Last week's news that Microsoft would be acquiring video game advertising firm Massive Inc. for between $200 and $400 million was confirmed by Microsoft on Thursday.
According to a Microsoft press release, Massive’s technology for inserting advertising into games will be integrated across Microsoft properties including games on MSN and games played within MSN Messenger. (It's a given that certain Windows games will continue to incorporate the technology, depending on whether the developers and publishers of those games wish to incorporate it.)
Approximately 60% of Xbox 360s are connected to Microsoft's Xbox Live service. If that connection ratio stays constant even as the number of Xbox 360s sold increases, Microsoft will be able to promise advertisers the ability to deliver ads to millions (if not tens of millions, depending on how Microsoft fares versus the PS3 and Wii) of net-connected console gamers.