Microsoft is planning to bring advertisements to free-to-play Xbox games and is currently evaluating adtech companies that could help manage the new in-game ad inventory and work with ad agencies, according to a report. The purported move would allow developers working on free games to sell ad space. It would also be likely to help Microsoft attract more developers to build new free-to-play games for Xbox, as they would get ad revenue through the new model.
Citing two people familiar with the development, Insider reports that Microsoft is working on a way to allow advertisers to place ads within free-to-play Xbox games. The ads are said to be aimed at not disrupting the user experience and would show up as, for instance, digitally rendered billboards in a car racing game.
It is unclear whether Microsoft would offer other types of in-game ad units, such as avatar skins and video ads. However, the report suggests that the ability to serve ads through free-to-play Xbox games could go live as early as the third quarter of 2022.
Microsoft is said to have no plans to take a cut of ad revenue from this model, though the purpose of the new ads seems to be making the Xbox platform more appealing to advertisers.
Ad revenue will be shared by game developers and adtech companies placing ads in free-to-play games, sources said.
Initial talks to build an in-game Xbox ad network are said to have started around 2018 or 2019, though the process reportedly accelerated in recent months thanks to the launch of the latest Xbox models — Xbox Series S and Series X — and the growth of free-to-play titles on the platform.
One of the prime concerns that Microsoft is said to have about this programme is the potential for gameplay disruption. The
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