Microsoft is reportedly preparing to introduce a free, ad-supported version of Xbox Cloud Gaming, marking a potential shift in how the company approaches access to its game-streaming platform. According to a report from The Verge, internal testing for the new tier is already underway, allowing select employees to stream games without an Xbox Game Pass subscription—provided they watch ads before playing.
The early version of the free tier reportedly includes a mix of content: titles players already own, time-limited “Free Play Days” demos, and retro games from Xbox’s library, including older Activision titles from the 1980s and 1990s. Access appears to be limited, with each gaming session capped at around one hour and a total of five free hours available per month. Before each session, players must sit through approximately two minutes of ads.
Public testing is expected to begin soon, likely through the Xbox Insider program. The service would be available across all major platforms where Xbox Cloud Gaming currently operates, including Xbox Series X and S consoles, Xbox One, PCs, handhelds, and web browsers.
If launched, the ad-supported tier would make Xbox Cloud Gaming the first major cloud service in the gaming space to offer a free-to-play option tied to advertising. It also reflects a growing trend across digital entertainment platforms, where subscription fatigue has pushed companies to explore alternative revenue streams. The model echoes what’s happening in streaming video, where services like Netflix and Disney+ have introduced ad-supported plans to attract cost-conscious users.
Still, the timing for this move is complicated. Microsoft’s gaming division has faced criticism over recent price hikes for Xbox Game Pass and hardware. The company recently adjusted pricing across Game Pass tiers and confirmed increased retail prices for its Xbox Series X and S consoles in the U.S., citing economic pressures. The backlash was significant enough to crash parts of the Xbox website as users rushed to cancel subscriptions.
A free tier for Xbox Cloud Gaming could help Microsoft offset some of that negative sentiment by expanding access to casual or budget-minded players, particularly in markets where console ownership remains limited. However, the company will need to balance monetization through ads with maintaining a smooth, low-friction experience—a key factor in whether the initiative can win over skeptical users.
As Microsoft continues refining its cloud gaming strategy, this test could determine whether ad-supported game streaming becomes a meaningful new on-ramp for the Xbox ecosystem or simply another experiment in a rapidly shifting subscription economy.
