Microsoft is reportedly testing a free, ad-supported version of its Xbox Cloud Gaming service. This move comes as Xbox Game Pass prepares for a price increase and follows the surprising announcement that the Halo franchise will expand to PlayStation. The ad-supported tier aims to offer a more accessible entry point for gamers, potentially mitigating the impact of rising subscription fees.
Key Takeaways
- Microsoft is internally testing a free, ad-supported tier for Xbox Cloud Gaming.
- This offering could serve as an alternative to more expensive Xbox Game Pass subscriptions.
- The service is expected to feature ads, with initial tests showing approximately two minutes of ads before gameplay.
- The move coincides with an upcoming price hike for Xbox Game Pass and the franchise’s expansion to PlayStation.
A New Frontier for Cloud Gaming
Microsoft has confirmed it is conducting internal tests for a free, ad-supported version of Xbox Cloud Gaming. This initiative, first reported by The Verge and confirmed by The New York Times, could provide a significant alternative for gamers looking to access titles without committing to a full subscription. While the exact number of games that will be available through this free tier remains unclear, it is understood that it will include some titles from a user’s library, along with Xbox Retro Classic games and Free Play Days titles.
During the internal testing phase, users have experienced approximately two minutes of advertisements before they can begin streaming a game. This ad model is becoming increasingly common across various streaming services, with platforms like Netflix, Disney Plus, and Hulu having already introduced lower-priced, ad-supported tiers. Data suggests that nearly half of all streaming service subscriptions are now ad-supported plans.
Addressing Market Challenges
The development of a free cloud gaming tier comes at a time when Microsoft’s Xbox division has faced several challenges. Console sales for the Xbox Series X|S have seen a decline, partly attributed to previous price increases on hardware. Furthermore, the Xbox Game Pass service experienced a surge in cancellations following the announcement of its upcoming price increase, even causing the service’s cancellation page to crash.
Reports also indicate that Microsoft has undertaken multiple rounds of layoffs within its Xbox division and has canceled certain game projects, such as a reboot of Perfect Dark, as part of an effort to boost profit margins. The introduction of a free, ad-supported cloud gaming option could be a strategic move to broaden the Xbox ecosystem’s reach and engagement amidst these market pressures.
Accessibility Across Devices
The ad-supported Xbox Cloud Gaming is reportedly accessible across a range of devices, including PCs, Xbox consoles, handheld devices, and web browsers. This broad compatibility aims to ensure that a wider audience can take advantage of the service, regardless of their preferred platform. Microsoft has not yet provided an official release date or further details on how this free tier will be integrated into the Xbox ecosystem or if it will launch concurrently with the Game Pass price increase on November 4th.
