Report: Microsoft Is Shutting Down Its In-Game Ad Unit

After trying to sell it for a "low seven-figure" price to its rival ad network, Double Fusion, it seems that Microsoft has finally decided to shut down its in-game advertising unit, Massive before the end of the month.

The above information comes from Ad industry trade publication Adweek which cited "sources close to the company" and "insiders at Microsoft" in reporting that Massive General Manager J.J. Richards has been seeking new employment and that other unit members are being reassigned throughout the company.

Microsoft originally acquired Massive in 2006 for a reported $200 to $400 million, just to find out that its business model conflicts Xbox Live which sells advertisements directly and doesn't have to share revenue with publishers.

Massive has continued to sign deals with major publishers through 2009, but EA's decision to withdraw and to handle its advertising in-house earlier this year, seems to have been the final nail in Massive's coffin.

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