Xbox has announced a test for an ad-supporting streaming service for its Xbox Insider program. It will allow players to stream select games from their library for free for one-hour sessions, with advertisements playing before play sessions.
As seen in a new blog post on the official Xbox website, the details of the test are broken down in full. Ads will play before the one-hour sessions, with the article emphasising “the core game experience is unchanged”, and the ad-supported streaming service is optional. It says: “Players can choose other ways to play at any time.”
The stated reason why this is being tested, the article explains, is that Xbox owners have devices that already allow them to stream games, and that this allows players with weaker hardware like the Xbox One to play games made for the Xbox Series X/S. The post reads: “That can be especially meaningful in places where consoles are harder to find or less affordable, giving more players another way to access great games on devices they already have.”
Of course, a big reason why hardware is proving harder to find – and becoming less affordable – is due to the generative AI boom, which has resulted in console components becoming scarce and the cost of hardware products like the Xbox Series X/S being raised. Microsoft has already hiked the price of its consoles last month in response, citing rising memory costs. Microsoft is also one of the main culprits of the generative AI boom, fueling generative AI software like Azure and Copilot with its multi-billion contracts with OpenAI.
The blog post then states: “Advertising has existed in gaming for decades, from in-game placements to free-to-play models. But it hasn’t always been built with the player in mind.” It claims that advertising “can help lower the cost of access”, and it can create “another way for players to get into games without an upfront streaming purchase and expands audiences through new ways to play.”
There is, of course, a substantial difference between believable advertisements within sports titles, or games League of Legends advertising its own merch and events within its own client, and external advertising placed at the start of a streaming session.
Finally, the article breaks down how Xbox will approach ad-supported streaming. The first point being: “We start with the player. Ads should create value.” How exactly value is created for players seeing ads when playing games they own is unclear. It also states these will not interrupt the flow of gameplay, that ads will match the “same quality bar as our content”, there will be clarity on what’s being advertised, and an effort will be made to make sure advertisements fit what players expect on each platform.
This is far from the first time a video game company has toyed with introducing advertisements into its games. Earlier this month EA said in-game advertisements as a “huge opportunity”, having launched its own ad platform the month prior having toyed with the idea for years. Former Anthem executive producer Mark Darrah believes it’s a good idea too.
With hardware costs not looking to drop any time soon, even if the generative AI bubble were to burst, the gaming ecosystem might just be right for ad-support aspirations. How it’ll be received remains to be seen.
