Microsoft demonstrates interactive ‘NUads’ for Xbox 360 Kinect

Microsoft’s plan to leverage its Kinect peripheral for interactive in-game advertisements that Xbox players can control via voice or gestures is moving ahead full steam. The hardware and software giant demonstrated NUads technology in action this week at the Cannes Lions International Festival of Creativity, promising advertisers the system would be ready to go in early 2012.

Mark Kroese, the General Manager of Microsoft’s Entertainment & Devices division’s Advertising Business Group, thankfully ignored gushing over his overly lengthy title and instead discussed the “promise of interactive TV” in a blog post about NUads on Tuesday.

“Typically when I talk about new technologies, I try to avoid hyperbole,” wrote Kroese. “But in this case of NUads and Kinect, I’m here to say that it will change television as we know it – forever. I say this because NUads — specifically the Kinect voice and gesture technology that enables them — finally unties the Gordian knot of interactive television, and by extension, interactive advertising.”

Kroese unveiled five ways NUads could be utilized by advertisers, but called the possibilities “endless.” One method demonstrated by Kroese – and markedly different from the expected “Minority Report”-esque implementations – was using the social networking giant Twitter in conjunction with Kinect. “A simple voice command such as ‘Xbox Tweet’ gives the consumer the ability to share something about a brand with their friends,” he mused.

The advertising guru also pointed out the Kinect’s camera could turn a couch into a ballot box, allowing people to vote on questions posed to them in ads. “With just a wave of a hand, audiences can easily convey their preferences,” said Kroese. “For example, while watching a trailer for the Green Lantern movie, there would be a prompt asking: ‘which is your favorite villain?’ or ‘Do you have plans to go see this movie?’”

Michael Pachter, a video game analyst of some renown at Wedbush Morgan, was impressed.

“This moves us a step closer to Xbox with Kinect becoming a television provider,” said Pachter according to The Hollywood Reporter, adding that “moving in this direction” was a long time coming for the company. The analyst said he expects Microsoft to eventually offer some type of “enhanced entertainment package” to consumers as a result. (via Gamasutra)

Microsoft filed for U.S. trademark protection on the term ‘NUads’ three weeks ago, leading many to ponder exactly when (and how) the company would integrate the concept into its growing Xbox brand. Now that we have those answers, what do you think about interactive ads on the Xbox 360?