Microsoft filed a patent describing a system that would serve personalized ad content to gamers as they play.
The patent was first spotted by Gamesual, and is titled, "Providing personalized content for unintrusive online gaming experience." It describes a system whereby ads can be served to cloud-based streaming or internet-connected games, but those ads are personalized for each player.
The diagrams included with the patent show personalized ads being applied to billboards in a driving game, the hoarding behind a goal in a soccer game, and branding on outfits in sports games. The ads would be served in real-time, appearing at locations deemed "continuously visible," and based on who is playing, which can be determined by checking the account used to access the game.
Although the patent states this would be an "unintrusive" system of serving ads, it would inevitably lead to developers being asked to ensure a minimum number of locations where ads can be placed and easily seen. Environment designs will be impacted, and we could see ads appearing on objects players regularly interact with much more often.
Microsoft already has a games console that relies on an internet connection for accessing games in the form of the Xbox Series S. Then there's Game Pass Ultimate, which requires an internet connection and allows games to be played from the cloud across a whole range of devices. In other words, the rest of the components required for the personalized ads system to work are already in place, Microsoft just needs to implement it to start generating ad revenue as we play.