Users have already complained about getting bombarded with ads on Xbox Live - a paid service - but now Microsoft is bringing in 15-30 second ads, right in the midst of your video apps. On the plus side, the new deal they've struck brings in more channels, including Manga Entertainment.

Ross Honey (what a name), MS's General Manager of Xbox Live Entertainment and Advertising, said, "With the growth of Xbox Live, advertisers no longer have to choose between digital and TV advertising - we're offering the impact of TV and the interactivity and addressability of digital in one platform.

"As more and more industry leaders like ESPN work with us to help monetize their content on Xbox Live, TV media buyers win with the ability to extend their standard TV spots to this highly engaged consumer audience."

Highly engaged audience = captive audience.

Since 2010, Microsoft has seen an increase in advertising revenue from Xbox Live of about 142%, which may have something to do with the dashboard redesign and the increased implementation of ads. Now it seems like there's blood in the water and the sharks are circling.

Next, get ready for Old Spice ads playing in the corner of your screen while you're trying to dodge enemy attacks in your favorite game.

[Via Eurogamer]

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