The Real Reason You May See Ads The Next Time You Play Xbox

Advertisements in gaming are nothing new, but when it comes to console games, they’ve generally taken the form of character skins or tie-ins from other franchises. This is a far subtler approach than displaying ads in a video or even on a billboard, and it’s especially common to see in games like “Fortnite” or even “Super Smash Bros,” both of which tend to make their tie-ins a part of normal gameplay rather than pulling players out of the game for any amount of time.

According to one detail disclosed to Insider, only certain parties will be allowed to advertise in-game via a “private marketplace,” and if the report turns out to be true, Microsoft’s new program will only apply to free-to-play games. Furthermore, one of the sources behind the allegations indicates that Xbox’s new ad program will supposedly put 100% of the proceeds into the participating developer’s pockets. Microsoft has not confirmed these plans directly, but an unnamed spokesperson suggested to Insider that Bing data will not be used, citing concerns over consumer privacy. 

In any case, placing full-blown in-game ads for real products into any console game is inarguably a controversial move, considering that console gamers have historically taken issue with predatory monetization practices in video games, especially over the last few years. Currently, advertisers have the ability to purchase ads for display on Xbox’s dashboard. If the new ad partnership service goes live, it’s most likely to happen sometime in Q3 2022, according to Insider.