MICROSOFT CLOSES ITS IN-GAME ADVERTISING DIVISION MASSIVE

Microsoft has shuttered its in-game advertising division Massive.  Massive was responsible for selling in-game advertising on its popular Xbox platform.  This however relied on the cooperation of mostly outside gaming companies who were reluctant to give up any profits by relying on an outside source and it goes both ways.

According to a report by Media Week, the company has been in trouble for some time. The problem is easy to understand: Microsoft would prefer to advertise on Xbox Live, where it doesn’t have to split the profits with publishers, than in-game. The same is true for publishers: EA recently pulled its business from Massive in order to sell their own in-game ads.

In-game advertising isn't going away though or even be reduced.  On the contrary, there will probably be an increase in this medium for advertising.  With the rising costs of producing games, publishers are looking for any way to make a little extra profit. [Geek]