PlayStation and Xbox reportedly adding in-game ads

Sony PlayStation and Microsoft Xbox users may need to prepare for the arrival of in-game ads as it’s rumored that both companies are developing a program to integrate the concept.

The rise of smartphones in the early 2010s gave birth to a new way of enjoying games — free-to-play experiences that could be enhanced or furthered through the use of microtransactions. One of the reasons they could be free-to-play is due to the presence of ads.

Lots of major media companies have adopted this strategy with YouTube being a big example of incorporating ads into their content.

Now, Sony and Microsoft seem to be following suit and adding in-game ads to free-to-play games to make even more money – alongside Battle Passes and paid cosmetics.

Ads coming to Sony and Microsoft games

According to Business Insider, both the blue brand and green brand are working on a sophisticated program that will allow people and businesses to buy in-game advertising space in free-to-play games.

“Three people who are involved in the plans said Sony is doing testing with adtech partners to help game developers create in-game ads through a software developer program. The idea is to encourage developers to keep building free-to-play games, which have soared in the pandemic, by giving them a way to monetize them, they said,” the report said.

The plan seems to indicate that the model will “launch by end of 2022,” and this is how they’ll work: “For the ads to appear like they’re part of the game, like digital billboards in sports stadiums. Formats could include ads that give viewers rewards for watching ads and promotions for in-game items like avatar skins.”

Developers and publishers do seem to be going full board with ads as it was recently announced that Roblox will soon be adding in-game ads to increase the earning potential for its creators.

It remains to be seen how big of an impact in-game ads will have on the industry and disruptive they may potentially be to PlayStation and Xbox, so we’ll have to stay tuned.