Virginie Chesnais serves as chief marketing officer at the ad‑technology analytics firm Happydemics. For many years, gamers have looked at in‑game advertising with suspicion, and the wariness is understandable.
The reputation of ads in video games is mixed at best; players often encounter redirects to unrelated websites or apps, misleading creative, or hide‑away close buttons that are difficult to locate, all of which generate frustration. A recent study from eMarketer highlighted that 52 % of respondents would stop playing a title if they ran into multiple intrusive ad elements.
Losing half of an audience the moment you try to monetize them is hardly a winning tactic. However, the same research also revealed a more optimistic side: one in five gamers said they would actually play a game more often if the in‑game advertisements were high‑quality and well‑integrated. This insight arrives at a moment when Xbox is piloting a new ad‑supported game‑streaming service, and the overall expense of gaming continues to climb. High‑caliber advertising could therefore find a receptive home within the gaming ecosystem.
The argument for a hybrid "ads‑for‑games" model is stronger than many assume, and it already has a precedent in linear media. Services such as Netflix, Disney+ and other video platforms have demonstrated that offering both ad‑free and ad‑supported tiers can generate substantial revenue while keeping a broad subscriber base.
If Xbox’s experiment succeeds, it could preserve its existing paying customers and unlock an entirely new, previously untapped income stream—something the brand could certainly use right now. The relevance of this approach is amplified by the fact that console gaming is increasingly being positioned as a premium product.
Prices for new consoles, flagship titles, accessories and downloadable content have all risen, creating a financial barrier for the average player. Xbox itself has acknowledged that, when executed correctly, advertising can help lower the cost of entry for gamers. Mobile gaming already illustrates how ad‑supported tiers can provide a gateway for players who are unwilling or unable to make large upfront purchases.
Importantly, any advertising model Xbox adopts would be optional. Players who prefer an uninterrupted experience could continue to pay a subscription fee, while those who are comfortable with occasional ads could choose the lower‑cost tier. By offering a two‑track system, Xbox hopes to keep its loyal fan base happy while simultaneously making games more approachable for newcomers. Although concrete survey data on this specific rollout is not yet available, it seems reasonable to bet that most gamers would tolerate a 30‑second commercial if it meant gaining an hour of playtime on a favorite or brand‑new title.
Xbox’s own analytics are likely to confirm that assumption. Happydemics’ research, which examined 285 in‑game campaigns across the United Kingdom and North America, found that in‑game advertisements consistently outperformed TV, social and other online formats in terms of ad recall and accurate brand attribution.
In other words, players are more likely to remember an ad they saw while gaming and correctly associate it with the sponsoring brand. This is where Xbox’s "around‑the‑game" strategy—showing ads before a session begins rather than embedding them within the gameplay—becomes intriguing. The data indicate that pre‑game placements generate higher recall and attribution rates compared with intrinsic in‑game spots. While traditional in‑game ads excel further down the marketing funnel—boosting brand image, consideration, interest and likability—pre‑game ads avoid disrupting the immersive experience, which is a key concern for both players and advertisers.
For Xbox, the challenge will be to keep these pre‑game spots relevant. Nobody wants to see a commercial for cat food when they don’t own a cat, or an advertisement for a game they have already finished.
Contextual, well‑targeted ads can prevent players from abandoning a session at the sight of an irrelevant message, while also giving brands a premium platform to reach a highly engaged audience. Nevertheless, Xbox is venturing into largely uncharted territory.
It must gauge how players react to the presence of ads and determine whether the revenue generated will justify making the model a permanent fixture. The move reflects a bold, risk‑taking mindset from Xbox CEO Asha Sharma, who appears willing to experiment with new monetisation pathways. Historically, many gaming ad campaigns have followed a "watch an ad, earn an extra life" model. Xbox’s proposal is different: users would watch an ad to access a game they already own, rather than to receive a small in‑game reward.
Existing data do not yet reveal how this will be received, but broader research on ad format perception shows that descriptors such as "non‑intrusive" and "immersive" rank among the most positively viewed attributes. If Xbox can deliver ads that feel seamless and respect the player’s experience, those two metrics will be critical to success. Looking ahead, I anticipate that Xbox will not be the sole pioneer of this approach. Advertising has been part of gaming for decades, but it has rarely been designed with the player’s convenience as the primary focus.
Should Xbox manage to strike the right balance, it could pave the way for other publishers to adopt similar models, ultimately making video games more affordable and accessible for the everyday gamer.