Xbox is testing ads on streaming video games you already own

Has sparked heated debate among gamers, Xbox has begun testing ads on streaming video games that users already own. For those who have grown accustomed to the seamless experience of playing their favorite games, the idea of sitting through ads before gameplay sessions may seem jarring. But for Xbox, this is a calculated risk aimed at generating new revenue streams. According to an announcement on Xbox Wire, the company is running a trial period for members of the Xbox Insider programme, where users can stream select games at no extra cost, but with ads.

Xbox has a history of experimenting with in-game advertisements, but this is the first time it has ventured into the realm of streaming video games. The company has posited the idea of incorporating ads into games before, but only now is it putting it into practice. The trial period is limited to select games, and ads will only play before the start of a gameplay session. This means that users won't be interrupted mid-game, as some might fear. However, the novelty of this approach is likely to wear off, and the focus will shift to the ads themselves.

Regular players have shown to be actively hostile to in-game advertisements, especially if they don't make sense within the game world. Some games have experimented with literal ads, with NBA 2K21 being heavily criticized for adding unskippable ads in its loading screens. EA's attempt to do something similar with UFC 4 was met with a severe backlash, prompting the company to hastily remove them. Xbox is aware of this trend, but it believes that incorporating ads into streaming video games can be done differently.

According to Xbox, the problem with past in-game ads is that they haven't been built with the player in mind. The company argues that ads can create value for players if done well, by helping to lower the cost of access and expanding audiences through new ways to play. This is a bold claim, especially given the negative reaction to in-game ads in the past. However, Xbox is banking on the idea that users will be more receptive to ads in a streaming context, where the cost of access is already lower.

Xbox is testing its ad-supported streaming model through the Xbox Insider programme, a community of users who provide feedback on new features and updates. The trial period is limited to select games, and users can opt-out if they prefer. This is a cautious approach, given the potential backlash from users. However, it also allows Xbox to gauge user reaction and make adjustments before rolling out the feature more widely.

The gaming industry is evolving rapidly, with new revenue streams emerging all the time. Cloud streaming is one of the fastest-growing areas, and Xbox is keen to capitalize on this trend. By testing ads on streaming video games, the company is exploring a new way to generate revenue without compromising the user experience. Whether this will be a successful strategy remains to be seen, but it's clear that Xbox is willing to take risks to stay ahead of the curve.

As a writer, I'm struck by the tension between the company's desire to generate revenue and the user's desire for a seamless gaming experience. While Xbox is convinced that ads can create value for players, the jury is still out on this one. Will users be receptive to ads in a streaming context, or will they rebel against this new revenue stream?