NEWS  Games  December 14, 2023  Reading time: 2 Minute(s)

Max (RS editor)

Xbox gaming CFO Tim Stuart has hinted at a groundbreaking shift in Microsoft's gaming strategy. The suggestion? Free game streaming through xCloud, fueled by advertisements, akin to the models seen in mobile gaming. This innovative approach could mark the next phase in the evolution of Microsoft's gaming content and services roadmap.

Industry experts speculate that a more economical, ad-supported Xbox Game Pass subscription tier might be on the horizon. Xbox president Sarah Bond has previously touched upon topics like advertisements and the possibility of Xbox offering "slices of gameplay" to users. Now, with Tim Stuart's intriguing quotes, the idea gains more traction.

Stuart outlined his perspective on the potential role of ads in Xbox cloud gaming during an interview at the Wells Fargo TMT Summit held last month. According to him, the introduction of ads could serve multiple purposes, including making gaming more accessible in regions where consoles are not the primary gaming platform.

"It also helps us, maybe lastly, on geographic expansion. The vision I like to talk about is we have xCloud game streaming, so you can subscribe to Game Pass Ultimate and you can stream hundreds of games to really any endpoint that has a browser experience" - Stuart explained.

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He continued by proposing a scenario for regions like Africa, India, and Southeast Asia, where consoles may not be the go-to choice for gaming. Stuart envisions a model where users can opt to watch a brief advertisement, say 30 seconds, in exchange for two hours of game streaming. This approach becomes particularly appealing in regions like Africa, where a significant portion of the population is young, possesses growing disposable income, and primarily engages with gaming through mobile devices.

"Africa is, you know, 50% of the population is 23 years old or younger with a growing disposable income base, all with cell phones and mobile devices, not a lot of high-end disposable income, generally-speaking"

The potential impact of this strategy is substantial. By incorporating ads into the gaming experience, Microsoft could tap into markets with millions of potential gamers who were previously challenging to reach. The move aligns with Microsoft's commitment to expanding its gaming ecosystem globally and adapting to the diverse gaming preferences across different regions. However, whether this ad-supported strategy will materialize for xCloud remains uncertain. Nonetheless, it is evident that advertisements will continue to be a part of the gaming landscape, as seen in Activision Blizzard King games like Candy Crush.

As the gaming industry continues to evolve, Microsoft's exploration of new models challenges traditional norms, hinting at a future where advertisements play a pivotal role in enhancing accessibility and affordability for gamers around the world. Only time will reveal the extent of this paradigm shift and its impact on the gaming community.

 MEDIA CREDITS: XBOX/MICROSOFT 

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