Microsoft is reportedly planning to shut its Massive Inc. in-game advertisement unit before the end of the month, four years after acquiring the company for between $200 million and $400 million. Insiders told MediaWeek that the general manager JJ Richards was currently seeking another job, while members of its tech and sales team were being assigned to other projects for Microsoft.
According to the sources, Microsoft has even approached rival in-game ad vendor Double Fusion, seeking a high 6 digit or low 7 digit figure. When Microsoft had acquired Massive in 2006, things were looking good for the firm. So good, in fact, that then-Massive-CEO Mitch Davis predicted the in-game ad market to hit $2 billion this year, which it never has approached.
Microsoft's Xbox Live service has also grown rapidly since then, hosting over 25 million users, and it is considered a more attractive advertising target for brands. Also, Microsoft doesn't have to share revenue from Xbox Live advertising with publishers as it would have to for in-game ads.
At the time of the acquisition, it was understood that some voices in the Xbox camp were not too hot on the deal. Electronic Arts decided to pull its in-game ad business in-house, which also cut revenue for Massive.
Microsoft's Xbox Live service has also grown rapidly since then, hosting over 25 million users, and it is considered a more attractive advertising target for brands. Also, Microsoft doesn't have to share revenue from Xbox Live advertising with publishers as it would have to for in-game ads.
At the time of the acquisition, it was understood that some voices in the Xbox camp were not too hot on the deal. Electronic Arts decided to pull its in-game ad business in-house, which also cut revenue for Massive.
