Xbox 360 platform holder Microsoft is to close its in-game ad agency Massive Inc, according to a report by Media Week.
The site reports that general manager JJ Richards is already on the hunt for another job while technology experts from the company are in the process of being reassigned.
The move comes after several months spent pursuing a possible buyer.
Microsoft acquired the firm in 2006 for a fee estimated to be between $200-400m amidst predictions of a booming market for in-game ads. However, since then Xbox Live has emerged as a far more viable platform for digital ad sales.
However, earlier this year EA confirmed that it intends to bring its in-game ad operations in-house, delivering a huge dent to Massive's business.
MCV has contacted Microsoft for clarification.