Microsoft to launch free ad-supported Xbox Cloud Gaming tier amid price backlash

Microsoft Xbox

Microsoft is reportedly developing a free, ad-supported version of its Xbox Cloud Gaming service. The new model will allow players to stream a limited selection of games without paying for an Xbox Game Pass subscription. Users will, however, have to watch ads in exchange for gameplay access.

This development comes at a crucial time for Microsoft. Earlier this week, the company raised the price of its Xbox Game Pass Ultimate subscription from $19.99 to $29.99 per month. The move sparked frustration among subscribers, who pointed out that the plan now costs roughly $360 a year, twice its original price. Many users have cancelled their subscriptions in protest, making the timing of this free tier particularly interesting.

The ad-supported model, first reported by The Verge, will allow players to stream certain titles from their own game library along with a curated selection of Xbox Retro Classics and Free Play Days titles. However, it will not provide access to the full catalogue available to paid subscribers.

The trade-off is clear: users will exchange their viewing time for free gameplay. Ads will play during sessions, similar to what is already common in streaming platforms for video and music. While this approach may help Microsoft attract new users, it also highlights the company’s need to balance growth with user satisfaction following price hikes.

Reports suggest that Microsoft is testing this free model across consoles, PCs, handhelds, and web browsers. However, mobile device support has not been mentioned. The plan may also come with session limits. According to early reports, players may be restricted to one-hour sessions with a maximum of five free hours per month. Similar to NVIDIA’s GeForce NOW, users may need to restart a new session after each hour, potentially waiting in queue again.

While the idea of free Xbox Cloud Gaming sounds appealing, it clearly comes with strings attached. Limited access, time caps, and mandatory ads could make it less attractive for serious gamers. Still, for casual players or those unwilling to pay for Game Pass, this could be a reasonable way to try Xbox Cloud Gaming without committing financially.