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Feb
13
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So everyone’s buzzing about Microsoft buying Yahoo and I’ve been trying to work out what my opinion is. My first thoughts were that (in Search at least) it’s just one ‘also ran’ buying another ‘also ran’, nothing too inspiring. I still think that’s true but it’s worth underscoring the fact that Microsoft are betting their business on Search and in turn on advertising. Over the last few years Microsoft have started transitioning to a ‘Software as a Service’ model and services in general (think Xbox Live), this is clearly an important extension of that. A lot of people see this as a bid to rival Google in Search but if you start applying the advertising model to IM, Flickr and perhaps even gaming.
As an industry gaming has grown to be larger than both the movie and music industries and the power to be able to sell-through ads into the Xbox dashboard and even into billboards and scenery inside games could be a huge market. I’m not sure that we (the public) will find out but look for signs of an API allowing developers to integrate Yahcrosoft ads into games, the buzz about in-game ads has been building for a while but it’s been crying out for a standard for developers to work to, well – here it is. On top of all that remember that there’s plenty of other cool stuff in the deal including Flickr (note that things like this are exactly the reason I stayed away from Flickr). It’ll be a while before this actually make a difference but keep your eyes open…
This blog post has also been cross-posted on my specialist gaming blog, hosted on the Gamercast Network.