A "Massive" Acquisition by Microsoft

Microsoft has announced that it will buy Massive Inc., an in-game advertisement company to make a place in a niche segment. The details of the deal, or the terms have not been disclosed.

New York based Massive Inc. has been running campaigns for Nokia Oyj and Time Warner Inc.’s Warner brothers and has agreements with more than 30 game developing companies, like THQ Inc. and Konami Corp.

The deal was announced today by Robbie Bach, president of Redmond, Washington-based Microsoft's entertainment division.

The deal marks a major step forward in advertising for the Redmond based software giant, and will mean a more direct approach to reach specific demographic groups of consumers in the arena of online gaming.

The ad-funded model supported by Massive helps game developers deliver high quality and push the creative boundaries of video games to deliver the best gaming experience. It helps publishers offset the skyrocketing costs of video game development, which can in turn benefit gamers, keeping game prices affordable and opening the door to free gameplay, free content, tournaments and other possibilities.

"While our current business relationships will remain in place, with Microsoft we have the prospect of extending our technology into a vast array of new markets and online environments," stated Mitchell Davis, Massive CEO.

Joining forces with Microsoft will allow Massive to deliver even greater benefits for advertisers, game developers and gamers through one of the world's largest, most comprehensive online networks," Davis added.