Microsoft's Foray into Cloud Gaming Hits a Roadblock as Advertising Becomes a Sticking Point.
Microsoft is on the cusp of expanding its Xbox Cloud Gaming service to non-subscribers, but in doing so, it may be relying too heavily on advertising revenue. A recent report suggests that Microsoft plans to offer ad-supported access to game streams for Xbox Game Pass Essentials subscribers and non-subscribers alike, albeit under extremely limited circumstances.
This development is part of a growing trend in the gaming industry where cloud gaming services are struggling to find sustainable business models. While this new tier may prove moderately useful for casual gamers who want to try out games without committing to a monthly subscription, it feels like a half-measure. Microsoft could be missing an opportunity to create more engaging and immersive experiences for players.
One potential area of exploration is offering timed demo streams or limited-time rentals of popular titles in exchange for watching ads or paying a small fee. This approach has proven successful with services like iTunes and Netflix, where users can rent or stream content for a short period without breaking the bank. By adopting a similar model, Microsoft could provide more value to players while also generating revenue.
However, by relying on traditional advertising revenue, Microsoft may be limiting its options for growth and innovation. Stadia's experience highlights the challenges of creating a sustainable business model in cloud gaming, where high-end hardware is often a requirement. Microsoft should take note of this cautionary tale and consider alternative approaches to expand access to its services.
For now, it remains to be seen how effectively Microsoft will implement this new ad-supported tier, but one thing is clear: the company has an opportunity to think outside the box and create more engaging experiences for its players.
Microsoft is on the cusp of expanding its Xbox Cloud Gaming service to non-subscribers, but in doing so, it may be relying too heavily on advertising revenue. A recent report suggests that Microsoft plans to offer ad-supported access to game streams for Xbox Game Pass Essentials subscribers and non-subscribers alike, albeit under extremely limited circumstances.
This development is part of a growing trend in the gaming industry where cloud gaming services are struggling to find sustainable business models. While this new tier may prove moderately useful for casual gamers who want to try out games without committing to a monthly subscription, it feels like a half-measure. Microsoft could be missing an opportunity to create more engaging and immersive experiences for players.
One potential area of exploration is offering timed demo streams or limited-time rentals of popular titles in exchange for watching ads or paying a small fee. This approach has proven successful with services like iTunes and Netflix, where users can rent or stream content for a short period without breaking the bank. By adopting a similar model, Microsoft could provide more value to players while also generating revenue.
However, by relying on traditional advertising revenue, Microsoft may be limiting its options for growth and innovation. Stadia's experience highlights the challenges of creating a sustainable business model in cloud gaming, where high-end hardware is often a requirement. Microsoft should take note of this cautionary tale and consider alternative approaches to expand access to its services.
For now, it remains to be seen how effectively Microsoft will implement this new ad-supported tier, but one thing is clear: the company has an opportunity to think outside the box and create more engaging experiences for its players.