The Wall Street Journal is reporting that Microsoft is planning to acquire in-game advertising firm Massive Inc. for anywhere between $200 and $400 million, with the official announcement to come next week, writes Gamasutra. Microsoft is apparently interested in controlling how advertising is placed within games and wants to try using ads to subsidize users' costs for massively multiplayer online games.
The WSJ article implies that with a Microsoft acquisition, Massive's technology would likely cross over to the Xbox 360 as well as result in in-game ads for Xbox Live.
Reuters writes that the deal underscores the increasing importance of advertising in nontraditional media, with the WSJ article noting that Massive's advertisers include Coca-Cola and Honda, among others, and they are increasing their in-game ad spend.
