Xbox Cloud Gaming Could Offer Free, Ad-Supported Alternative to Game Pass
Microsoft is exploring a new avenue for Xbox Cloud Gaming by testing a free, ad-supported version of this popular service. This development comes alongside the announcement of a price increase for Xbox Game Pass, effective November 4.
Ad-Supported Xbox Cloud Gaming
A Microsoft official recently confirmed to The New York Times that internal trials for this ad-supported service are underway. This initiative would provide access to a selection of games through Xbox Cloud Gaming without a subscription fee, although the exact number of games available has yet to be disclosed.
Details of the Service
During testing, users reported that around two minutes of advertisements play before they can access the selected game. The service aims to be compatible with various devices, including:
- PCs
- Xbox consoles
- Handheld devices
- Web browsers
However, it remains unclear if this ad-supported option will be integrated into the Xbox Game Pass framework or will be launched independently.
Context of the Xbox Game Pass Price Increase
The announcement of the ad-supported service coincides with the upcoming hike in Xbox Game Pass subscription fees. Microsoft has faced challenges this year, including a 22% drop in sales of its Xbox Series X|S consoles due to previous price increases driven by tariffs. The Xbox Series X, in particular, is now $150 more expensive than at its launch nearly five years ago.
Microsoft’s Xbox division has seen a surge in cancellations related to the Game Pass service since the price hike announcement, even causing the cancellation page to crash. This turmoil follows reports of layoffs within the division and the cancellation of several game projects, including the reboot of Perfect Dark.
Industry Trends
The move towards ad-supported models mirrors trends in other media formats, where platforms like Netflix, Disney Plus, and Hulu have introduced lower-priced tiers featuring advertisements. As of May, approximately half of all streaming service subscriptions worldwide were ad-supported.
Microsoft’s strategic shift may enhance accessibility for players while potentially stabilizing its Xbox platform amid a tumultuous financial landscape.
