Adweek is reporting that sources within Microsoft have confirmed that Massive Inc., a Microsoft-owned advertising firm, will be shut down before the end of this month. The firm specializes in in-game advertising solutions for various studios. Microsoft, however, has stated that they find efficiency and more revenue in using the Xbox Live dashboard directly, rather than advertising in a game space.
Massive’s problems are further compounded by the fact that revenues must be split with studios for every game sold, something that Microsoft is not too keen about.
Adweek also reports that EA’s recent decisions to keep in-game ads in-house has removed one of Massive’s largest clients, which has hurt the company substantially.
Microsoft purchased Massive to the tune of around $200 million to $400 million back in 2006. The firm had to lay off more than a quarter of its staff last year at Microsoft’s beckoning.
Massive has not made a comment about the report at this time.
