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# Xbox is testing ad-supported game streaming. Amazon is folding Luna into Prime Video. Both admit cloud gaming has not worked yet.

**[The Next Web](https://daily.dev/sources/tnw)** · 3 min read · 0 upvotes · 0 comments

## Summary

Microsoft and Amazon announced new cloud gaming strategies on the same day, both signaling that the category has underperformed. Xbox is testing ad-supported game streaming through its Insider Programme, offering one-hour sessions for games users already own in exchange for watching ads. Amazon is integrating Luna into Prime Video as a Games tab for all Prime subscribers, hoping to reach casual players through an existing platform they already use. Both pivots acknowledge years of low adoption. Cloud gaming's core challenge — latency over inconsistent internet connections — remains unsolved, and the business model changes don't address the underlying physics. Xbox CEO Asha Sharma has also cut subscription prices, announced a next-gen console for 2027, and laid off 20% of the division. Amazon is explicitly not targeting core gamers, instead aiming at casual players who want to try titles without owning a console — the same bet Google made with Stadia before shutting it down in 2023.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://thenextweb.com/news/xbox-ads-cloud-gaming-amazon-luna-prime-video>

---

Tags: [#gaming](https://daily.dev/tags/gaming), [#xbox](https://daily.dev/tags/xbox)

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