Ad-chievement has been unlocked
Microsoft may be looking to insert more in-game ads into free Xbox games. A new report says the company wants to let advertisers place ads inside free Xbox games, which will go live in the third quarter.
Business Insider reports that this new program will add more games that brands can advertise and allow more developers to sell ad space. Their sources indicate that these ads could show up as billboards in a racing game, for example. Insider didn’t find out if other options, like cosmetic skins for characters or video ads in the hallways, were active. They also couldn’t confirm whether Xbox was recommending the service to advertisers.
New revenue
According to the report, Microsoft may not be interested in taking a cut of ad revenue from Xbox ads in games. Instead, the revenue will be shared between the game developer and the adtech company that places it. One of Business Insider’s sources surmised that Microsoft wants to provide more monetization opportunities for developers of free games. Their sources also say Microsoft is worried about the potential backlash of the ad insertion. They say Microsoft could try to create a marketplace where only select brands can insert ads, in a way that doesn’t disrupt gameplay.
In a comment to Business Insider, a spokesperson did not confirm the plan. The spokesperson said that Microsoft is “always looking to improve the experience for players and developers, but we don’t have anything more to share.”
Xbox currently allows some form of advertising in its games. Ads already exist on Xbox consoles. And in-game ads are nothing new to the game, although they don’t always receive a favorable response. Look at fan reactions to in-game ads in Electronic Arts’ UFC 4.
That’s a tough area to get into for Microsoft. The report says the plan will come to fruition later this year, and we’ll see if it succeeds.
