Microsoft Corp.'s Massive Inc. struck a deal with South Korean video game company Webzen Inc. that will allow the newly acquired advertising unit to place promotions in two of Webzen's upcoming titles.

Massive works by selling advertising slots created by the game makers -- as opposed to spots written into the gaming software -- to companies like Coca-Cola Co. and Honda Motor Co. Ltd.  With the company's technology, advertisers can run their online campaigns in specific geographic areas and for specific periods of time. This process will be used in the two games included in the Massive/Webzen deal: "Huxley," slated for a 2007 release, and "All Points Bulletin," scheduled for a 2008 release. Both games are set in virtual urban environments and are referred to as "massively multiplayer online games" that can support thousands of players at once.

Already, forecasts predict that game slot advertising could grow into a three billion-plus global market by 2010 because of its ability to bring together advertisers and the lucrative young male audience that tends to turn to the internet and online games rather than television and other traditional media outlets.

That online advertising has fostered growth at major internet companies such as Yahoo! Inc. and Google Inc. gives video game designers like Webzen hope for the increased revenue that will help stifle the rising cost of making increasingly sophisticated games and transform their industry.