Microsoft is reportedly preparing to launch an ad-supported version of Xbox Cloud Gaming, allowing users to stream select games for free without needing a Game Pass subscription. According to sources cited by The Verge, internal testing for this new model is already underway within the company.
The free tier will reportedly let players stream some owned games, Free Play Days titles, and a selection of Xbox Retro Classics. Early tests show that players will see around two minutes of pre-roll ads before each free session begins. Each session is currently limited to one hour, with users getting up to five hours of free gameplay per month, though these restrictions could change before the official launch.
The ad-supported version will be accessible across PCs, Xbox consoles, handheld devices, and web browsers, with Microsoft planning a public beta test before rolling out the full release in the coming months.
This move coincides with Microsoft’s recent expansion of Xbox Cloud Gaming to include Game Pass Premium and Essential subscribers for the first time, as part of a broader Game Pass overhaul that also introduced a 50% price hike for Ultimate subscribers.
Additionally, Xbox Cloud Gaming has exited beta, now offering 1440p streaming at up to 30Mbps for Game Pass Ultimate members, and 1080p streaming at 12Mbps for Premium and Essential tiers.
The idea of a free, ad-supported version isn’t new — Microsoft Gaming CFO Tim Stuart hinted at such plans nearly two years ago. More recently, Jason Ronald, Microsoft’s VP of next generation, reaffirmed the company’s commitment to making Xbox Cloud Gaming more affordable and accessible, especially for new regions and alternative access models.

