Xbox's new chief strategy officer is still a big believer in in-game ads

Videogame analyst Matthew Ball predicted in his "State of Videogaming in 2026" report earlier this year that in-game ad placements will become more common in PC and console games and services, as they're a largely untapped source of revenue. Now the newly hired chief strategy officer for Xbox says he hasn't changed his mind, telling The Game Business that in-game ads remain a viable option.

He describes the situation as a two-sided problem: the cost of making games keeps going up, particularly on the big-budget side where Microsoft lives, and hardware costs are also rising. That pressure ultimately lands on consumers, who may be forced to reduce or stop spending on games, which in turn halts growth — and growth, Ball argues, is the core pillar of the economic system the industry relies on.

The solution, he suggests, is finding ways to keep people coming through the door with lower prices without cutting into monthly revenue, and ads are one path to that balance.

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