GameIndustry.biz is reporting that Funcom has been awarded a $262,000 grant to help create Board with the World, a free-to-play social MMO based around extreme sports. Erling Ellingsen, the director of communications at Funcom, said the game will focus on snowboarding at first, but different sports may be added later.

"We also want this to be a social world rich with different types of media content and pop-cultural elements such as music, video and even fashion," he said, noting that Funcom expects to start working on an initial prototype in January 2010.

Fantasy MMO based on Conan the Barbarian? Check. Upcoming creepy MMO filled with conspiracy theories and secret societies? Check. Free-to-play extreme sports MMO? It looks like Funcom can now check that off their list as well.