Microsoft May Add Branded Advertising to Free Xbox Games

Microsoft is developing a program to add advertising inside free games on Xbox, Business Insider reports. According to the sources of the publication, its release is scheduled for the third quarter of 2022.

The principle is as follows – with the help of special tools, developers will be able to implement advertisements inside their games. For example, to place them on virtual advertising banners.

At the same time, Microsoft intends to add ads carefully and without serious interference in the gameplay.

The company will selectively approach the selection of advertisers. Only a limited number of brands within the “private marketplace” will be able to place ads.

Microsoft will also take care of protecting user data so that advertisers cannot use it.

According to Business Insider sources, the company will give up its part of advertising revenue. They will be divided between developers and advertisers. Microsoft itself prioritizes the development of the Xbox advertising network and the support of developers who create free-to-play games.

“Microsoft’s desire to introduce advertising into the Xbox environment is not surprising at all. The acquisition of Activision can create a real content fortress of mobile, console and PC games with favorable conditions for promotion and monetization. And this will require an advertising platform,” said analyst Eric Seufert in his blog.

At the moment, there have been no official statements about the advertising program. The company’s representatives limit themselves to general phrases and claim that “they are always looking for ways to improve the experience of players and developers.”