Microsoft is gearing up to introduce in-game ads in free-to-play Xbox titles. That’s according to a new report from Business Insider. The in-game ads would be a way for game developers to make more money from free-to-play games and Microsoft wouldn’t be taking a cut of the revenue. According to the report, Microsoft intends to launch this ad program in the third quarter of this year.
Business Insider gives the example of real billboard advertisements appearing in racing games, though it isn’t clear how wide the program would extend and whether there would be video ads or avatar skins as well. The scope of the ads will be important to console gamers who are quick to criticize this type of monetization. While ads that are unobtrusive and fit the game world, like billboards in racing games, may not draw much ire anything that interrupts gameplay or becomes obtrusive will likely receive significant backlash.
Microsoft is reportedly aware of the potential backlash that this advertising system could generate from console gamers. If the new in-game advertising system is only implemented in free-to-play games then that could be acceptable to gamers. However, there’s also the chance that it is seen as a slippery slope into advertising in paid games, something which publishers have tried in the past. In that case, the negative reaction will likely be severe.
Microsoft is also reportedly concerned with protecting consumer data and doesn’t want other companies to get their hands on its customers’ data. Microsoft won’t be allowing advertisers to collect data from Xbox or Microsoft software in order to target advertisements at players.
Microsoft already includes ads on the Xbox dashboard which is something that gamers didn’t like when the company first started. However, it has become an accepted practice in recent years. At least in the sense that people don’t really care to complain anymore.
