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28% of Microsoft's Massive In-Game Ad Unit Laid Off

By Jim Edwards | May 7, 2009

Game news website Gamasutra reported that as part of Microsoft’s effort to lay off 5,000 employees, 28 percent of staff at its Massive in-game advertising unit have been given the boot.

You have to do a little math to figure out how many, exactly, have been let go at Massive. Wired noted that about 100 employees would be 75 percent of its staff, meaning that Massive had about 133 employees in total. If 28 percent of them are gone, then 37 actual employees were laid off.

Massive is responsible for the ingenius — and occasionally ridiculous — in-game ad placements that allowed clients to place live ad buys in online multiplayer games, in addition to installing brands as product placements in published titles. The image is from Battlefield 2142, where:

… the dawn of a new Ice age has thrown the world into a panic. The soil not covered by ice can only feed a fraction of the Earth’s population. The math is simple and brutal: some will live, most will die.

And a lot of people drink Pepsi, apparently.

As Venturebeat points out:

Massive had the biggest jump on all of the in-game advertising rivals, so the cutbacks are almost like a commentary on the future of the entire industry.

The layoffs bring the BNET Ad Agency Layoff Counter to 32,656.

Jim Edwards, a former managing editor of Adweek, has covered drug marketing at Brandweek for four years, and is a former Knight-Bagehot fellow at Columbia University's business and journalism schools. Follow him on Twitter or send him an email.

BNET User Analysis

Web Buzz:
  • Microsoft’s Massive gutted in layoffs

    Adotas - 202 days 45 minutes ago

    ADOTAS — The company’s second round of layffs has included firing many people in its in-game advertising unit. CEO Steve Ballmer told employees yesterday that the company was going a head with its plan to eliminate 5,000 positions by June 2010. While a previous 1,400 positions were vaporized, another 3,000 were part of the second phase....

  • Massive teams with comScore to verify how well in-game ads work

    VentureBeat - 12 days 1 hour ago

    Hoping to win over advertisers, Microsoft’s Massive division and market researcher comScore have teamed up to statistically show how effective in-game advertisements are. Massive inserts ads into games that fit with the context, like ads on billboards in an urban landscape game. These in-game ads have been shown to be effective, but...

  • Just Another Day in Paradise

    Seeking Alpha - 305 days 18 hours 7 minutes ago

    Tom Lindmark submits: Not much going on today. John Thain got the boot at Bank of America BAC, the stock market is tanking, Microsoft MSFT is going to lay off 5,000 employees. You get the idea, just another day in Paradise. Let's breeze through the events so far

  • The direct effect of in-game advertising

    Adotas - 11 days 20 hours 13 minutes ago

    ADOTAS - In-game advertising has been a multimillion dollar industry for several years — brand awareness was evident, but a new partnership between comScore and Massive, a wholly owned subsidiary of Microsoft, will show advertisers the direct effect of their advertising efforts. Ad Effx Action Lift for Gaming will combine in-game console...

  • Microsoft's game studios take a beating in layoffs

    VentureBeat - 304 days 21 hours 18 minutes ago

    Amid the news that Microsoft is laying off 5,000 people over the next 18 months, sources report that the game division has taken its share of the beating. Gamasutra reports that the Flight Simulator studio, dubbed ACES, suffered big layoffs yesterday, which marked the cutting of the first 1,400 jobs. In addition, we've heard that about 30...

 

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