The image of white male teens as the stereotypical average gamer is something of a myth; Microsoft says that of its 25 million Xbox Live subscribers in the United States, 38 percent are women. Forty percent are married, and more than half have children. Those numbers are important, because they represent key demographics that are among the most contested in political races. Microsoft is particularly aggressive in selling its ability to reach women, Latinos and millennials; across the company's other platforms, such as MSN, Microsoft has developed consumer categories like "Ciudad Strivers" and "Nuevo Horizons" that attempt to describe a set of characteristics including age, type of residence and income level. At a time when virtually all politicians are resorting to microtargeting, this technology could help Microsoft become a major player in the advertising space.
Multiple Microsoft officials declined to comment for this story.
You could say this effort is one direct result of Microsoft's longstanding attempt to conquer the living room. Although pay-TV providers have been capable of doing targeted advertising for some time, it was only recently that satellite TV companies made it possible for political campaigns to test targeted ads on any large scale.
Microsoft has made successful pitches to political campaigns before. In 2012, President Obama agreed to advertise on Xbox Live for his reelection campaign. The effort sparked some complaints among Xbox users who disliked the ad appearing on their dashboards. Republican presidential candidate Mitt Romney, meanwhile, opted not to participate. Obama has also advertised within games themselves. With the release last year of the Xbox One, it's safe to expect Xbox Live to become another important platform in the political ad wars.