Microsoft has confirmed the reported closure
of its Massive in-game ad company and the dissolution of the brand name. Posting on the Microsoft Advertising Blog
, corporate ad VP Rik van der Kooi explained that the Massive technology would be integrated into Microsoft's first-party ad business, "focusing initially on gaming," including the Xbox Live and MSN Games properties. He added, "This also means that Microsoft will wind-down Massive's third-party in-game ad business and sunset the Massive brand name at year-end."
Massive Inc. in 2006 for between $200 and $400 million. Last year, the business suffered
significant layoffs despite recording soaring
revenues. Microsoft will retain a Massive skeleton crew to wrap up ad campaigns running through the end of 2010. "We will make the wind-down process as seamless as possible for them," Kooi said -- for the clients, that is. No word yet on whether any Massive employees will be transferred to the first-party ad division.