They are, according to Microsoft's "vision" for its pay-per-click service adCenter. With hundreds of millions of Xbox Live, Hotmail, and MSN Messenger users data at their fingertips, they feel they can offer better user data than Google or Yahoo. Microsoft is currently lagging way behind in online ad sales, with its MSN Internet division pulling in a mere $1.4 billion.

From the Reuters article:

Microsoft envisions adCenter to one day be a one-stop shop for advertisers to gather information then buy ads on search results, Microsoft-related sites and services, non-Microsoft sites, mobile phone software or even online Xbox video games.

I don't think this will come as a surprise to anyone, but how will it affect Xbox Live paying subscribers? Will Microsoft offer a tiered model, with free, or lower cost subscription models to users who accept ads? Should we just forget about playing games and not being reminded to drink Pepsi or eat Corn Nuts?

Microsoft takes on Yahoo, Google for Web ad dollars [Reuters]

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