It hasn’t been the best year for in-game ad networks, with major layoffs at Microsoft’s Massive and a poor prospects forcing IGA Worldwide to put itself on the block. But Double Fusion has nevertheless managed to raise a new funding round led by Jerusalem Venture Partners. The company isn’t saying how much it got.
In a sign that Double Fusion may not be immune from the industry’s turmoil, however, the company has promoted Alex Sood, who had managed Double Fusion’s Japanese subsidiary, to CEO. He is replacing long-time CEO Jonathan Epstein. A spokeswoman tells us that Epstein — who founded GameSpot (later sold to CNET) — is leaving to “pursue passions outside of gaming.”
Analysts still believe in-game advertising will ultimately be a billion dollar-plus business. But the industry has not grown nearly as quickly they had hoped. Screen Digest said last May that it expected in-game ad spending would top $1 billion by 2014. In 2006, there were expectations that the market would be bigger than that this year.
Double Fusion — which serves ads in titles from THQ (NSDQ: THQI), Eidos, and Midway, among others, on the PS3 — has raised more than $36 million. The company’s most recent round was in August 2007. Jerusalem Venture Partners incubated the firm; other investors include Time Warner (NYSE: TWX) and Hearst.

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