Microsoft, EA Ink Game Advertising Deal

By Geoff Duncan July 25, 2007

Microsoft, EA Ink Game Advertising Deal

One the heels of last week’s odd executive swap which saw a former EA leader take over Xbox and Games for Windows businesses and Xbox head Peter Moore depart for EA Sports, Microsoft has inked a deal with leading video game publisher Electronic Arts which brings five of EA’s leading sports titles into Microsoft’s in-game advertising service, Massive Network. The move could be a significant victory for Microsoft in the still-nascent game advertising business, giving the company a significant leg up over Google and other rivals—especially since one of the EA titles included in the deal is the perennial best-seller Madden NFL. Financial terms of the arrangement were not disclosed.

Microsoft acquired Massive, Inc., back in May of 2006, in an effort to jump start its own video game advertising business. In-game advertising aims to draw additional revenue from video games titles—particularly online games—by placing ads for real-world products and services in appropriate locations in video games: for instance, a pizza boz might promote a real-life pizza chain, and images on in-game billboards and TVs might promote real products or current film releases.

“We’re thrilled to be EA’s trusted partner for dynamic in-game advertising for these products,” said Cory Van Arsdale, CEO of Massive, in a statement. “The addition of EA’s leading titles to our network represents a tremendous opportunity for brands targeting the youth demographic and sends a clear message that in-game advertising has arrived as a compelling medium for marketers.”

EA titles included in the deal include Madden NFL 08 and Tiger Woods PGA Tour 08 for Xbox 360 and PC, along with Xbox 360 versions of NASCAR 08,NHL 08, and the forthcoming Skate.

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Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…

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