- Key Update: Microsoft is reportedly nearing launch of an ad-supported free tier for Xbox Cloud Gaming.
- Last Update: January 20, 2026
- Insider reporting says Microsoft has tested it since October 2025, with user pop-ups mentioning 1 hour ad-supported sessions.
- Ads are expected to play before sessions, while Game Pass cloud gaming remains ad-free.
- The tier may let users stream owned games via “Stream Your Own Game” without a subscription.
Microsoft appears to be closing in on a long-rumored ad-supported “free tier” for Xbox Cloud Gaming, based on a growing pile of reports and recent user sightings.
Xbox Cloud Gaming (formerly known as xCloud) has been available since 2019, but for most of its life it has been positioned as a Game Pass perk, especially tied to Game Pass Ultimate — meaning you needed an active subscription to stream games via the cloud.
However, as cloud gaming continues to scale and Microsoft leans harder into streaming on more platforms, it’s starting to look like a separate freemium tier is on the way for non–Game Pass users.
What Proof Is There That Microsoft Is Preparing It?
According to prominent insider and journalist Tom Warren, Microsoft has reportedly been testing this feature internally since at least October 2025, and it may be approaching a public rollout, especially after an image surfaced showing messaging that states “1 hour of ad-supported playtime per session.”
That claim has been echoed by player reports of pop-ups appearing when cloud sessions begin, suggesting the system may already be active in some capacity behind the scenes.
How Would Ad-Supported Cloud Gaming Sessions Work?
In this reported model, users would likely need to watch a short ad break (often around two minutes) before play begins, after which they’d be granted a limited cloud gaming session (commonly described as one hour at a time).
It’s still unclear whether a single ad will always unlock the full hour or if Microsoft will test different formats, but the reports agree on one thing: ads appear to run before sessions, not during gameplay, so players likely won’t face repeated interruptions mid-match.
Will Ads Affect Xbox Game Pass Subscribers?
Importantly, this isn’t expected to introduce ads into the existing paid experience, as Game Pass subscribers should remain ad-free, with ads reserved specifically for the separate freemium tier.
As for what users will actually be able to stream, the reporting suggests Microsoft intends this free tier to support the wider Xbox Cloud Gaming ecosystem, which now includes not just Game Pass titles but also the growing “Stream Your Own Game” library (cloud-enabled purchases).
That means, in practice, the free tier could strongly appeal to players with digital Xbox libraries who want to stream without paying monthly, offering an easy on-ramp that avoids expensive hardware — basically an ad-funded update to Stadia’s original vision.
What Devices And Regions Would It Be Available In?
The service is expected to roll out across the same devices already supported by Xbox Cloud Gaming, including Xbox consoles, PC, mobile, and handheld platforms — such as Windows handhelds and even the Steam Deck via browser/cloud access — and should launch in the same regions where Xbox Cloud Gaming is currently available (around 29 countries).
That said, some sources note Microsoft may also enforce additional limits beyond session time, including reports that it might cap total access at something like five hours per week, which would prevent free users from endlessly streaming without paying.
Overall, cloud gaming isn’t cheap to operate, so Microsoft can recoup some of those costs through ad revenue while using the free tier as an onboarding funnel that pushes users toward subscribing once they reach limits.
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