Xbox's Cloud Gamble: Ads, Layoffs, and a Skyrocketing Hardware Market
Microsoft’s ad-supported cloud gaming initiative faces turbulence as hardware prices surge and layoffs reshape the company’s strategy.
Last year, an Xbox official confirmed the company would experiment with free ad-supported cloud gaming, though the feature remains unconfirmed by Microsoft.
Industry analysts note that AI-driven demand has pushed GPU and SSD prices to record highs, accelerating interest in cloud services.
Meanwhile, Microsoft’s 2023 restructuring saw project cancellations and workforce reductions. UK console sales for Xbox hit a five-year low in 2025, compounding pressure on the division.
