Microsoft may be planning to add ads to free Xbox games. Proceeds would go entirely to game developers. Microsoft probably wants to motivate more companies to offer free games for Xbox.
The rumors come from Business Insider (behind the paywall) who heard from trusted sources. Microsoft will expect some opposition from the Xbox community, so proceed with caution.
It is not yet known how the ads will take shape, but gamers should not be disturbed by this in any case. Microsoft plans to set up some kind of private developer store where only certain brands can offer advertising opportunities.
Microsoft is responding to the rumors with the story “we are always looking for ways to improve the experience for gamers and developers”. According to Business Insiders sources, we were able to see ads in games as early as the third quarter of this year.
Source: Business Insider
Source: Hardware Info