A report in Insider, quoting sources, claimed that the ads will not disrupt the game and would rather appear on a billboard in a racing game.
Microsoft is also concerned that the ads could “irritate” players, and is planning on building a “private marketplace” to let only select brands into the new program.
According to the report, Microsoft will not use the data it collects from Bing search engine and other services for targeted ads on Xbox gaming service.
“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 Insider.
The console game users have witnessed in-game advertisements in the past too, like EA Games allowing ads in Madden NFL, Skate, NHL, and NASCAR franchises, along with Burnout Paradise.
Meanwhile, Microsoft recently issued an important update for Xbox Series X and Series S consoles that would make it capable of downloading system as well as game updates while in the Energy Saving mode.
Microsoft is also planning to introduce an Xbox Game Pass family plan this year.
The family plan option will reportedly provide access to Xbox Game Pass for five players and will be priced cheaper than the cost for separate accounts.
Microsoft will reportedly integrate its Family Account system, which is what the company also uses for its Microsoft 365 Family subscriptions, reports The Verge.
Microsoft currently offers Xbox Game Pass or PC Game Pass for $9.99 per month.