Microsoft is expected to launch a major upgrade of MSN Spaces, including its blogging features, to include a revenue-sharing advertising option and a new partnership with Kanoodle and Amazon.com, reports Publish, citing Liveside.Net and other Microsoft watchers. Apparently, MSN is partnering with web advertising provider Kanoodle to allow MSN Spaces bloggers to opt into displaying ads and sharing in the revenues generated.

Amazon will apparently play an as-yet undisclosed role in the online advertising push. Moreover, MSN Spaces will be integrated with the Xbox 360, and a "Live Contacts" feature will automatically subscribers of updated blog entries.