Microsoft is working on a program that will allow brands to display advertisements within free-to-play Xbox games. According to sources familiar with the situation, the ads would not interfere with gameplay and could appear on a billboard in a racing game, for instance.
It's unclear how else Microsoft plans to introduce adss, such as having them appear as avatar skins or films inside gaming lobbies. However, as reported by Insider, Microsoft is concerned that the advertising may "irritate" players, and is preparing to create a "secret marketplace" to allow just certain businesses into the program.
Microsoft will not receive a part of ad revenue, but will instead share the cash with the game developer and advertising company. It's possible that Microsoft simply wants to exploit this as a method to entice more free-to-play game creators to the platform, as this would open up additional opportunities.
According to Business Insider, the megacorp is "going gingerly" with its intentions, but is considering developing "a 'secret marketplace,' where only select brands can insert adverts into games without disrupting the gameplay experience."
"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.
The Verge contacted Microsoft for comment, but the company said it didn't have any additional information to share beyond its Insider statement.
The program may irritate gamers who are concerned about advertisements for real-world products appearing in fictional universes. The emphasis on free-to-play titles, on the other hand, could be critical.
This could assist developers in generating revenue from free games without relying too heavily on paid content such as skins and season passes. This, in turn, may persuade developers to create Xbox-centric games rather than those for the PlayStation or Switch.
Since the program's inception nine years ago, Microsoft has reported that ID@Xbox has assisted its indie partners to earn $2.5 billion in royalties.
The results "have surpassed our wildest aspirations," according to Microsoft, with independent developers earning more than $2.5 billion in royalties and ID@Xbox partners' overall revenue on Xbox nearly doubling in the last three years. "These are amazing statistics," Xbox remarked at the time. "It testifies to the power of independent developers."
There's more good news for Xbox fans: it appears that the company will hold an E3-style showcase later this year.
