We recently reported that Xbox seems to be having some troubles, with significant layoffs and a 100-day plan on the cards to bring the ship around. Some of Microsoft's issues include plummeting revenue, an affordability crisis, and low adoption rates. According to Xbox Gaming's Chief Stragety Officer, Matthew Ball, ad-supported tiers may be one potential tool to help improve things at Xbox. In an interview with The Game Business, Ball addresses the rising costs of gaming, saying that "the costs have gone up way too high on development, and at the same point, everyone feels terrible with prices going up on hardware or software or microtransactions. That is a challenge. It's not good if that is the only option." He goes on to compare it to streaming, noting that the vast majority of new streaming subscriptions in recent years have been on supported subscription tiers. The comparison to ad-supported streaming services suggests Ball is mostly talking about services like Xbox Game Pass, where there have been rumors of ad-supported tiers, or potentially even steeper subsidies for console hardware—an area Xbox is leaning into more and more since Asha Sharma took over as CEO in early 2026.

Despite his enthusiasm about the idea of ad-supported gaming experiences, Ball notes that he "has nothing to report on Microsoft's plans" regarding ad-supported gaming experiences. He is also careful to note that if such a strategy is adopted by Xbox, it would need to be in a way that doesn't interrupt gameplay. He went on to note that "The question is not 'Can we cram ads in everything?' The question is, 'Are there opportunities that allow the people who can't afford, or wouldn't try, to have an onboard to our properties and franchises?'" Following the interview, Ball posted on X to clarify what he meant in the interview, stating that "ads should be used to offer more affordable alternatives alongside today's ad-free experiences, in the hopes more could play as a result. Similar to how Netflix and Disney+ have ad-tiers with all the same content, but at half the price or so," and that "I personally believe interrupting gameplay experience would be bad." The apparent implication here is that any ads would be in places like loading screens, pause menus, and console home pages—parts of the Xbox experience that aren't in-game.