Microsoft is reportedly looking to allow advertisers to insert ads in free Xbox games. It is reported that this program will start in the third quarter of this year.
According to Business Insider, these ads can be displayed as billboards in a racing game. However, it was not possible to confirm whether these ads will be extended to avatar skins or video ads.
Interestingly, Microsoft reportedly does not intend to take a share of advertising revenue and is more interested in building an Xbox ad network, as it is said to be trying to identify which companies and advertising agencies to work with. Instead, ad revenue will be shared between the game developer and the ad company concerned.
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It is reported that Microsoft wants to give game developers the opportunity to make more money from their free games. It is trying to build an Xbox ad network in the 2018-2019 game, but plans have accelerated in 2020 due to the launch of the Xbox Series S | X.
It is reported that Microsoft also has some concerns about the potential reaction of this initiative from consumers, as players on consoles are not used to seeing ads in the game, unlike mobile players. For example, EA placed ads in the game for UFC 4, but removed them after a protest from fans.
The company also worries about protecting its customers’ data and keeping it out of the hands of other companies. As such, Microsoft reportedly has no immediate plans to allow advertisers to use its data collected by Bing and other sites and software to target Xbox players.
A Microsoft spokesman told Business Insider: “We’re always looking for ways to improve the gaming and developer experience, but we have nothing more to share.” Currently, ads are limited to places like the Xbox Dashboard.
In-game ads are not necessarily a new concept. Former President Barack Obama hosted commercials for EA games such as Burnout Paradise, Madden 09 and Skate when he campaigned to become the next commander-in-chief in 2008.
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George Young is a freelance writer for IGN. You can follow him on Twitter @yinyangfooey
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