We got a new clue about Xbox's ad ambitions
Microsoft's Xbox is slowly expanding its ad business. A new patent outlines a system that would find appropriate breaks in gameplay to show an ad.
Microsoft has filed a patent outlining a concept for in-game advertising on Xbox, according to a recent filing from Patentlyze. The patent describes a content management system that would detect breaks in streaming gameplay, such as completing a level, to insert ads. Gamers who watch the ads could be rewarded with credits for uninterrupted gameplay.
This idea draws inspiration from the popular "rewarded video" format used in mobile gaming apps, where viewers are offered incentives like extra lives or virtual currency in exchange for watching ads that typically command higher prices. Vincent Tessier, CMO of the gaming company 52 Entertainment, believes that Xbox is taking a page from the mobile gaming industry, where rewarded videos are well-received by users.
The patent includes diagrams that showcase the tech behind this concept. While Xbox's ad business has been expanding at a slow pace, the company is cautious about not disrupting the gaming experience and is exploring ways to make ads less intrusive. In July, the gaming giant introduced a free cloud gaming service that allows users to play games by watching ads before accessing the queue.
However, this service remains a niche option and is unlikely to drive significant growth in Xbox's ad business. The push for in-game advertising comes as Xbox aims to boost its profit margins under the leadership of new CEO Asha Sharma. The Microsoft gaming division has downsized its workforce and is actively seeking methods to increase profitability.
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