Microsoft has decided to share the Ad revenue with casual game developers.The ads are shown during the game or while loading the game & other ads in the MSN site generate nearly $250,000 annually which is shared among the MSN casual game developers.

“Casual game developers traditionally operate on a limited revenue model, typically receiving a set fee from downloadable titles or a small royalty associated with game subscriptions,” said Chris Early, studio manager for Microsoft Casual Games at Microsoft. “Now, by sharing in-game advertising revenue, we’re allowing a more diversified business model that gives our partners more resources to create new, innovative titles for the 13 million people we see every month on MSN Games.”

The move is made to encourage the casual game developers to make more innovative games. The developers receive 10 percent of the ad revenue that is shown in their game.