Xbox may include ads in its free-to-play games. Here’s where all that revenue could go… hint: It’s not to Xbox!
In an effort to boost video game revenues, its reported that Microsoft Xbox may begin including advertisements in its free-to-play games. Already a popular option for mobile game developers, in-game advertising is expected to generate roughly $13.9 billion, annually, by 2028.
Interestingly, although it has not been confirmed, its rumored that Xbox will not take a cut of the ad revenue, but rather leave the revenue stream to developers in an effort to incentivize better, more interactive video game development.
In recent years, Microsoft has made substantial moves to increase its market share in the video game industry. Its most recent acquisition of Activision-Blizzard is just one critical component.
Now, should the company fully incentivize developers with 100% of the ad revenue, we may see Xbox corner more of the market as it could demand exclusivity of popular titles in return. And with incentives as great as these, it may be a no brainer for the creatives.
Of course, advertisements are just one component of video game monetization. Outside of direct game sales, transactions in digital items, referred to as microtransactions, like skins, tokens and uplevels have generated an estimated $33.4 billion, globally.
However, the next generation of monetization may come in the form of in-game eCommerce. This revenue stream would be derived from the sales and transactions in real-world goods and services, not simply digital items.
The global eCommerce market is currently worth about $5.5 trillion. By incorporating eCommerce into gaming, the industry could see revenues balloon to levels never before imagined.
But in order to make in-game eCommerce a reality, game developers may need to incorporate an eCommerce platform in their games, as currently utilized technology doesn’t seem up to the task.
Discover the company with patents in in-game eCommerce, HERE
Or read more about Xbox’s plan to include advertisements in free-to-play games, HERE
Source: https://screenrant.com/xbox-free-games-might-get-ads/