As regular readers will remember, Microsoft recently bought in-gae ad network Massive, Inc.

A few weeks ago, Hollywood Reporter columnist Paul Hyman reported that Microsoft is interested in Sony and Nintendo using Massive's services, rather than locking its competitors out of the market. From the article,

As so many proponents of in-game ads argue, Microsoft representatives argue that cost offset is the primary rationale for the practice (that's cost offset for the publisher, not the consumer by the way). But these assumptions are based on development costs of $15-20 million+ for next-gen games. One of my hopes is that the Nintendo Wii will be less susceptible to in-game ads precisely because its development costs are much, much lower, perhaps around $2 million for many games. Nintendo and Wii developers/publishers could enjoy even more differentiation in the next-gen marketplace by refusing to participate in in-game ads.