Xbox is chasing a new way to get more people streaming games. On Thursday, Microsoft announced that select Xbox players will be able to stream select games after watching ads, similar to how ad-supported tiers of streaming services like Netflix, HBO Max, and Prime Video function.
Microsoft’s initial test is limited. It’s only available to members of the Xbox Insiders program and only applies to games that those customers already own. Players have a one-hour session limit across supported devices. In a post on Xbox Wire, the Xbox team says that “The core game experience is unchanged” and that “This is optional. Players can choose other ways to play at any time.”
The company says that it’s running the test and its ad-supported streaming option “with the player in mind.”
“Advertising has existed in gaming for decades, from in-game placements to free-to-play models,” Microsoft said in its announcement. “But it hasn’t always been built with the player in mind. When done well, advertising can help lower the cost of access. It creates another way for players to get into games without an upfront streaming purchase and expands audiences through new ways to play.”
The ads “do not interrupt the flow of gameplay,” the Xbox team says, and promises that they will “hold ads to the same quality bar as our content.”
“We’ll learn from this test and continue to improve it based on how players use it and what they tell us,” the Xbox team says. “Our goal is simple. Give more people more affordable ways to play.”
Affordability is top of mind for Microsoft’s gaming division right now, especially in the wake of massive Xbox console price hikes. After raising Xbox Series X and S console prices in 2025, Microsoft has another big price hike coming on Aug. 1. The standard Xbox Series X will soon cost $799.99, while the cheapest model, an Xbox Series S with 512 GB of storage, will soon cost $499.99. Microsoft has recently pushed financing and Buy Now, Pay Later plans, and suggested that used consoles offer the most affordable way in to the Xbox ecosystem
Microsoft is also making big cuts within its Xbox division. The company announced 3,200 layoffs in the games group are coming over the course of the year, and is shedding at least game four studios in severe cost-cutting measures.
