MySpace gets games

News Corp (NYSE: NWS)'s MySpace is getting into the online game business in the hopes of attracting and keeping more users. The largest social networking website will announce a deal with online game company Oberon, which provides games to a number of large web properties including Yahoo! (NASDAQ:YHOO).

According to The Wall Street Journal, "the companies plan to incorporate features into the MySpace games area that allow users to socialize by inviting friends to participate in multiplayer games and to chat while they are playing." This kind of online activity is much smaller than playing games on video consoles, but it is growing more quickly.

What appears to be happening here is that MySpace is beginning to turn itself into a portal not terribly different from Yahoo! or MSN. It already offers video and music services. It also has instant messaging and other communications features like a partnership with Skype.

The movement into the portal space is smart. The bear case on social networks is that it is hard to pin down the activities and demographics of their audiences, making marketing on the sites difficult. Offering services that provide magnets which draw MySpace users to one activity makes it easier for advertisers to push messages to those users based on their behavior.

Being a portal may not be the business that it used to be. But it still appears to be better than being a social network, at least from an advertiser's viewpoint.

Douglas A. McIntyre is an editor of 247wallst.com