Microsoft moves into video game advertising


Microsoft (NASDAQ: MSFT) has signed a deal with Electronics Arts (NASDAQ: ERTS) to insert advertising into a number of the game publisher's most popular products. The games include popular sports titles like Tiger Woods golf and the Madden football series.

Microsoft's recently acquired Massive division can insert the ads based on consumer activity, making the marketing messages highly targeted.

The video game ad market is expected to hit $1 billion in the next couple of years. It is not a business that has a single dominant player, so, an alliance with the largest game publisher may help Microsoft take a lead in the sector ahead of Google (NASDAQ: GOOG).

Because they do not have active internet connections, the Sony (NYSE:SNE) PS3 and Nintendo Wii are not candidates for the ad insertion program

The entire process opens up the issue of whether gamers want ads at all. There could be some push-back there.

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