Joining the ranks of other casual game sites, Microsoft will share advertising revenue with developers of games for the MSN Games site (formerly The Zone). The program could increase the number and quality of free, advertising-supported games available on the site, and this business model might eventually be extended to other Microsoft venues for casual games, such as the Xbox Live Arcade and Windows Live Messenger. (Casual games are defined as games that are simple to learn, can be completed in a single session, and are generally small enough to be quickly downloaded or played directly over a broadband Internet connection.)

Developers of free games for MSN Games and other casual gaming sites are usually paid an upfront licensing fee, with larger payments for exclusive games, and Microsoft will continue to offer these contracts. In addition, under the Ad-Share Program launched in Feb. 2007, developers for MSN Games can receive 10% of the revenue from advertisements displayed during their games—for example, advertisements might be shown adjacent to the game during game play, or in the loading screens that appear at the beginning of new levels. Developers who add certain other features, such as localization, Entertainment Software Ratings Board ratings, and at least 10 hours of Web-based game play, will get 20% of the advertising revenue associated with their games.

Microsoft claims that MSN Games draws about 13 million unique users per month and that a developer of one of the top five games on the site could conceivably earn US$250,000 per year, based on current advertising rates. Several other casual game distributors, including Atom Entertainment (Shockwave.com), Big Fish Games, and RealNetworks, have similar programs for sharing advertising revenue with developers.

To enroll in the program, developers should contact their Microsoft distributor for Game Developer Kit details on both tiers of the program; independent developers can e-mail MCG@microsoft.com for more details.

Microsoft's casual games business is described in "Casual Games Could Boost 360" on page 28 of the Dec. 2005 Update.