InnovationSoftwareTechnology

Microsoft Tests Free Xbox Cloud Gaming With Ads Amid Game Pass Price Hikes

Microsoft is testing a free, ad-supported version of Xbox Cloud Gaming that could provide an alternative to its increasingly expensive Game Pass subscription service. The move comes as the company faces declining console sales and subscription cancellations following recent price increases. This ad-supported model follows similar strategies adopted by streaming giants like Netflix and Disney+.

Testing a New Gaming Model

Microsoft has confirmed it’s conducting internal tests of a free, ad-supported version of Xbox Cloud Gaming, according to reports from The New York Times. This development arrives at a crucial moment for the company’s gaming division, which recently announced that Xbox Game Pass subscription prices will increase starting November 4th.

HardwareInnovationTechnology

Microsoft Confirms Next-Gen Xbox Console Development

Microsoft Gaming CEO Phil Spencer has confirmed the company will develop its next Xbox console as a first-party product. The announcement comes amid reports of significant internal pressure to improve profit margins within the Xbox division. Industry observers now expect the next console generation to launch between 2027 and 2028.

Xbox Reaffirms Hardware Commitment Amid Internal Pressures

Microsoft is pushing forward with development of its next-generation Xbox console despite what sources describe as significant internal turbulence within the gaming division. According to recent reports, the company has directed its Xbox leadership to achieve a demanding 30% profit margin target, creating pressure that reportedly contributed to widespread layoffs and canceled projects earlier this year.