Microsoft Planning To Bring Ads To Free-To-Play Xbox Games

Last Updated on April 18, 2022 by Anu Joy

Microsoft is reportedly working on a new feature nobody asked for—ads for free-to-play Xbox games. The tech giant is said to be building an advertising program which will allow “select brands” to buy ads that will appear in these games.

According to Business Insider, Microsoft wants to build a system for brands and advertisers to buy and place ads in free-to-play Xbox games. The publication’s sources are supposedly involved with the ad program’s planning and negotiation process. They say that the ads could make their way into games as a part of digital billboards in racing or open-world adventure games.  

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The report notes that Microsoft is concerned that the ads could “irritate” players and disrupt game play. To avoid the ire of gamers, the company is reportedly working on a “private marketplace” that will only allow select brands into the program.

Moreover, the firm is trying to please game developers and advertising companies as well, by choosing not to take a commission on ad revenues. It’s likely that the corporation wants to lure in more developers of free-to-play games to Xbox so that it can bag more revenue streams. Microsoft assured that it doesn’t plan on using the data it collects from Bing and other services for targeted ads.

Do note that the company already sells limited ad space on its consoles by way of dashboard ads and in-game ad deals via third parties. Games such as Saints Row 2 and Mercenaries 2 have also featured real-life ads on billboards. With free-to-play games reaching a wider audience on consoles and younger gamers dodging conventional advertising platforms such as TVs, many companies are looking to insert ads in video games. Moreover, they’re a lucrative option for advertisers since it’s impossible to install adblockers on the platform.

Although the report doesn’t mention if Microsoft has laid out its new ad programme to advertisers yet, its sources note that ads will come to Xbox free-to-play games by the third quarter of this year.