New news indicates that Microsoft is working on a program that will allow brands to display ads within free Xbox games, according to a report from Insider. Sources familiar with the situation said the ads would not disrupt gameplay and might appear on a billboard in a racing game, for example.
It’s still not clear how Microsoft plans to implement those ads, such as making them appear as avatars or as video clips inside game rooms. But Insider notes that the company is concerned that the ads could irritate gamers too much, and plans to build a private marketplace to allow only select brands to participate in the program.
The source indicated to the site that Microsoft does not intend to deduct part of the advertising revenue, and will instead allow game developers and the advertising company to share funds to support them financially rather than providing them for games for free. It is possible that the company would like to use it as a way to attract more free game developers to the platform, as this will open up another stream of revenue.
According to Insider, Microsoft will not use the data it collects from Bing and other services for targeted advertising on Xbox. It is also not known if the company has pitched the idea to advertisers yet, but its sources claim that ads will start appearing on Xbox in the third quarter of this year.
“We’re always looking for ways to improve the experience for players and developers but we don’t have anything else to share,” a Microsoft spokesperson told Insider. “Other sites that have reached out to the company seeking comment have attempted, but the company said it doesn’t have any additional information to share beyond its statement to Insider. .