Microsoft seems ready to launch a free version of its Xbox Cloud Gaming service, which will have ads. Testing for this could start soon for Xbox Insiders, according to sources who spoke to The Verge.
While Microsoft has said it is thinking about an ad-based model for cloud gaming, they haven’t shared many details yet. Recently, a new loading screen in the Xbox app showed that users could play for one hour while seeing ads.
This fits with earlier reports from October saying that Microsoft plans to offer five free hours of cloud gaming each month, although the details may change during testing.
After The Verge report, Microsoft confirmed to The New York Times that they are “testing an ad-supported model for cloud gaming” but didn’t provide more information. Other reports say non-subscribers will have to watch about two minutes of ads before starting a session. The free version will likely have a smaller game selection, including old games, Free Play Days titles, and games users already own.
This would put Xbox Cloud Gaming in direct competition with NVIDIA’s GeForce Now free tier, which also limits sessions to one hour and shows ads. One difference is that GeForce Now lets users stream games they already own from different online stores. Microsoft’s free tier would be a revival of a similar service that Google Stadia shut down three years ago. Microsoft reportedly started talking about ad-supported cloud gaming around the time Stadia closed.
People think Microsoft might announce this new free tier at its Developer_Direct event on Thursday, January 22. This event will also show updates on games like Forza Horizon 6 and Fable.
Moving into cloud gaming fits with Microsoft’s strategy of relying less on console sales. Xbox hardware has been seeing lower sales, and Microsoft is focusing more on a platform-neutral approach. This year, Xbox games like Forza Horizon 6 will be available on both PlayStation 5 and Xbox Series. Microsoft is also working on a new Xbox console that could be more like a PC.
A free, ad-supported cloud gaming tier would help Microsoft reach more players and reduce its reliance on console sales.
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