Microsoft Files Patent for Contextual In-Game Ads

Microsoft has filed a patent application for an 'ad credit' system designed to deliver contextually relevant ads to players during natural stopping points in games. The system, described as 'contextually aware,' would determine when to launch a short 'promoted content' window to display branded promotions and reward players with more ad-free playtime.

The patent application, filed on September 3, builds on Microsoft's recent Xbox ad tests. In July, the company began testing free game streaming for users who watch ads instead of paying for a Game Pass subscription.

Xbox has seen major year-over-year drops in hardware revenue under new CEO Asha Sharma, leading to restructuring efforts, including job and studio cuts. Sharma aims to make Xbox feel 'seamless, instant, and worth the communities we serve,' by simplifying game development and distribution across platforms.