Microsoft Testing Free Ad-Supported Version of Xbox Cloud Gaming

Microsoft is preparing to roll out an ad-supported version of Xbox Cloud Gaming, marking a major step toward expanding free access to its streaming platform. According to the sources, the company has already begun internal testing of ad-supported game streaming. This trial allows employees to play select titles without needing an Xbox Game Pass subscription.

The upcoming version will allow players to stream certain owned titles, along with Free Play Days games, which are available for a limited time during special weekends. Additionally, users will gain access to Xbox Retro Classics, giving them the chance to experience older titles through cloud streaming.

Insiders familiar with Microsoft’s tests reveal that users currently see around two minutes of preroll ads before each free session begins. The company is also experimenting with one-hour play sessions, offering up to five hours of free streaming per month. These limits, however, could change before the official launch.

Microsoft plans to make the ad-supported version available across PCs, Xbox consoles, handheld devices, and web browsers. A public beta is expected soon, followed by a full rollout in the coming months.

This development comes shortly after Microsoft expanded Xbox Cloud Gaming access to its Game Pass Premium and Essential tiers. The change coincides with a 50 percent price increase for Game Pass Ultimate subscribers and a broader restructuring of the service.

Xbox Cloud Gaming also officially exited beta this week. Game Pass Ultimate members can now stream select games in 1440p resolution at 30 Mbps, while other titles stream in 1080p at 20 Mbps. Premium and Essential users, however, remain capped at 1080p resolution and 12 Mbps bitrates.

The ad-supported plan has been in the works for some time. Microsoft Gaming CFO Tim Stuart hinted at a free version nearly two years ago. More recently, Jason Ronald, Microsoft’s VP of Next Generation, said the initiative aims to make Xbox Cloud Gaming “more affordable and accessible” for players across regions and devices.