Microsoft is testing an exciting innovation for its cloud gaming service. According to reports, Xbox Cloud Gaming with ads is in the testing phase. This new system will allow players to watch pre-game ads and access select games for free.

Is Xbox Cloud Gaming with ads feasible?

Cloud gaming is a very costly technology due to server hardware and bandwidth. Microsoft currently covers these high costs with monthly Game Pass Ultimate subscription fees. However, a free model is much more difficult to cover.

According to a survey sent to Xbox Insider members, the planned model relies on “pre-game video ads.” The biggest question here is cost. Industry experts note that a single 30-second ad (with a low cost per advertiser) is unlikely to cover the server costs of a long gaming session.

Therefore, Microsoft could impose some restrictions to make the free tier profitable. For example, players could be limited to a daily playtime limit or the catalogue could be limited to older games. The company’s main goal with this model is to attract new players to the ecosystem and encourage them to subscribe to paid subscriptions.

So, what are your thoughts on this ad-free Xbox model? Share your thoughts with us in the comments!