Microsoft Weighs Free, Ad-Supported Cloud Gaming as Xbox Faces Turbulent Year
Microsoft is reportedly preparing to launch a free tier of its Cloud Gaming service, supported by advertising, extending access to PC, xbox consoles, handhelds, and the web without requiring a Game Pass subscription. Internal testing of the ad-supported version is underway, with a public test anticipated in the near future, according to sources. this potential shift comes amid a challenging period for the company’s Xbox division, marked by price increases, layoffs, and internal criticism of its core subscription model.
The move to offer a free, ad-supported Cloud Gaming option signals Microsoft’s intent to broaden the reach of its gaming ecosystem, potentially attracting a wider audience beyond the current Game Pass subscriber base.However, it also reflects broader pressures within the company. In July,Microsoft implemented important layoffs impacting its gaming division,including staff at Xbox and Arkane Studios.Simultaneously, Arkane Studios founder Raphael Colantonio publicly questioned the sustainability of the Game Pass model, asking on social media, “Why is no one talking about the elephant in the room? Cough cough (Game Pass).”
This year has seen escalating costs for Xbox consumers. Microsoft initially raised the price of new video games to $80,before reversing course and maintaining a $70 price point for titles like The Outer Worlds 2 following fan backlash. The price of Xbox consoles also increased twice in the US, attributed to “changes in the macroeconomic surroundings.” Further adding to the cost landscape, Microsoft confirmed a $1,000 price tag for the ROG Xbox Ally X laptop and $600 for the standard ROG Xbox ally.
The success of cloud gaming hinges on overcoming hurdles like internet connectivity and latency, but the potential for accessibility and cost savings is significant. Microsoft’s experiment with an ad-supported model could prove pivotal in determining whether cloud gaming can evolve from a niche offering into a mainstream platform. The upcoming public test will be a key indicator of consumer appetite for this approach.
