Microsoft announced Wednesday that it will be making an equity investment in VR-1. The move is based on the companies' two-year relationship and the success of VR-1's two premium games on Microsoft's online gaming service. Microsoft made the investment using previously committed royalty advances to VR-1.

　　Microsoft will also commit to a number of new marketing deals meant to promote VR-1's Fighter Ace. The OEM deals will allow Microsoft to distribute roughly 15 million copies of the game to various manufacturers.

　　"We're very excited about the aggressive promotion opportunities Microsoft has planned for Fighter Ace, which could ultimately result in a significant number of new subscribers for Fighter Ace and the Zone," said Mike Moniz, president of VR-1.

　　"Our decision to invest in VR-1 was a smart and easy one," said Adam Waalkes, product unit manager for Microsoft's online gaming service, the MSN Gaming Zone. "After working closely with VR-1 for more than two years, we know that VR-1's games and technology are top-notch. VR-1 has proven it has the capacity and creativity to develop some of the most compelling and fun online games available, and we look forward to our continued relationship."