Virginie Chesnais serves as the chief marketing officer at Happydemics, an ad‑tech analytics firm. For years, many gamers have been skeptical about advertisements that appear within games, and their concerns are not unfounded. In‑game ads have earned a mixed reputation, often because they redirect users to unrelated sites or apps, present misleading content, or feature close buttons that are hard to locate—issues that generate frustration among players. A recent study conducted by eMarketer highlighted that 52 % of gamers would abandon a session if they encountered several intrusive ad elements.
Losing half of an audience at the moment you are trying to engage them is hardly an effective approach. Nevertheless, advertisements do not have to be detrimental. The same research indicated that one in five gamers would actually increase the frequency with which they play a title if the in‑game ads were of high quality and relevance. With Xbox currently piloting an ad‑supported game‑streaming service and the overall cost of gaming steadily climbing, well‑crafted ads could find a receptive environment within the console ecosystem.
The argument for incorporating an ads‑for‑games model is more compelling than it might initially appear, and it is already partially validated by the success of linear media platforms. Services such as Netflix, Disney+, and other streaming providers have demonstrated that offering both ad‑free and ad‑supported tiers can generate substantial revenue while maintaining a consistent user experience.
Should Xbox’s experiment succeed, it would not only preserve its existing subscription base but also unlock a fresh, previously untapped income stream—something the brand could greatly benefit from at this juncture. This development matters because console gaming is increasingly being positioned as a premium offering. Prices for games, consoles, peripherals, and downloadable content continue to rise, making it more difficult for the average consumer to justify the expense.
This financial barrier limits the reach of gaming to a narrower demographic. Xbox itself has stated that, when executed correctly, advertising can lower the cost of entry for gamers.
The mobile gaming sector already provides evidence that ad‑supported tiers can invite new players without requiring large upfront payments. By extending a similar model to console gaming, Xbox could make high‑quality experiences more affordable. Importantly, participation would remain optional. Players who prefer an uninterrupted experience could continue to pay for an ad‑free subscription, while those willing to tolerate short commercial breaks could enjoy a reduced price point.
This two‑tier system aims to retain loyal fans while simultaneously expanding accessibility for newcomers. Although there is no concrete survey data on this specific initiative yet, it is reasonable to assume that a large majority of gamers would accept a 30‑second advertisement if it granted them an hour of gameplay on a beloved or new title. Xbox likely has internal data supporting this hypothesis. Happydemics analyzed 285 in‑game campaigns across the United Kingdom and North America and found that in‑game advertisements consistently outperformed television, social media, and other online formats in terms of recall and attribution.
Players were more likely to remember the brand behind an ad that appeared within a gaming environment and to correctly associate it with the advertiser. Xbox’s “around‑the‑game” approach—placing ads before the gameplay begins rather than embedding them within the experience—adds another layer to this picture. Our research indicates that pre‑game formats generate higher recall and attribution scores compared with intrinsic in‑game placements.
While traditional in‑game ads excel further down the funnel—boosting brand image, consideration, interest, and likeability—pre‑game spots avoid disrupting immersion, which is crucial for both players and advertisers. The distinction matters because, although we can often recall ads seen on television or scrolling through social feeds, those memories do not always translate into clear brand connections. Gaming appears to occupy a unique position where ad exposure more readily converts into brand awareness, a factor likely driving companies like Xbox and EA to explore ad‑based monetisation.
Xbox has emphasized that its ads will not be intrusive. By delivering commercials before the game launches, the company aims to preserve the immersive quality of the play session. This strategy benefits advertisers as well; they receive a captive audience that is primed for the upcoming experience, rather than being interrupted mid‑action.
Relevance will be key. No gamer wants to see an advertisement for cat food when they do not own a cat, or a promotion for a game they have already completed.
Contextual, targeted ads that align with the player’s interests will help prevent negative reactions and increase the effectiveness of the campaign. Nevertheless, Xbox is navigating uncharted territory. The first unknown is how players will respond to pre‑game advertising; the second is whether the revenue generated will justify a long‑term commitment to the model.
The decision to explore ad‑supported streaming reflects the boldness of Xbox CEO Asha Sharma, who has demonstrated a willingness to experiment with unconventional strategies. Time will reveal whether the approach delivers the expected financial and user‑experience outcomes. Historically, many gaming ad models have relied on a “watch an ad, earn an extra life” mechanic. Xbox’s proposal is different: it asks players to view an ad in order to access a game they already own.
Our existing data set does not directly address this scenario, leaving an open question about its reception. However, broader research on ad‑format perception shows that when participants recall an advertisement, they frequently describe the experience as “non‑intrusive” and “immersive.” If Xbox—and potentially other platforms—aim to make gaming ads successful, these two attributes will be essential performance indicators.
In my view, Xbox will not be the first nor the last company to trial such a strategy. Advertising within games has existed for years, but often without the player’s convenience as a primary focus.
Should Xbox manage to implement a model that respects the gaming experience while delivering value to advertisers, it could pave the way for similar initiatives across the industry, ultimately making video games more accessible to everyday players.