Microsoft has been in the news for days with its leaked change in strategy of going to multiple platforms with its Xbox-exclusive titles. It’s now reported that the company plans to bring Xbox Game Pass ads, which could be happening soon.
This is speculated to be one of the major steps that the company is considering, along with others. The news on update adds fuel to the rumors that surfaced in December last year, hinting that Xbox might launch an ad-supported tier for Xbox Game Pass in some regions.
Xbox Game Pass Might Soon Include Advertisements
Xbox Game Pass is one of the most popular gaming subscription services, catering to players on both Xbox consoles and PC and providing hundreds of games for a nominal subscription fee every month. The Microsoft leaker Timdog appeared on the latest episode of the Gamers Council podcast and said that alongside changes like going third-party with exclusive titles, Microsoft is also planning to bring advertisements to Xbox Game Pass.
The advertisements might be shown at pre-roll and then allow players to play the game or at the end of a chapter. Timdog mentioned the example of Yakuza titles, saying that the players might have to see five minutes of advertisements and then proceed to the game. He added that Xbox would go “full-blown” with this, and they would also use AI, such as AI community managers on X/Twitter.
There were rumors in December last year that Microsoft was planning on allowing players to access Xbox Game Pass for free in exchange for watching ads. This was said to be implemented in certain regions that are low in terms of console sales. While it hasn’t been confirmed so far, the new leaks surely point in that direction.
Moreover, it might not just be the free Game Pass anymore; it could be implemented for all tiers, despite players paying for any tier of the service. It’s not yet known how Xbox would offer this Game Pass model if it decided to include the advertisements in Xbox Game Pass.
What Is Xbox Planning to Bring Ads to Game Pass?
There have also been reports that the ad-supported business model might reach the production stage by 2024, and since we’re already two months into the year, ads may be coming soon. There were also rumors that Game Pass would come to PlayStation, but that was refuted by Phil Spencer. But with the leaked deal with PlayStation, it makes one wonder if that could happen too.
Timdog explained that Game Pass is being seen as unsustainable by Microsoft executives, and the current market for the subscription service is not enough for the company to offset the costs. Xbox head Phil Spencer has previously said that even though Xbox Game Pass is profitable, it needs a nearly $1 billion investment to keep going and provide the best services for its subscribers.
This large sum of money is needed to keep bringing third-party games to the service, allowing Xbox to offer numerous titles to its players.
However, it would be a massive move from Microsoft as it looks to generate more revenue, and this is just one of the rumored strategies to make more money.
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