Microsoft Is Reportedly Preparing to Launch A Free Version of Xbox Cloud Gaming With Ads

Oct 3, 2025 at 12:14pm EDT
Xbox Series X and Series S consoles with controller surrounded by floating game covers including Psychonauts 2 and NFS Heat.

It seems that after hiking the prices for Xbox Game Pass by 50%, Microsoft isn't done making changes to its Xbox gaming services, as a new report from The Verge alleges that a new free version of Xbox Cloud Gaming is currently being internally tested, with a public test to be announced soon. The catch to this version being free is, unexpectedly, it'll be free *with ads.

How it'll work, according to The Verge, is that players will be able to stream free-to-play games, some games that players own, and a collection of Xbox Retro Classic titles. How the ads will work is that players will have to sit through two minutes of ads before they can stream a game, and they'll reportedly only get five free hours per month, in one-hour sessions.

Related Story RTX Spark To Encourage Industry Towards Lighter Laptops With Less Bulky Cooling Solutions, As Surface Laptop Ultra Targets A 110W TDP

It'll be available on PC, consoles, and handheld devices. The first public beta test is apparently coming "soon," with its full release set to be out "in the coming months."

We've had hints that Microsoft is looking to make Cloud Gaming "more affordable" before, which could easily be seen as the new price changes for Xbox Game Pass. Yes, the price for the service went up by 50%, but you no longer have to subscribe to Game Pass Ultimate to use Xbox Cloud Gaming, and can stream games through the cloud from the cheapest Essential tier.

This would go a step further, though it's worth considering who would be satisfied with one-hour sessions and a total of five hours across the span of a month. It feels like the kind of restriction that wouldn't exactly satisfy anyone who would want to stream games in the first place, pushing them to simply get an Essential Game Pass subscription for a reasonable experience.

Regardless, even with this tier being free, it's doubtful this would be met with enthusiasm and positivity from players. A console price hike, followed by the removal of cost-saving features and discounts for subscribers, now likely followed by more ads being pushed in front of players just trying to play some games don't exactly make for a winning public reception.

About the author: David has been writing about videogames, technology, and culture since 2020, with a focus on reporting daily news across multiple publications, including GameDaily.Biz, GameSkinny, and PlayStation Universe before joining Wccftech in 2025. David started contributing as Canada/US reporter for Wccftech's gaming section in 2025. Besides being up-to-date on the industry's movements, he loves interviewing developers, reviewing games, and writing intricate essays about the symbolism and layered meanings to be found in rich narratives as he's done for publications like GamesIndustry.Biz, LostInCult, and others. Outside of games he loves movies, music, theatre, his hometown, and his family, though not necessarily in that order.

Follow Wccftech on Google to get more of our news coverage in your feeds.