Overview

• Microsoft is exploring the possibility of introducing a free, ad-supported tier to its Xbox Game Pass service, particularly targeting markets with high mobile usage but limited access to gaming consoles.
• The proposed model would allow users to access game streaming after viewing ads, similar to the model used by YouTube.
• Microsoft is targeting markets in Africa, India, and Southeast Asia, where a younger demographic with growing disposable income predominantly uses mobile devices.
• This move aligns with Microsoft's larger vision of making Game Pass available on every screen that can play games, be it mobile or PC.
• The introduction of an ad-supported Game Pass tier could help bolster the sales of the Xbox, especially in markets where the cost of subscriptions is a barrier.