EA created an entire division to push more in-game ads

**Imran Shaikh** (0:00)
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Electronic Arts has created an entire division to push more in-game ads. More on that coming up, but first, Xbox Game Studios looks set to find its third leader in the space of two years, amid reports that Microsoft's gaming division is preparing another major round of layoffs. The current Xbox Game Studios head, Craig Duncan, who took up the post in October 2024, is stepping down this week, according to a memo obtained by the Game Business. Duncan's teams, which include Halo Studios, The Coalition, Playground Games, Rare, Obsidian, Ninja Theory, and Double Fine, will report directly to Matt Booty, Xbox's Chief Content Officer, until a replacement is appointed. Louise O'Connor, who became Xbox Game Studios' Chief of Staff last year, is also said to be moving on. Duncan and O'Connor are departing days after Booty and Xbox CEO Asha Sharma sent an ominous public memo to employees that discussed a reset of the business after a decline in revenue. The memo highlighted increased costs of hardware components and competition from other forms of entertainment for players' attention, as other factors for concern. The executives also asserted that Xbox was overextended after snapping up so many studios over the last 10 years or so, claiming that we have not adequately funded them to compete and win.
Booty and Sharma sent the memo just as Bloomberg reported Xbox is preparing for another round of mass layoffs. It's expected that the layoffs will begin after Microsoft's current fiscal year ends on June 30th.
Over at Meta, they just announced a suite of AI tools for Facebook users.
Nothing here looks especially new, but availability on Facebook could be of some use to certain power users. First up, there's the simply named AI mode. This is a standard chatbot that answers questions. With Meta using the example everyone uses when rolling out one of these tools, the update also includes photo editing capabilities, as that tends to be the other big selling point of these tools beyond find me somewhere to vacation. There are fresh collage cutout templates for altering photos from the camera roll, and new transition effects to create smooth, stylized video montages that are ready to share. Meta says it can whip up these videos with just a tap. Remember, you can find the latest Engadget News, reviews, price drops, and more right now at engadget.com.

**SPEAKER_2** (3:31)
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**Imran Shaikh** (4:03)
Electronic Arts has launched EA Advertising, its new platform dedicated specifically to in-game ads and brand partnerships. Ads in EA games aren't new, but this division could lead to more sophisticated campaigns across video games under EA's umbrella. So far, EA Advertising's website highlights brand opportunities, mostly for its sports game franchises like EA Sports FC or Madden NFL, but also shows the Skate and The Sims franchise's examples for companies to inherit the fandom with ad placements and more. As detailed by the company's press release, EA Advertising is offering up ways for brands to incorporate ads through in-game challenges, reward-driven objectives, and branded content. EA's new advertising arm even proposed curated vanity items for better brand engagement and connection. EA said it can also tie in advertisers into EA sports games through digital ad boards, scoreboards, and brand broadcast overlays like we've already seen in EA Sports FC 26 For brands looking to really push their content across the fanbase, there's the EA Sports Partner Program that lets companies more heavily participate with ad campaigns in the game, but also in real world events or experiences. EA advertising is already hitting the ground running thanks to partnerships secured with Visa, Lowe's, Red Bull, Xfinity, Peacock, and Mountain Dew. These first few companies have already introduced branded content through in-game team kits, objectives, and broadcasting. Along with this more focused approach at pushing in-game ads, EA saw a net revenue of more than $7.5 billion in its latest 2026 fiscal year financial report.