Sources say Microsoft is working on a program to let brands showcase ads within free-to-play Xbox games. The ads would n’t disrupt gameplay and may appear on a billboard in a racing game, for example.
Microsoft is reportedly concerned that the ads could’irritate’ players, and is planning to build a’private marketplace’ to let only select brands into the program.
Sources told Insider that Microsoft does n’t intend to take a cut of ad revenue, and will instead allow the game developer and advertising company to share the funds. This would open up another stream of revenue outside of microtransactions.
The outlet does n’t know whether Microsoft has floated the idea to advertisers yet. Sources claim ads will start appearing on Xbox as soon as the third quarter of this year.
The Verge reached out to Microsoft with a request for comment. The company said it did n’t have any additional information to share beyond its statement to insider.
Ea games partnered with the Microsoft-owned advertising company massive in the mid to late 2000s. The company let companies place ads in Madden NFL, skate, NHL, and NASCAR franchises, as well as in Burnout paradise.
In-Game ads for real-life products, players expect an ad-free experience. This is likely the reason why Microsoft is reportedly rolling out the initiative for free-to-play games only.