According to Business Insider, Micorsoft is working on letting advertisers insert ads into free-to-play Xbox games and will reportedly implement it by the third quarter this year.
Sources from Business Insider say that Microsoft doesn't intend to take a cut of ad revenue and instead, the company is more interested in building out its own Xbox ad network. The ads revenue will be shared between the game developer and the ad company. In other words, it wouldn't benefit Microsoft themselves.
Despite its plans, Microsoft has concerns about potential backlash from console players as they aren't used to seeing in-game ads, unlike mobile players.
Microsoft also has no immediate plans to let advertisers use consumer data collected from Bing and other sites to target players on Xbox.
"We are always looking for ways to improve the experience for players and developers but we don't have anything further to share," a Microsoft spokesperson told Business Insider.