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Wednesday, April 26, 2006

Chess: Microsoft buys videogame advertising company


Microsoft, trying to anticipate and block Google's and/or Sony's next move, has announced a plan to buy Massive a videogame advertising company. Massive along with DoubleFusion are the Clear Channel's of in videogame advertising, a market that is predicted to explode. According to this ClickZ article, the Yankee group estimates it will be worth $732 million by 2010. Will this pave the way for free games, that are completely advertiser supported?

This news has so many other implications, will Microsoft or Google buy an advertising agency or create a strategic alliance with one of the holding companies? Google's entire strategy appears to be creating new media vehicles, why wouldn't they vertically integrate and control content creation as well. These announcements are always more interesting as parts of a hidden strategy.

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