Why Xbox's console ads could be a good thing for gaming | Opinion

High-quality ads could make Xbox's console ads beneficial for gaming, according to a recent study by eMarketer. Gamers are generally opposed to in-game ads due to their disruptive nature, with 52% stating they would quit playing if they encountered multiple disruptive ad features. However, a surprising 20% of gamers would play a title more frequently if ads were of high quality.

With Xbox currently testing its ad-supported game streaming service and increasing subscription costs, high-quality ads may prove effective in gaming. The ad-supported model has proven successful in linear media, with streaming services like Netflix and Disney generating revenue through ad-supported tiers. Xbox's approach could retain paid customers and unlock a new revenue stream for the brand, which needs it as console gaming becomes more premium.

Ad-supported tiers can make gaming more accessible to newcomers while allowing players to watch 30-second ads if they choose, through a paid subscription fee. Xbox's ads will be pre-game, sitting outside the game environment, which could have a clear edge on ad recall and attribution compared to intrinsic in-game placements. By providing relevant and non-intrusive ads, Xbox can maintain an immersive experience for players while giving brands the opportunity to reach new audiences.

Only time will tell if this strategy proves successful, but Xbox CEO Asha Sharma's willingness to take risks suggests a promising direction for the future of gaming ads.