Xbox confirms free game streaming with ads, clarifies how it'll work and ethos around monetization

Xbox has confirmed a new way to access and play games--in exchange for watching ads.

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Microsoft has officially announced its new gaming monetization strategy that brings console games to other platforms. The company today confirmed that it will offer an ad-supported version of cloud game streaming that allows users to watch short pre-roll advertisements in exchange for 1 hour of free cloud streaming. No subscription is required for Xbox's free streaming ad tier, and it will function similarly to NVIDIA's GeForce Now streaming service.

The feature went into public testing in the Xbox Insiders program today (anyone can sign up) and testers can stream select games that they already own for free.

Since this is potentially controversial, Xbox handled this move carefully by offering its ethos around its new ad-oriented strategy.

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. When done well, advertising can help lower the cost of access.

It creates another way for players to get into games without an upfront streaming purchase and expands audiences through new ways to play.

For brands, this only works if showing up here adds to the experience, not takes away from it.

Given that, we want to be clear about how we will approach ad-supported services across XBOX:

1. We start with the player. Ads should create value.
2. We do not interrupt the flow of gameplay.
3. We hold ads to the same quality bar as our content.
4. We're clear about what's advertising.
5. We make sure ads fit what players expect on each platform.

Xbox's chief strategy officer Matthew Ball said this on Twitter:

Frequently Asked Questions

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Question #1

Which games can testers stream for free through the Xbox Insiders public test?

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Question #2

Do players need an Xbox Game Pass or any subscription to use the free ad-supported streaming option?

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Question #3

Will the ad-supported streaming interrupt gameplay or only play ads before a session?

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Question #4

What platforms (PC, mobile, console, smart TV) will support Xbox’s ad-supported cloud streaming during the test?

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"Our overall goal is simple: to give players more affordable options to play. The goal of this public test is to see how players use ad-supported streaming and listen to their feedback."