Microsoft's Video Game Ads?

Reported earlier Microsoft's next big move is toward online video games. Online ads in online video games to be precise.

Microsoft finalized the details of aquiring the New York based Massive Inc. on Thursday, though declined to disclose the financial terms of the agreement. The deal is said to range between $200 million and $400 million.

Massive Inc. specializes in placing ads in online video games through the online connection. It is said to remain headquartered in New York at this time. Massive Inc. also has offices worldwide including in London, Los Angeles, San Francisco and Sydney which will remain open.

Microsoft will be able to input ads regularly through the newly acquired technology as opposed to using more static methods now. Meaning Microsoft can specialize ads for individuals, times, and locations if desired. One ads space can be filled with numerous ads rather than one singular ad.

Initially this technology will be used in XBox Live and MSN Games online. Microsoft is also exploring ways to use the Massive technology in exisitng avenues.

Microsoft plans to make a big appearance in the online advertising world this year, showing investors just how serious it is in increasing paid options online. Microsoft is spending millions yet again in research and development, last fiscal year it spent $500 million and its spending $700 million this fiscal year which ends in June.

Will Microsft's excess in R&D prove positive for the comglomerate? Google is already up in arms over other Microsoft doings and Microsoft has no intention of backing off. With the launch of IE7, the new internet search engine, and this online video game advertisement Microsoft may very well make it's mark.

Wall Street will be paying attention.