Microsoft is reportedly considering a new strategy to expand its game streaming service, xCloud, to untapped markets such as Africa, India, and Southeast Asia. Xbox Gaming CFO Tim Stuart recently discussed the idea of offering free game streaming in exchange for advertisements during the Wells Fargo TMT Summit. By leveraging the company’s xCloud service, players would have the opportunity to enjoy the vast catalogue of games available on Xbox Game Pass Ultimate through a simple subscription.
If this plan becomes a reality, it could revolutionize the gaming experience for mobile gamers. Instead of making premium game purchases, which many players in these regions cannot afford due to poor regional pricing, they could opt for free game streaming by watching short ads. This presents an affordable and accessible option for gamers in countries like India, where piracy is prevalent due to the high cost of games. With a good internet connection, players would be able to access the entire library of games offered on Xbox Game Pass.
The primary goal of Microsoft is to make its game subscription service available on as many screens as possible. Offering free game streaming in exchange for ad-viewing seems like a promising route to achieve this. By targeting regions where consoles are not the primary gaming devices, Microsoft can tap into a large audience that they would have otherwise been unable to reach. This innovative approach allows the company to introduce its business models to millions of potential gamers who were previously underserved.
Microsoft has been actively exploring different business models to make Xbox Game Pass more accessible. In the past, they have surveyed Xbox Insiders about providing more Game Pass time in exchange for viewing advertisements. The company has also considered a low-priced ad-supported Game Pass subscription with limitations, such as a delay on new game releases. These initiatives aim to attract a broader user base and create new opportunities in markets where traditional game purchases are not feasible.
During the presentation, Stuart mentioned the possibility of bringing Xbox Game Pass to rival platforms such as PlayStation and Nintendo. However, CEO Phil Spencer quickly shut down this idea, emphasizing the importance of the Xbox ecosystem. Despite this setback, Microsoft has been exploring alternative avenues to expand its reach. Recent reports suggest that Xbox is planning to launch a mobile storefront through a dedicated application, bypassing traditional app stores’ security measures. This would allow Xbox to avoid paying a cut on every purchase made through the platform.
In addition to expanding its game streaming services, Microsoft is also investing in AI game development. The company has partnered with Inworld to foster the creation of AI-powered games. This partnership will enable future studios to transform prompts into fully-fledged dialogue and questlines, enhancing the overall gaming experience. By embracing AI in game development, Microsoft aims to push the boundaries of innovation and create immersive worlds for players to explore.
Microsoft’s plan to offer free game streaming in exchange for advertisements demonstrates the company’s commitment to reaching underserved markets. By leveraging the xCloud service and exploring new business models, they hope to make Xbox Game Pass available to a wider audience. This innovative approach provides an affordable and accessible way for mobile gamers to enjoy a vast library of games. With the potential expansion to rival platforms and investment in AI game development, Microsoft continues to push boundaries and shape the future of gaming.
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