Since its launch in 2017, the Xbox Game Pass subscription service has attracted more than 25 million people. However, for those not interested in a subscription, Microsoft is offering a potentially new model where gamers can see ads in exchange for a short amount of game time.
If gamers are to blame, it’s likely Sarah Bond, Xbox Corporate VP of Game Creator and Ecosystem. She said that she is always looking for an opportunity.Bring more diversity into business models» for game developers. “We talked about experimenting with other models. We ask ourselves: Why is advertising more common on mobile devices? Are there models that work well on PC and consoles?‘ Bond said. Bond’s announcement comes months after some Game Pass players noticed the Hispanic Opinion polldetailing how keen they were on a cheaper Game Pass tier that “pre-game advertisingThis commemorates Netflix’s recent launch of a low-cost, ad-supported subscription plan. Last year, Insider reported that Microsoft was working with ad agencies to “Allow advertisers to advertise within shareware Xbox games“.
Microsoft’s interest in in-game advertising isn’t new: in 2006, the company bought the in-game ad network Massive, but shut it down in 2010. However, this wave of in-game advertising in console games was overwhelmingly focused on messages set in the game world posted, for example on in-game billboards or even on NPCs offering other games.
In one of ResearchIn 2009 in-game advertising, the developers warned of gameplay disruption and felt marketing would prevent it “Disrupts the flow of the game, can cause irreparable damage” Brand. So far, we’ve observed that mobile gamers are largely accepting video ads as a price for access to shareware games. However, it’s not clear if such ad breaks would also be welcome during loading screens or between levels in AAA games.
With Microsoft noticing a slowdown in Game Pass subscriber growth in recent months, the company’s search for new revenue models is more urgent than ever. Recently, analytics company DFC Intelligence specifiedthis Game Pass “does not seem to be a sustainable long-term business model”primarily due to the fact that Microsoft needs to add a lot of valuable content to the service’s library in order to gain subscribers.