The Chief Strategic Officer of Xbox, Matthew Bauer, clarified earlier statements about advertising in the game. He indicated that he was responding to comments made prior to joining the Xbox sector, which did not necessarily reflect Microsoft’s “plan or philosophy”.
Matthew Bauer stated: “I mean, advertising should be used as an alternative to providing more cost-effective alternatives to the current unadvertised experience, in the hope of attracting more players. As in Netflix and Disney+, an advertising package with the same content but only about half the price is available. I never mentioned that the game would be advertised, and it was unacceptable for me personally to interrupt the game experience.”
Matthew Bauer had previously spoken in an interview with The Game Business about a double-edged sword in modern play. Many games are “too expensive” to develop, and consumers are reluctant to pay for it. That situation must change, and he believed that advertising might be a solution.
Citing the example of television streaming, he noted that the growth of various streaming platforms was mainly due to paid subscriptions supported by advertising. At the same time, users can still pay for a high-level, advertising-free subscription service.
Matthew Bauer stated that while the advertising of the game was already widespread and popular at the mobile end, the host was the opposite. Finding a solution to the host game ads may be one way for the game industry to return to growth.
He said, “The question is not whether we can fill up advertising everywhere, but is there some possibility that those who cannot afford or who do not want to pay will have access to our products or games?”
Matthew Bauer stressed that there was no information that could be shared on a specific Microsoft scheme, but said that enterprises should consider advertising to increase and control costs. “How can we keep prices for pro-people products? How can the R & D team be assured of continuous creation? That’s what we’re after, not for the marketing of goods.”
Matthew Bauer had previously advocated for more advertising in the game, saying that the player should be advertised, otherwise the situation could be worse for both developers and consumers. “We don’t want to be laid off, we don’t want to reduce the distribution of games, we don’t want to play more homogenous games … We don’t want to raise prices. But it had to be funded.” He said.
The industry has previously tried to advertise in games, such as the moratorium in EA Reports UFC 4. This quickly provoked strong discontent among players, forcing EA to eventually remove advertising. Prior to that, Square Enix had launched a game platform called Core Online, which allowed the player to play free by watching an ad, which had not been approved by the player, and was soon closed down by Square Enix.
Former senior BioWare, Mark Darla, recently stated that developers can generate income by selling product implants and help industry achieve sustainable development. “Product implants now account for a very small proportion of video games compared to film and television. Perhaps it could play a more important role in the development of the game, in which the possibility of a cooperative relationship exists, he said.
However, the owner of Take-Two, Strauss Zelnik, stated that it would be “unfair” to advertise the game for buyout.
Matthew Bauer joined Xbox as Chief Strategic Officer earlier this year as a member of the new Xbox leader, Asha Sharma. He recently stated that Xbox was underperforming under the leadership of former leaders Phil Spencer and Sarah Bond and claimed to be a “strategic optimist” in trying to reverse the decline of the Xbox.
Sharma recently announced plans to “replace” the Xbox operation, which is expected to include additional staff reductions in July and the possible closure of the workshop.