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Monday June 26, 2006 8:15 am

Microsoft’s In-Game Advertising Strategy

A few months ago when Microsoft purchased Massive, a video game advertisement agency that specializes in serving ads to online games, many wondered what direction in-game advertisement would take.  Recently players in PGR3 have seen a new blitz advertising Cadillac cars through in-game models.  Gamedaily reports that Microsoft is viewing in-game advertising as an important revenue stream for the next-gen gaming platform.  Microsoft is looking to sign up 80 more advertising partners by the end of the year and expects to recognize a “25-30% bump in profitability”.  The most surprising fact revealed by Gamedaily was that Microsoft could in the future offer the in-game advertising service to Sony and Nintendo.  Microsoft hopes this would ease the trouble of serving up ads 3 different ways for a PS3 version, 360 version and a Wii version.  If all of the manufacturers hopped on the Massive advertising train it would in essence create another monopoly owned by Microsoft by locking out the 2 main competitors in online gaming ad delivery.  My thoughts about in-game advertising are that, if done unobtrusively, then more money goes to Microsoft and maybe, just maybe the savings will be passed down to me, the gamer.  What are your thoughts on game advertisements?

Read More | GameDaily.Biz

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