Microsoft files patent for "ad-credit" system to show ads on PC and Xbox without disrupting gameplay

Microsoft has patented an innovative system aimed at integrating advertisements into PC and Xbox gaming experiences without interrupting gameplay. The patent, filed earlier this month, is designed to identify natural breaks in the action, such as loading screens or mission endings, before briefly pausing the game to display an advertisement.

During these ad breaks, gameplay and controls are temporarily suspended to prevent players from losing progress. Upon completion of the advertisement, players receive a credit, granting them a period of ad-free play that can last anywhere from 15 minutes to an hour or more. The system also considers game progression or specific events, like completing a level or finishing a multiplayer match, to determine uninterrupted playtime.

Reports from 2022 suggested that Xbox was exploring in-game advertisements for free-to-play titles on its cloud streaming service. Microsoft initiated testing of ad-supported game streaming on Xbox in July of this year, with participants from the Xbox Insider Program able to opt for free, one-hour ad-supported game streaming sessions.

Earlier this month, Xbox announced a limit on cloud gaming hours for Game Pass subscribers, starting in November 2026, with Essential receiving five hours, Premium ten, and Ultimate fifteen per month. Subscribers may purchase additional cloud playtime via the Xbox Store if these limits are reached. This week, the company disclosed additional layoffs affecting 268 positions across Halo Studios, other first-party developers, and Xbox Game Studios.

These cuts include the transfer of the UK studio Rare and Age of Empires developer World s Edge to Activision, which will also handle the Halo franchise. Obsidian Entertainment will now operate under Bethesda, while Playground Games and Turn 10 have merged into a single studio.