Free Xbox cloud gaming with ads on the way

Microsoft is internally testing an ad-supported version of Xbox Cloud Gaming and a widespread public beta for free streaming is coming soon, sources tell The Verge's Tom Warren.

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Xbox Cloud Gaming will soon be free with ads, allowing users to stream a selection of games without being tied to a paid subscription. The move comes as Microsoft officially launches its Xbox cloud product onto the market, and now we're seeing how it will make money on its own: With advertisements.

According to the report, Microsoft's free Xbox Cloud Gaming offering will let gamers stream a selection of titles that they have purchased across PC, console, handhelds, and on the web. To keep content rolling, and to entice people to play and watch ads, users can also stream the current Xbox Free Play Days titles, which includes a rotating lineup of games that can be sampled for free over a weekend, as well as a bunch of retro games. The current test phase has 2 minutes of ads per every 1 hour session, with 5 free sessions, or 5 free hours, per month. Bear in mind this is testing and the official launch hasn't been confirmed or announced, so we don't know these critical specifics just yet.

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This news doesn't come as a surprise if you've closely been watching Xbox coverage over the past few years. Back in 2023, I predicted that ads could be integrated into Game Pass, and now this is manifesting in a more widespread rollout that sees Xbox Cloud Gaming also being offered as a free product. Also in 2023, during the FTC vs Microsoft trial, Xbox CFO Tim Stuart indicated that free Xbox game streaming with ads could be offered at some point.

In January at CES 2025, Microsoft held a presentation focusing on advertising, saying that ads were the "key to reaching every gamer on the planet."

In July, Windows Central's Jez Corden reported that this was a possibility, and other industry analysts like Niko Partners' Daniel Ahmad also said that ad-supported content could happen at Xbox.