According to Insider, a report has revealed that Microsoft is working on a program that will allow brands to display ads on free Xbox games.
For example, sources close to the situation told Insider that advertisements on the billboard of the racing game would not disrupt the gameplay.
It was not immediately clear how Microsoft planned to implement ads such as displaying tokens or in-game videos, but as Insider points out, Microsoft is concerned that the ads could “irritate” players and plans to create a “private” one. Only selected brands will be allowed in the “Market” program.
Sources told The Insider that Microsoft did not want to spend a portion of its advertising revenue and would allow the game developer and advertising company to share the money instead.
Microsoft may want to use it, and it could be used as a way to get free game developers on the platform, as it will open up another revenue stream outside of micro transactions.
According to Insider, data collected from Microsoft Bing and other services will not be used to target advertising on the Xbox.
“We are always looking for ways to enhance the experience for players and developers, but we have nothing else to share,” Mikey’s spokesman said in a statement to Insider.
Game advertising is not a new concept in console games – game companies tested it on paid games from the mid – 2000s until the late 2000s.
At the moment, EA Games has partnered with Microsoft-owned advertising agency Massive (which is now defunct), allowing companies to place ads on Madden NFL, Skate, NHL and NASCAR owners, and Burnout Paradise.
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