%Microsoft ($MSFT) is working on a program that will show advertisements in %FreeToPlay Xbox video games.
Multiple media reports say that the ads won’t be intrusive or disrupt gameplay and may appear on a billboard in a car racing video game, for example.
Some executives within Microsoft are reportedly concerned that the ads could “irritate” some players and is planning on building a “private marketplace” to let only select brands advertise on its Xbox video games.
Additionally, Microsoft doesn’t intend to take a cut of the ad revenue that’s generated and will instead allow game developers and advertising companies share the funds.
Microsoft might be planning to use this to attract more developers of free-to-play games to its Xbox platform.
In-game advertisements on console games aren’t a new concept — game companies experimented with them in paid games back in the late 2000s. %ElectronicArts ($EA) partnered with the now-defunct Microsoft advertising company Massive, letting companies place ads in sports franchise games such as the Madden NFL football and NHL hockey games.
With most video games now costing $70 U.S. or more, players expect an ad-free experience. This might be why Microsoft is reportedly rolling out its latest ad initiative for free-to-play games only.