Microsoft may allow ads in free-to-play Xbox games

(Image: Microsoft Xbox One Controller)

Microsoft is reportedly looking to sell ad space in free-to-play Xbox titles. The tech giant is seeking help from adtech and ad agencies to help developers sell more ad real estate in games, the Business Insider has reported.

The changes may come into go into effect as early as Q3 2022, sources told the publication. Company insiders said advertisements may be placed strategically, for instance on numerous billboards present in the racing games, or in football games, where companies can advertise on the signboards.

The insiders also said Microsoft was worried about the user experience and probably won't make ads too intrusive. It's also taking privacy seriously by reportedly refusing to share consumer data with advertisers.

Microsoft wants to build an in-game ad network that will support developers who publish free-to-play titles on its Xbox games marketplace. The Redmond software and hardware giant will also not be making any money from these ads. The revenue would be split between the developer and the ad agency.

Responding to The Gamer, Microsoft said that it was "always looking for ways to improve the experience for players" but doesn't "have anything further to share".

In other news, Microsoft may soon introduce a family plan for its Xbox Game Pass subscription service. The plan would be cheaper than five individual accounts and the company will manage family subscriptions using Office 365's management system, sources said.