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[IbizaPocholo]

Is Microsoft exploring a cheaper ad-supported Xbox Game Pass 'Lite'?

With Xbox Live Gold thrown in?

www.windowscentral.com

A recent confluence of events has led some (including me) to speculate that Microsoft could be exploring a cheaper tier of Xbox Game Pass, supported by ads.

Appears a recent survey that was sent out to some Xbox users, asking how they'd feel about an additional tier of Xbox Game Pass.

If real, the purported tier would cost $3 dollars per month, and provide access to a variety of Xbox Game Pass content with some fairly generous limitations. It would include an EA Access-like vault of past first-party Xbox games, with a similar 6-month delay on new Xbox games from hitting the service. Those who accessed these download-only Xbox games via this tier would be asked to view an ad before the game starts rolling.

Assuming the above table is real, this tier also includes online multiplayer access, which is currently $9.99 per month and offers no games beyond the severely-diminished Xbox Live Games with Gold program. Games with Gold now generally only includes two Xbox One indie titles per month, and has been the subject of criticism and derision for some time.

This supposed ad-supported tier would aggressively undercut the monthly tier of Xbox Live Gold, potentially becoming a head-scratcher in this equation. Would Microsoft really be willing to sacrifice the $10 per month Xbox Live Gold subscription for this far cheaper version which also includes vast amounts of the best Xbox games? Would ad revenues be able to make up for the potential shortfall here? I, for one, am skeptical. Microsoft does offer Xbox Live Gold at $60 per year as well, working out to $5 per month, but even at this price, there's still a deficit to account for when accounting for millions of users.

Whether or not the economics works in this scenario is up for debate, but it certainly seems as though Microsoft is exploring an ad-supported tier of Xbox Game Pass in some format. A recent patent filed by the company covers technology that predicts when in-game interactivity has decreased, perhaps due to a loading screen for example. Then, Xbox would serve up an ad based on the user's privacy settings and interests. Online ads have been a growing segment of Microsoft's Bing business for quite some time, and with other subscription services like Netflix exploring ad-supported tiers, it makes sense to see Microsoft explore the same route.

 

[bentanchorbolt]

Neat. Giving people more ways to play.

 

[feynoob]

They are increasing the price.
How the hell are they are going to make a cheaper tier with ads?

 

[Torrent of Pork]

Sounds like just first party stuff on a 6 month delay, phasing out Games with Gold while still maintaining roughly the same revenue without having to pay for GWG contracts.

Clever girl.

Edit - Also looks like no more 3 year stacked Gold conversion if there's no more Gold left to convert.

 

[GHG]

They are increasing the price.
How the hell are they are going to make a cheaper tier with ads?

The current price becomes the "cheaper" price. They need to get creative in how they are going to phase out Gold without a drop-off in revenue.

Imagine ads instead of loading screens (in games that have them) though

 

[Saber]

This has probably something to do with increasing the prices of their games. If all people run to GP, this price increase on games would be pointless. But increasing the price of BP would probably create a backlash, so I think they view this as a remedy.

Imagine ads instead of loading screens (in games that have them) though

I could see that easly spammed on Call of Duty. Loading screens, respawn delay and end of the matchs are all opportunities to be infested with comercials.

 

[Draugoth]

That could probably work, but if they managed to make a Free Option it would kill the competition.

 

[ReBurn]

• Create ad-supported version that's cheaper to get more people to sign up
• Ads piss people off because 30 seconds is too long
• People pay more for ad-less version

Some Microsoft marketing VP, probably

 

[feynoob]

Imagine ads instead of loading screens (in games that have them) though

Dont give me horrors

EA almost got away with that.
https://www.youtube.com/results?search_query=ea+ufc+4+in+game+advertising

 

[lachesis]

I think one way or another, it will come. Either a blatantly product placements in games, or ads or both.

I actually thought it will come a lot sooner as early as PS2 days with expanded space of DVD - and pretty impresses that it hasn’t caught up too noticeably…. But I think those will come.

 

[pasterpl]

Imagine ads instead of loading screens (in games that have them) though

Dont give me horrors

EA almost got away with that.
https://www.youtube.com/results?search_query=ea+ufc+4+in+game+advertising

Wonder if MS would have pay Sony for using their patent that Sony filled in in 2012;
https://www.eurogamer.net/sony-patents-method-to-interrupt-your-gaming-with-an-ad

 

[GHG]

Wonder if MS would have pay Sony for using their patent that Sony filled in in 2012;
https://www.eurogamer.net/sony-patents-method-to-interrupt-your-gaming-with-an-ad

They should. Jim is always hungry for more money.

 

[Nautilus]

Ugh.

I already don't like Gamepass because of what it potentially can do for gaming in general(undervalue games as they don't feel that x ammount of money is worth paying, and also favorying games that has microtransaction, since people are not paying anything upfront(for the devs, not MS)) but now with ads?

People think "Oh, that's just before you boot up the game", but if this catches on, I'll easily bet that it will be before the game boots, before a save is loaded, every hour of game, etc.

One thing is if the ad is incorporated in the game in a funny, cheeky way. This is totally different. Hope its false and if its not, that it fails.

 

[Spyxos]

Well, that's interesting. Netflix, with its cheaper advertising-based tier failed. Can it be different with games?

 

[graywolf323]

They are increasing the price.
How the hell are they are going to make a cheaper tier with ads?

I imagine it'll be like Disney+ who introduced the ad-supported tier at the old price while raising the ad-free tier significantly

 

[tommib]

The mobile ad-fueled experience now on your tv. Can’t wait to watch these in 4K/HDR:

 

[Unknown?]

Wonder if MS would have pay Sony for using their patent that Sony filled in in 2012;
https://www.eurogamer.net/sony-patents-method-to-interrupt-your-gaming-with-an-ad

Sony saw the direction Microsoft was headed and made sure to, in essence, charge them for bad practices.

 

[Duchess]

Netflix, with its cheaper advertising-based tier failed.

Ha, I didn't know this. Will be interesting to see how Disney+ performs. If that does badly, too, I'd suggest MS drop any plans they might have for Game Pass ads.

 

[Rykan]

I could see that easly spammed on Call of Duty. Loading screens, respawn delay and end of the matchs are all opportunities to be infested with comercials.

This seems so obvious that I'm genuinely surprised this isn't the case yet, especially in f2p games.

 

[ChorizoPicozo]

Aggressive panicking.

Failing to reach their projections two years in a row, lackluster/Dry AF AAA schedule release.

Next year prices going up and not really solving this AAA game releases....Xbox really needs to step up its competition.

 

[alabtrosMyster]

Don't they already play ads when you load games from time to time?

 

[Ozzy Onya A2Z]

MS PR when this goes live.

Jokes aside it's a decent "entry tier" onboarding offer. I wonder how much that could cannibalise GP sales though e.g. non-Xbox fans just go the free login for one title they want to play. I suppose that is what they want and over the next 1-2 years of your login being active you're likely to spend/upgrade something over time.

 

[reksveks]

Well, that's interesting. Netflix, with its cheaper advertising-based tier failed. Can it be different with games?

Source?

It's barely been out afaik to have an impact, probably will get an understanding next month or February with the earnings call.

 

[FoxMcChief]

Cool. More options.

 

[Swift_Star]

It really is following the Netflix model…

 

[remember_spinal]

 

[Iced Arcade]

Based on a restera poll lol

 

[CatLady]

I don't think I would mind product placement if it fit in with the game, but I wouldn't like actual ads in my games at all.

 

[Warablo]

Games with Gold is so not worth it these days, but would get some bad pr if they stopped

 

[lh032]

I thought gamepass supposed to be earning alot of money? extremely sustainable?
Why do something to piss off customers?

 

[reksveks]

I thought gamepass supposed to be earning alot of money? extremely sustainable?
Why do something to piss off customers?

Why would it piss off the customers who are paying for gamepass already? Your product hasn't changed.

It may piss off customers on Xbox Gold if it was the replacement when/if Gold gets discontinued.

 

[lh032]

Why would it piss off the customers who are paying for gamepass already? Your product hasn't changed.

It may piss off customers on Xbox Gold if it was the replacement when/if Gold gets discontinued.

but with ads.
Consumers are really sensitive on this, just look at the consumer reaction towards netflix ads version.

EDIT: oh i think i know what you mean, you mean customer still have the non-ad option right?
But that doesnt provide an answer to my question though.

 

[TLZ]

If viewing ads then people shouldn't pay anything. That's the whole point of ads.

 

[feynoob]

I thought gamepass supposed to be earning alot of money? extremely sustainable?
Why do something to piss off customers?

This is just like that gold shit.
I doubt MS is going that route, especially with price increase.

Still, its MS. They are fucking dumb when it comes to stuff like this. Adverstising is their saliva.

 

[reksveks]

but with ads.
Consumers are really sensitive on this, just look at the consumer reaction towards netflix ads version.

EDIT: oh i think i know what you mean, you mean customer still have the non-ad option right?
But that doesnt provide an answer to my question though.

Yeah, there will still be a non-ad tier currently at the same price.

I can see the argument if the price for the current tier/service increases that consumers will be pissed but that's not guaranteed and it's a slightly different topic.

 

[thegame983]

Imagine watching ads in 2022.

 

[Shadowstar39]

Ugh.

I already don't like Gamepass because of what it potentially can do for gaming in general(undervalue games as they don't feel that x ammount of money is worth paying, and also favorying games that has microtransaction, since people are not paying anything upfront(for the devs, not MS)) but now with ads?

People think "Oh, that's just before you boot up the game", but if this catches on, I'll easily bet that it will be before the game boots, before a save is loaded, every hour of game, etc.

One thing is if the ad is incorporated in the game in a funny, cheeky way. This is totally different. Hope its false and if its not, that it fails.

Yep. And just like that you see the fall of the console market as we know it to follow in mobiles app store footsteps of free to play iap, ad support trash. Get the masses of lowest common demoninator on board and end single player as well.

I hope all this is bogus news as this sounds horrible.

 

[xrnzaaas]

I don't see this becoming successful. Microsoft has been giving away 1$ Game Pass monthly subs too often and too long and many people got used to getting good deals (and waiting for the new ones). Now they're supposed to pay several bucks for a version with ads and no day1 games? Nope.

 

[Pelta88]

 

[Spyxos]

Source?

It's barely been out afaik to have an impact, probably will get an understanding next month or February with the earnings call.

https://digiday.com/future-of-tv/ne...-money-back-after-missing-viewership-targets/

 

[reksveks]

https://digiday.com/future-of-tv/ne...-money-back-after-missing-viewership-targets/

Just heard similar stuff.

Advertisers are still 'happy' with the performance but the reach/avails is rather shitty in those markets.

I don't know how Netflix is going to solve that issue in the key markets without increasing the number of ad slots. They are going to have to expands the number of markets quickly for advertisers.

 

[Spyxos]

Just heard similar stuff.

Advertisers are still 'happy' with the performance but the reach/avails is rather shitty in those markets.

I don't know how Netflix is going to solve that issue in the key markets without increasing the number of ad slots. They are going to have to expands the number of markets quickly for advertisers.

At the end of the day, they could get away with it. But it looks like there is not much interest at the moment. In addition, many do not even know that they get less content and not even 1080p.

 

[SportsFan581]

I had thought about the vault/release delay as a method to differentiate GP and GPU in a post Gold world, but never considered them going ad supported (though this still costs a few $ a month). I'll be sticking to an add free plan, but I can see where people might not mind it to get the low price. Especially in areas where household income is very low in comparison to the US/EU.

 

[Banjo64]

It won’t be cheaper. It’ll replace the £7.99 option, the current £7.99 option will become £9.99 and Ultimate will become £13.99. If it comes.

Adverts before starting Starfield? I certainly hope not. Sometimes Xbox make it blatantly obvious that they are part of Microsoft’s big ugly corporate mechanism.

 

[Banjo64]

Wait a minute…

£2.99 a month for Gold and Game Pass with a 6 month delay to releases? Actually yeah I’d be all over that like a rash.

God bless my beloved Microsoft overlord.

 

[sainraja]

Looks like they are exploring ways to offer Game Pass for a low price. I wonder how/what ad supported Game Pass will be like, does it mean they will be putting ads into games that are on Game Pass or ads on YOUR console dashboard while looking at Game Pass games?

 

[SportsFan581]

Looks like they are exploring ways to offer Game Pass for a low price. I wonder how/what ad supported Game Pass will be like, does it mean they will be putting ads into games that are on Game Pass or ads on YOUR console dashboard while looking at Game Pass games?

They have some patents regarding injecting ads into games during non-interactive moments (think waiting for the bus to get going in fortnite or respawning or something like that with PnP type deal), plus they could easily work an advertisement into the game boot process, where you generally get the splash screen. If it comes to pass it will be interesting to see how they go about doing it.

 

[Banjo64]

I still think they aren’t nailing down the right categories of choice.

I’d like to see a £4.99 a month xCloud only option. Perfect for phone gamers. Apple Arcade and Google Play Pass are the same price.

Seems a bit stupid that they want it on every device but to use it on mobile devices you need to pay for the highest tier.

 

[SportsFan581]

I still think they aren’t nailing down the right categories of choice.

I’d like to see a £4.99 a month xCloud only option. Perfect for phone gamers. Apple Arcade and Google Play Pass are the same price.

Seems a bit stupid that they want it on every device but to use it on mobile devices you need to pay for the highest tier.

An Xcloud only option at a low price would probably need to not include the game library and be a la carte. There is an additional expense to providing the streaming service, which is why both Sony and MS have incorporated it into the higher priced plans with the cheaper options being download only.

 

[Banjo64]

An Xcloud only option at a low price would probably need to not include the game library and be a la carte. There is an additional expense to providing the streaming service, which is why both Sony and MS have incorporated it into the higher priced plans with the cheaper options being download only.

Agreed. I’d be more than happy for it to only have Microsoft first party titles/curated third parties and for their to be a 6 month delay on new releases as mentioned in their survey above.

Right now though Gold is outdated and regular Xbox Game Pass is a pointless tier. Defo needs a re-jig.

Is a person without an Xbox likely to subscribe to Ultimate? In my opinion, no. So how will they expand their reach?