Microsoft is gearing up for a major change in the way users can access Xbox Cloud Gaming, a cloud game streaming service that has until now been mostly tied to Xbox Game Pass subscriptions. According to the latest industry reports, the company is working on launching a free, ad-supported tier of service that would allow gamers to stream games they already own, without the need for a paid subscription, but with ads displayed before or during sessions.
An early spotted pop-up on some Cloud Gaming UIs points to messages like “1 hour of ad-supported playtime per session,” implying that this version could offer hour-long streaming sessions with ads appearing before gameplay begins. While Microsoft has yet to formally announce the new tier, these appearances and confirmations from insider sources suggest that development is at an advanced stage and that an ad-supported tier could be coming. this year.
An ad-supported version of Cloud Gaming would work independently of Xbox Game Pass, that is, users who do not have an active subscription could use this option while accepting ads as a kind of “currency” for accessing a gaming session. Previous tests indicate that those ads could run for about two minutes before a session starts, and then the user would get a certain amount of playing time, such as one hour per session, with possible monthly limits.
For Microsoft, this move has several goals. First, it opens up cloud gaming to a wider audience, especially those who don’t want or can’t pay for a Game Pass subscription but have digital copies of games. Second, ads serve as a new source of revenue for the company, which can help offset the costs of servers and Azure cloud infrastructure that form the foundation of the streaming service. Third, the free access model with ads potentially increases user engagement, which can lead to more conversions to paid Game Pass subscriptions in the long run.
This approach is not unknown in the tech industry. Video and music streaming services have long used freemium models with ads to attract users before “converting” them to subscribers. Xbox’s potential move to a similar strategy in the world of cloud gaming could set an example for other platforms struggling to balance affordability and profitability.
However, it remains to be seen how the gaming community will react to ads in cloud sessions, especially in the context of the gaming experience where interruptions can be a significant source of frustration. Microsoft is likely to carefully shape the rules around ad frequency, session durations, and limits, and public beta testing before full release can help fine-tune finesse based on player feedback.
In any case, this change indicates that cloud gaming as a service is developing rapidly, and Microsoft, as one of the leading players in the industry, is trying to find a balance between the growth of the user base, monetization and preserving the quality of the user experience, reports Mashable.