Microsoft has confirmed that it will pump advertisements into a large amount of Electronic Arts sports titles including the top selling Madden franchise. The deal also covers NASCAR, Tiger Woods Golf, NHL hockey and Skate and is touted as a great coup for MS as they try and build a lead over the likes of Google who are working in the video games ads field. Whatever next? Virtual Commercials between quarters?

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 privately held companies such as Double Fusion.

"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. In-game advertising was worth just $50 million in 2005, but that is expected by many analysts and industry executives to balloon to $1 billion over the next few years.

The $30 billion global video game industry is also one of the fastest-growing entertainment sectors, thanks to new home and handheld gaming machines and a rush among publishers to win over nontraditional buyers like women and seniors.