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ice said:

As much as I detest the thought of ads in video games, this doesn't sound awful if it's making the service free/lower in price.

And thiiiiis is where we start to see the problem, it starts as "only for free accounts" and then we start seeing it in premium accounts too, and the consumers just accept that. MS only just started testing that program and there is already at least one person saying it doesn't sound awful if it just lowers the price...