The video game industry has undergone many changes in the last few years, which has been a boon for investors, but not so great for people who play the games themselves.
A major that has driven revenue for companies like Microsoft (MSFT) – Download Microsoft Corporation Report and Sony (SNOW) – Download Sony Corp. report has been the era of microtransactions, also known as downloadable content or DLC, in video games.
These digital items range from costumes to new sections of a game that usually cost under $ 10.
These are also popular in the mobile gaming world, where heavily downloaded free-to-play games like King’s (KING) “Candy Crush Saga” makes their big bucks on getting the user to try the game and then conveniently sell currency and power-ups in the game that make it easier to move on.
Players complained about the DLC’s character of nickel and dime as it started to get big during Microsoft’s promotion of it in the Xbox 360 era, but the numbers told a different story.
NPD Group’s Q4 Market Dynamics report showed that close to 60% of the money spent in the gaming sector in 2021 went to DLC – and those numbers are on the rise.
But now Sony is considering a new feature that Microsoft has officially announced that it is exploring, and if gamers hated the idea of DLC, they are really going to hate this.
Shutterstock
Which feature does Sony Microsoft’s lead on?
Microsoft’s plan is to put ads in video games.
You do not get them in large budget releases that you pay full price for, such as the recent massively successful adventure “The Fire Ring”. At least not yet.
But they can show up in Microsoft’s stable of free games, such as the hugely popular titles “Fortnite” and “Roblox.”
Scroll to Continue
Business Insider reports that Microsoft does not plan to reduce advertising revenue, allowing game developers and ad-tech companies to reap the benefits instead.
And now a new report says Sony is considering taking the same path.
The software giant is reportedly testing the ad program and is in doubt as to whether it will require a revenue cut if the plan continues.
Microsoft has taken this path before
Microsoft has been trying for a long time to figure out a way to get in-game ads into play. It acquired the advertising company Massive Inc in 2006 for the purpose of displaying third-party ads to Xbox users.
But in 2010, it decided to close the brand and move all operations internally at the then Xbox Live.
Microsoft is stepping in and considering less intrusive methods of inserting ads into games, such as displaying them on billboards along the road in a racing game.
It can also create a private marketplace for advertisers who want to keep the ads out of play themselves while allowing them to play before or during a break. No decisions have been formally announced yet.
People who enjoy free-to-play games on mobile are accustomed to this formula on that platform. Many games ask users to see an ad to get a bonus that will be useful in the game, such as extra coins or special items. It’s one of the ways in which developers earn revenue from products instead of paying for the game in advance.
Introducing ads in free-to-play games ensures that even players who do not spend money on microtransactions bring in some revenue while playing, as they have no choice if the ad appears in the game other than to avoid playing quite.
People has exploded over the idea on social media, and goes so far as to say that they would stop buying games from both companies if the in-game ads become a reality.
Others tagged PlayStation Studios leader Hermen Hulst on Twitter to make their feelings clear on the matter.