According to sources, both PlayStation and Xbox are working on in-game advertisements.
The in-game advertising is intended to provide a mechanism for game producers to commercialise their work while also encouraging them to continue developing free-to-play games.
PS in-game adverts are slated to debut before the end of the year and would show in inconspicuous locations within the game, similar to billboards. According to Insider, players might be rewarded for watching advertising, which would be sold through a secret marketplace.
According to industry Insiders, Sony has not yet determined whether it will take a cut of ad revenue, but it is exploring charging developers and publishers for customer data.
Last week, it was reported that Xbox was working on a similar initiative with the same goal of giving away free games. Both firms are expected to release their goods by the end of the year.
The advancement would allow console games to behave more like mobile games, frequently labelled as free-to-play or ad-supported. However, it is expected to create the same issues that have plagued such games, such as concerns over the style of adverts, potential scams, and the type of player tracking that marketers are allowed to practice. Advertising corporations and digital platforms have already clashed over such internet surveillance.
Legitimate advertising has previously been tested in a few console games. For example, EA introduced marketing videos in UFC 4 but removed them after public outcry, and NBA 2K21 contains advertisements on the loading screens.
Microsoft is said to have no intention of keeping any of the advertising revenue, which will instead be split between developers and ad agencies. Sony has yet to decide how the revenue will be shared, according to the reports.