SELL THEM WHERE THEY ARE
(Update: It's official. In a press release dated May 4, 2006, Microsoft announces the acquisition of Massive Inc.)
Speaking of games and virtual worlds over the last few days (see here and here), I thought it relevant to highlight this little acquisition by Microsoft today, from the Wall Street Journal:
"Microsoft Corp. plans to acquire Massive Inc., a closely held start-up that places ads in videogames, in a deal that highlights the growing flow of advertising into nontraditional media.
Massive, a two-year-old start-up with 80 employees, is one of several companies pioneering the business of placing ads in videogames. Massive's clients include Coca-Cola Co., Honda Motor Co. and other advertisers that are gradually increasing their spending on ads in videogames.
Microsoft plans to announce next week an agreement to buy the New York company, said people familiar with the situation. People familiar with the matter estimated the deal to be valued at $200 million to $400 million."
The article goes on to point out other more or less similar acquisitions like this one by other incumbent media companies:
"Major media companies have similarly begun to increase their investments in game-related media to ensure they stay abreast of consumers' tastes.
This week, Viacom Inc. paid $102 million to acquire Xfire Inc., a start-up that operates an instant-messaging service that connects gamers over the Internet.
Last September, News Corp. agreed to pay $650 million to acquire IGN Entertainment Inc., a company that operates a collection of Web sites for game enthusiasts."
This is not a slam-dunk business, even though on the surface, the thought of putting ads in front of millions of mainstream folks, riveted for hours on end in virtual worlds, may be of some appeal to advertisers.
Often the ads and game genres don't mix, as this bit from the article points out:
"Online videogame provider NCsoft is unsure whether advertisements for modern goods will work in its games, some of which are set in the distant past (such as medieval times) and the future, says Dorothy Ferguson, an NCsoft vice president."
But these are barely speed bumps. Given that massive attention is shifting over time to folks living "virtual lives", creative solutions to these kinds of issues are likely just around the corner.
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