Microsoft to acquire Massive for $400 million?

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Microsoft is ready to pay anything between $200 million to $400 million for Massive Inc. Massive is a privately held company that places ads on video games.

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Microsoft lagging behind in online advertising arena to Google and Yahoo seems to be in search of a fresh revenue stream. In-game advertising seems to be a safe bet because only recently a study (many among others) from Yankee Group predicts that in-game advertising market is poised for a five time growth over the next four years time. The market grew from a mere $34 million in 2004 to $56 million in 2005. Yankee Group analysts expect it to reach $732 million by 2010.

Is anyone asking, gamer’s response in anyway? It seems a lot of bad press waits for Microsoft, the name we all love to loathe.

More [NYT] (reg. reqd)

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