Microsoft Tests Ad-Supported Cloud Gaming to Lower Entry Barriers
AI-generated image · US National Wire
Xbox is piloting a free, ad-funded streaming model for select owned titles as the company grapples with thin profit margins.
Microsoft is testing a new way for users to stream specific games from their own libraries without a Game Pass subscription, according to Engadget. Under the trial, Xbox insiders can access cloud gaming for free by watching advertisements, a move Engadget notes mirrors the playbook used by GeForce Now.
These ad-supported sessions are capped at one hour. Microsoft stated that advertisements will not interrupt active gameplay and will be held to the same quality standards as its content to ensure they fit player expectations across platforms. The company is positioning the test as a method to provide more affordable ways to play, a pivot that comes just days before Microsoft increases the prices of Xbox consoles, as reported by Engadget.
This shift toward ad-funded access arrives as Xbox leaders acknowledge the division is operating on very thin profit margins. In an effort to improve the bottom line, Microsoft is implementing a reorganization that includes cutting approximately 3,200 jobs, divesting studios, and reportedly cancelling certain games to refocus on major franchises. Engadget notes that Microsoft has also increased Game Pass subscription prices over the last few years, despite a slight backtrack several months ago.
Microsoft announced the trial on the same day Amazon began integrating its Luna cloud gaming service into the Prime Video app, as reported by Engadget.