring ways to integrate Massive Inc.’s technology into other online environments such as Windows Live and MSN, and to make it available through the adCenter platform.