So apparently since if I don't post about it ITT too I'm a Sony fanboy
....
I don't care who's doing it; if you're putting Youtube-style ads in the middle of games, especially games I've already paid in full for, then you can go kick rocks. Microsoft or Sony (or Nintendo, though they flat-out lack the infrastructure to do it...thankfully). The Microsoft rumor is that it'd be limited to F2P games...okay don't those already make enough money through in-game purchases?
Fine, let's say they do it anyway, we know it won't stop with just F2P games. Why would it? Condition people enough with F2P games, then you'll get it in games you're paying for anyway. If it's a necessary evil, the buck should stop with F2P and games in a service like GamePass, IMHO. You pay for GamePass and that's basically like paying for Cox cable or Dish, but the content you watch through those on the cable channels still have ads in them. Well, that's GamePass, in a nutshell, and even then a higher tier should probably be available to disable the ads altogether.
The only other way this would work is if the ads are just fully integrated like how they did in games such as Burnout Paradise (or for a more extensive example, Crazy Taxi, which had full-blown KFC and Taco Bell building assets in it). That would be the ideal way, but we know MS, Sony or whoever would drag their feet on that method because it'd require a lot more work on their end and also on that of developers in general. Suddenly third-party devs would be required to write in code to support that type of feature, make assets for the advertising space and also need to make sure the assets could be altered easily.
Microsoft & Sony would have to pay 3P publishers fees for taking that work unto themselves (or even if MS & Sony made an API package and free assets that could be plugged into 3P games, would have to pay publishers for using them), and the 3P publishers would want a cut of any generated revenue those ads brought from their games. Just a super-complicated and messy process and word is MS want to implement theirs by the end of this year. Doubt they've had any time to sort those logistics out (and if they had...why can't we get more gameplay footage of 1P games outside of E3 and TGAs?).
So I doubt that second method is going to be possible, at least for a few years, and the first one already does damage, it's just about mitigating it to F2P and GamePass-like subscription service content. If Microsoft
AND Sony are doing this, and it's like the first option, and spreads out beyond F2P/game subscription services...they can
both go take a hike.