Microsoft paying YouTube video creators for promoting Xbox One: Report

Microsoft, the maker for one of the most popular gaming consoles, Xbox One, might have illegally tried to promote the new console through videos on YouTube. According to a report, the firm is said to have offered incentives to video partners Machinima for mentioning Xbox One in their videos.

Recently an alleged email was shared by iGame Responsibly, which detailed the deal made between Microsoft and Machinima video partners. The email mentions that the video partners will be paid $3 for every 1,000 views. In order to get the incentive, partners would need to include a 30 second video clip of an Xbox One game in a video, specifically mention they are playing on the Xbox One, tag the video with XB1M13, and submit the link through Poptent (video marketing site).

According to Ars Technica, which cited the leaked legal agreement or campaign guidelines behind the promotion, the video creators "may not say anything negative or disparaging about Machinima, Xbox One or any of its Games in [the] Campaign Video." The agreement reportedly also mentioned that the creators should not mention that they have been paid by Microsoft, or any such offer ever existed.

The deal being offered to YouTube video creators by Microsoft is said to directly contradict FTC guidelines, which state that the endorser's connection with the seller of the product should be disclosed when providing any material goods or cash incentives. The campaign however is said to have "expired" and it is being expected that Microsoft has already reached its goal of 1.25 million views, after which the campaign would have ended.

Both Microsoft and Machinima are yet to comment anything on the legal issue raised by Ars Technica.