It seems Microsoft is developing a new ad format for Xbox games. This is indicated by the company's patent application, which describes a system capable of identifying suitable moments during gameplay to display advertising content.
Microsoft Technology Licensing US application 2026/0260258 A1, titled "Contextually Aware Management of Interactive Software Application Access," was filed on April 23, 2026, and published by the U.S. Patent and Trademark Office on September 3.
According to the document, a special content management system will be able to analyze what is happening in the game and determine appropriate moments for displaying ads. Examples include various gameplay events — such as completing a level or other stages. To determine such events, the system can use in-game data, API signals, or machine learning models that analyze what is happening on the screen.
Microsoft is also considering a reward-based model. After watching an ad, the player can receive a special credit that postpones the next ad display for a certain period or number of in-game events. The patent provides examples such as five rounds, completing one level, finishing three online matches, or defeating a specific opponent.
Essentially, this is a system familiar from mobile free-to-play games: "watch an ad — get a reward," but Microsoft wants to adapt it for full-fledged AA and AAA games. An important detail is that during the display of advertising content, the game may be paused or restricted at the operating system level so that the player cannot continue gameplay.
In July, Microsoft began testing for Xbox Insider participants the ability to stream some of their owned games from the library for free with ads. Before starting a gaming session, advertising materials are shown, after which the user receives a time-limited cloud gaming session.