Massive Blow: Microsoft to Close In-Game Ad Company

If a report in MediaWeek is true, Microsoft is going to be closing its in-game ad subsidiary, Massive Inc, which it acquired in 2006 for an estimated $200 million to $400 million.

According to the report, "Insiders at Microsoft said that Massive general manager JJ Richards has been seeking another job, while members of Massive’s technology and sales team are gradually being assigned to other projects."

One of the major problems faced by Massive was the fact that Electronic Arts decided to pull out of an in-game deal it had signed with the company back in 2006.

MediaWeek also reports that "according to sources, Massive’s ad sales efforts were never fully integrated within the Xbox team. In fact, at the time of the acquisition, several Xbox executives were said to be against the deal, but ex-Microsoft executive Cory Van Arsdale and other members of the company’s business development team had pushed hard to buy Massive, citing the fast-growing interest in the gaming space among brands."