Microsoft is reportedly considering placing advertisements in free-to-play Xbox titles. If true, this would be a significant change to the company’s stance on monetizing games with ads and microtransactions.
Microsoft is reportedly considering placing advertisements in free-to-play Xbox titles. The company has not yet confirmed the rumor, but it would be an interesting move for Microsoft to make.
What is the revenue model for a free-to-play game? In a perfect, bright, happy world, it would sell cosmetics or expansions and make a tidy profit, allowing it to update and develop for years, but Microsoft is also considering another revenue stream for Xbox games of this type: in-game adverts from certain businesses.
According to insider sources, Microsoft is considering incorporating Advertisements for real-world businesses into some free-to-play Xbox games, such as billboards in racing games, in a system similar to the current mobile advertising model. The corporations that would be able to acquire such digital ad space would be chosen from a “private marketplace” of carefully selected brands, ensuring that the advertising would not interfere with the overall gaming experience, and Microsoft would not receive a percentage of any ad money at first.
Political adverts promoting Barack Obama were placed to the Xbox 360 version of Burnout Paradise in 2008, and those with long memories will remember that Microsoft has done this previously. These commercials were created by the ad agency Massive Inc., which was bought by Microsoft in 2006, in what was Microsoft’s first effort into in-game advertising. However, the business model didn’t pan out, and Microsoft disbanded that part of the business in 2010.
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Microsoft reportedly considering placing advertisements in free-to-play Xbox titles. This is a rumor that has been circulating for a while now, but Microsoft’s Phil Spencer recently commented on the issue. Reference: xbox ads.
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