Microsoft is set to roll-out TV-style advertising for Xbox Live, with 15-30 second spots set to run within TV and video apps.
The deal also confirms new channels coming soon to US gamers, including anime-streaming from Manga Entertainment.
"With the growth of Xbox Live, advertisers no longer have to choose between digital and TV advertising - we're offering the impact of TV and the interactivity and addressability of digital in one platform," said Microsoft's Ross Honey, general manager of Xbox Live Entertainment and Advertising.
"As more and more industry leaders like ESPN work with us to help monetize their content on Xbox Live, TV media buyers win with the ability to extend their standard TV spots to this highly engaged consumer audience."
Microsoft has recently enjoyed a huge increase in advertising revenue from Live. The service has earned Microsoft 142 per cent more ad cash since 2010.
US Gold subscribers now spend an average of 84 hours a month signed in to Xbox Live, with entertainment app usage recently surpassing online multiplayer gaming for the first time.