Microsoft May Be Preparing to Make Xbox Cloud Gaming Free—But With Ads

It looks like Microsoft is gearing up to launch a free, ad-supported version of its Xbox Cloud Gaming service. According to The Verge, internal testing is already underway, allowing company employees to play select games without a Game Pass subscription. Before each gaming session, users are shown a two-minute ad.

Currently, there are some restrictions: each session is limited to one hour, and the total free playtime is capped at five hours per month—though these terms may change by the time of the official launch.

Players will be able to access some of the games they already own, titles from the Free Play Days program, and classic Xbox Retro Classics—all for free. The service will be available on PC, Xbox consoles, portable devices, and via browser. Microsoft plans to launch a public beta soon, followed by a wider rollout.

This news comes as Xbox Cloud Gaming has officially exited beta. Game Pass Ultimate subscribers can now stream select games in 1440p at up to 30 Mbps, while others are limited to 1080p at 20 Mbps. Premium and Essential tiers are capped at 1080p and 12 Mbps. At the same time, Microsoft expanded cloud access to new tiers and raised the price of the Ultimate subscription by 50%.

The idea of a free, ad-supported version has been discussed at Microsoft for some time—first mentioned by Microsoft Gaming CFO Tim Stuart nearly two years ago. Recently, Xbox VP Jason Ronald emphasized that the goal is to make cloud gaming more accessible to players around the world.

By the way, after the news about the Game Pass Ultimate price hike, users noticed that the subscription cancellation page became overloaded.