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The patent application itself describes it as “a content management system” and that it could obtain a promoted content trigger event based partially on the game, suspend a user’s interaction with the game based on the promoted content trigger event, obtain promoted audiovisual content and present it to the user, commence the user’s interaction with the game, and establish “a credit based at partially on the promoted audiovisual content, wherein the credit delays suspension of the user’s interaction with the interactive software application during a credit duration.”
Based on this description, it works similarly to some free-to-play mobile games, where ads are automatically served after you finish a round or after a few minutes of playing. The difference with this system is that it doesn’t serve ads arbitrarily; instead, it works with the game engine and even uses machine learning to determine when it’s the best time to show players the ad.
While this is still a patent application and it’s not even clear if this has been deployed in actual games, it shows what Microsoft is considering for how it could monetize free-to-play games. We’ve seen similar moves with Xbox Cloud Gaming, with the company experimenting with an ad-supported free tier for the cloud gaming service .
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While the tech that Microsoft applied for a patent on could actually be a good thing, as it would make in-game ads less jarring, we could argue that it would encourage both gamers and publishers to focus on free-to-play titles. The idea behind these games and services is that it would allow more people, especially those who don’t want to spend cash, to enjoy gaming. However, some say that they’ve actually broken the diversity and innovation in the gaming industry, as developers and publishers focus more on monetization instead of unique games and quality titles. You can view the USPTO application here [ PDF ].
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Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/video-games/SPONSORED_LINK_URL
- https://www.tomshardware.com/video-games/microsoft-patents-system-to-freeze-games-and-inject-ads-during-downtimes-watching-commercials-earns-ad-free-playtime-credits#main
- https://www.tomshardware.com/membership
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