Microsoft's Xbox division announced plans to test an advertising-supported model for streaming video games, aiming to provide more affordable access to gaming. This initiative comes as Xbox seeks to regain growth after a significant acquisition and a series of leadership changes.
Meanwhile, Amazon is integrating its Luna cloud gaming service into its Prime Video platform, which could increase user engagement by making it more accessible to casual gamers. Amazon's gaming head, Jeff Gattis, emphasized that the company is not targeting hardcore gamers but rather those who prefer not to invest heavily in gaming hardware.
Both companies face challenges in the cloud gaming market, including issues with internet reliability and previous negative consumer feedback regarding in-game advertising.
Despite these hurdles, Amazon aims to grow Luna's user base significantly, while Microsoft is exploring new revenue streams through advertising, reflecting a broader trend in the gaming industry towards more inclusive and cost-effective gaming solutions