Microsoft tests free Xbox Cloud Gaming with ads: What you need to know

Microsoft is preparing a significant change to its Xbox Cloud Gaming ecosystem by testing a free, ad-supported version . The service will reportedly be available on PC, Xbox consoles, handheld devices, and the web , and will allow gamers to stream games without a Game Pass subscription.

The information comes from The Verge's Tom Warren , who notes that the company is already conducting internal testing of the service. The company is expected to launch a public test soon, with the final version expected to arrive within the next few months, offering an additional option for those looking to enjoy cloud gaming without paying for the full subscription.

According to reports, players will see approximately two minutes of ads before starting the game , and there will be a one-hour limit per session , with a maximum of five free hours per month . However, Microsoft could adjust these restrictions before the official launch.

This initiative seeks to expand access to Xbox games and attract users who aren't yet subscribed to Game Pass Ultimate , while also introducing an ad-based monetization model. The strategy follows the industry trend of offering free options with ads, like Spotify and YouTube , adapting it to the gaming sector.

The announcement of Xbox Cloud Gaming with ads comes shortly after Microsoft increased the price of Game Pass Ultimate from $19.99 to $29.99 per month . To justify the increase, the company expanded its game catalog on day one , adding 75 titles per year, and added services like Fortnite Crew and Ubisoft+ Classics .

Despite these improvements, some changes have sparked controversy, such as the removal of the 10% discount on DLC for Ultimate subscribers, apparently replaced by a new rewards program . Microsoft defended the increase, noting that it reflects a broader catalog, partner perks, and an improved cloud gaming experience .

Xbox Cloud Gaming already offers improved streaming quality , and the free version will give more players access to top titles. Microsoft has added more than 45 new games to Game Pass , including recent hits like Hogwarts Legacy , expanding the entertainment offering on its platform.

The combination of free-to-play games with ads and cloud integration represents a strategic move to stay competitive with PlayStation Plus, Nvidia GeForce Now, and other streaming services .

The Game Pass model has drawn criticism within the industry. Former Bethesda executives and former Microsoft employees have argued that the subscription model could be unsustainable in the long term , arguing that Microsoft's "infinite money" subsidizes a model that hurts developers and other platforms.

Raphael Colantonio, founder of Arkane Studios and WolfEye Studios, stated that Game Pass could harm the industry if it continues to expand without changes, and questioned its coexistence with other video game sales models.

Microsoft, for its part, claims that creator engagement and player interaction are at an all-time high, although it hasn't updated subscriber figures this week. The service has reached a record annual revenue of nearly $5 billion , driven by recent releases and new additions to the catalog.

In addition to streaming, Microsoft has confirmed the launch of premium portable consoles under the ROG Xbox Ally line, priced at $999.99 for the top-tier version and $599.99 for the standard version. These devices are intended to complement the Xbox Cloud Gaming experience, offering the ability to play high-quality titles anywhere.

The arrival of the free, ad-supported version aligns with this strategy, seeking to attract new players and encourage the use of portable devices and cloud services, without the need to immediately invest in paid subscriptions.

The trial of free, ad-supported Xbox Cloud Gaming represents a strategic move by Microsoft to expand its user base and offer more access options to its titles. At the same time, it seeks to balance the controversy surrounding Game Pass Ultimate and remain competitive against other video game streaming services.

If established, this free version could transform the way gamers access video games , paving the way for a more accessible and flexible experience that combines streaming, portable devices, and a premium catalog into a single platform.