BEIJING, May 8 (Xinhuanet) -- Microsoft announced lately that it will buy New York based pioneer of video game advertising Massive Inc., in a bid to generate advertising revenue from the video game industry.

Microsoft announced lately that it will buy New York based pioneer of video game advertising Massive Inc.

    Microsoft did not disclose the financial details of the deal, but analysts estimated the sale to be worth between 200 million and 400 million U.S. dollars.

    Massive's technology allows for dynamic advertising to be placed in individual or group online video games, often in formats that mirror real-life advertising media.

    These ads often appear similar to product placements used in movies, TV shows and video games with advertising messages on billboards, soda cans, background posters as players navigate through the virtual gaming landscape.

    This technology will place relevant ads and have obvious applications in the Xbox 360, Xbox Live and MSN games environment. Microsoft is also exploring Massive Technologies applications with online environments such as Windows Live and MSN. 

    "Advertisers are having a tough time connecting with the elusive 18- to 34-year-old male demographic because this group continues to spend less time watching TV and more time playing video games," Microsoft executive Joanne Bradford said, adding that the in-game advertising market was "largely untapped".

    It's estimated the industry could be worth more than 700 million dollars by 2010.

    The acquisition comes on the heels of the news that Microsoft is to launch its new online ad delivery service, adCenter, in the UK later this year. Enditem

    (Agencies)