Microsoft is reportedly working on a program that will allow brands to serve ads in free-to-play Xbox games. Business Insider reports say that Microsoft wants to simplify the platform for in-game advertising in free-to-play Xbox games.
A new report indicates that the company wants to allow advertisers to run ads on free-to-play Xbox games that launch by the third quarter. If the new report turns out to be accurate, we could see ads in Microsoft’s free games by the end of the year. Microsoft may not be interested in cutting Xbox in-game advertising revenue, according to a new report. According to a report by BusinessInsider, Microsoft is working on an ad system for Xbox games, expanding the capabilities of Microsoft’s advertising technology and allowing advertisers to show ads in certain games.
You may start to see more ads in free-to-play Xbox games as Microsoft looks to advertising companies and agencies to help developers sell more ad space. As for why Xbox is doing this, Microsoft apparently wants to create an “in-game Xbox ad network” to help developers create free games. Microsoft does not plan to generate a portion of the new ad revenue, but will instead focus on building a strong network and platform to give free-to-play game developers more ways to connect with potential advertisers.
Microsoft may want to use this as a way to get more developers of free-to-play games on the Xbox, as it will open up another source of income outside of microtransactions. Microsoft is said to be aware that the integration may cause backlash from some players, especially due to the stigma that free-to-play games are currently experiencing regarding microtransactions and revenue streams. Microsoft also reportedly has some concerns about a potential backlash that could feel like rent from consumers, as console players aren’t used to seeing in-game ads, unlike mobile players.
A similar example recently occurred when Meta added in-game ads to one of their Quest VR games to test a system that could be implemented in other games in the future. Sources say Microsoft is currently in talks with ad techs to create a new ad platform that will serve ads in certain games, namely free-to-play games like Fortnite, Warzone, and Rocket League.
In-game ads for real products may have been new at the time, but some next-gen games are almost $70 and gamers expect them to be ad-free — which is probably why Microsoft is launching this initiative for free-to-play. In-game advertising isn’t new to games, though it hasn’t always received a positive response.
