Microsoft, EA sign sports game ad deal
The deal, which also covers EA's Nascar, Tiger Woods golf, NHL hockey and upcoming Skate skateboarding games, is a significant win for Microsoft as it tries to build an early lead over rivals such as Google in putting ads into video games.
"The real issue here is that we're making a network play. If I just had Madden, while great, it would be of limited value to advertisers," said Cory Van Arsdale, chief executive of Massive, a game ad company that Microsoft bought last year for $200 million.
The deal comes as Massive faces increased competition from Google, which bought game ad service Adscape for a reported $23 million in March, and from
"We need to build an overall network, and this is a major stepping point to have us do that," Van Arsdale said in an interview with Reuters.
Massive acts as a broker between companies that want to get their ads in front of gamers and game publishers eager to tap new sources of revenue to offset higher development costs for flashy new titles that can cost $20 million or more to make.
Financial details of the deal were not disclosed.
The $30 billion global
The ads Massive delivers are dynamic, meaning that they can be tailored by advertisers to target specific groups or areas. Unlike static ads that are a permanent part of a game, they can be altered quickly to pitch new products.
The deal is also the latest indication of increasingly cozy ties between Microsoft, the world's biggest software company, and EA, the No. 1 independent video game publisher.
Last week, Microsoft said its game chief,
The arrangement covers only versions of those games for personal computers and Microsoft's Xbox 360, two platforms that have a high proportion of users connected to the Internet.
Nintendo's Wii console and
"We would love to do Nintendo and PlayStation, but they control the platform, they control the ecosystem, and they have to decide what to allow or not. It's not something that's in our control," Van Arsdale said.