Microsoft's Massive Inc. and Electronic Arts solidified their gaming partnership

Electronic Arts recently announced it will use Microsoft's Massive Inc. to offer dynamic in-game advertising for five new game titles that will be released this fall.  The two companies are already working together with EA's Need for Speed Carbon and Def Jam Icon video games.

The following game titles will have dynamic ads via Massive Inc.:  Madden NFL 08 (Microsoft Xbox 360, PC), NASCAR 08 (Xbox 360), NHL 08 (Xbox 360), Tiger Woods PGA Tour 08 (Xbox 360, PC), and Skate (Xbox 360).

Even though more than 35 game publishers are already using services provided by Massive, the agreement with EA will help garner more attention because it is so high-profile.

"We're thrilled to be EA's trusted partner for dynamic in-game advertising for these products," said Cory Van Arsdale, Massive Inc. CEO.  "The addition of EA's leading titles to our network represents a tremendous opportunity for brands targeting the youth demographic and sends a clear message that in-game advertising has arrived as a compelling medium for marketers," he added.

Yankee Group estimates indicate around $26 million was spent in 2006 on dynamic in-game advertising, with the number expected to rise up to $100 million before the end of the year - and up to $650 million within three years.

Microsoft purchased Massive Inc. for $200 million after anticipating in-game advertising would eventually become a major cash cow.  Even though the company is still far behind Google and Yahoo in overall online advertising revenue, Microsoft hopes to get a jump on the two companies in video game advertising.

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