Next Generation - Report: Microsoft to Acquire Massive Inc.

Brilliant move by Microsoft, effectively adding another revenue stream to Xbox Live. The implementation will have to be more than the article at Next Generation suggests, however, because for in-game advertising to work, it needs to be seamless and content-appropriate.

For example, the way the advertising was integrated into Fight Night 3 was brilliant, if a bit overbearing at times. During the beta for The Matrix Online, you could see billboards across the city displaying ads for the movie Batman Begins. When ads are used in a way that we're used to, they'll be far more effective. Anything else might be attention getting, but will generate a lot of gamer resent as they've realized they've paid $60 for a game that should have cost half as much if it's being subsidized by ad revenue.