Microsoft is reportedly working on a program that will allow brands to display ads in free Xbox games, according to a report by Inside information. Sources familiar with the situation said Inside information that the ads will not disrupt the game and may appear on a billboard in a racing game, for example.
It is not immediately clear how Microsoft plans to implement ads, such as avatar skins or videos in game lobbies. But like Inside information notes that Microsoft is concerned that the ads may “irritate” players and plans to build a “private market” to allow only selected brands in the program.
More sources said Inside information that Microsoft does not intend to take a reduction in advertising revenue, but will instead allow the game developer and advertising company to share the funds. Microsoft may just want to use this as a way to attract more free game developers to the platform, as this would open up another revenue stream outside of microtransactions.
According to Inside information, Microsoft will not use the data it collects from Bing and other services for targeted Xbox advertising. The publication also does not know whether Microsoft has yet proposed the idea to advertisers, but its sources say that the ads will begin appearing on the Xbox immediately after the third quarter of this year.
“We’re always looking for ways to improve the gaming and developer experience, but we have nothing more to share,” a Microsoft spokesman said in a statement. Inside information. On the edge asked Microsoft for comment, but the company said it had no additional information to share other than its statement to Inside information.
Console gaming ads are not a new concept – gaming companies experimented with them in paid games well into the mid to late 2000s. At the time, EA Games was partnering with the (now defunct) Microsoft-owned advertising company Massive, allowing companies to place ads in Madden NFL, Skates, NHLand NASCAR franchises, and in A paradise for burning. If you played any of these games at the time, you may remember seeing Obama’s digital commercials placed in digital sports arenas or on billboards. Holy Order 2 there were even real-life ads on billboards like the one on Netflix.
In-game ads for real-life products may have been new at the time, but with some next-generation games costing nearly $ 70, players expect an ad-free experience – which is probably why Microsoft is said to be launching the initiative for free. games. Most recently, EA tried to put an impenetrable full-screen ad UFC 4 in 2020, fans who paid $ 60 for the game were clearly unhappy, leading to the withdrawal of the ad from EA.
Updated on April 16 1:45 PM ET: Updated to add that Microsoft has no additional information to share On the edge.