Massive enables advertisers to place ads in computer games where gamers would expect to see them in real life, such as on posters, television screens and packaging.
Microsoft is also examining how it can use Massive's technology in non-gaming environments, such as in Windows Live and on MSN.
"Joining forces with Microsoft will allow Massive to deliver even greater benefits for advertisers, game developers and gamers through one of the world's largest, most comprehensive online networks," Mitchell Davis, the Massive chief executive, said.
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