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Microsoft’s Xbox Cloud Gaming to Launch Free, Ad-Supported Tier

Originally published on: January 20, 2026
▼ Summary

– Microsoft is nearing a test phase for a free, ad-supported version of its Xbox Cloud Gaming service with Xbox Insiders.
– The free service will offer one hour of playtime per session, with a limit of up to five hours per month.
– Users will encounter approximately two minutes of preroll ads before they can begin streaming a game for free.
– The ad-supported tier will allow streaming of some owned games, eligible Free Play Days titles, and Xbox Retro Classics games.
– An official announcement and public testing of this service are expected to begin in the coming weeks.

Microsoft is moving closer to launching a free, ad-supported tier for its Xbox Cloud Gaming service, a development that could significantly expand access to game streaming. The company has been conducting internal tests for several months and is now preparing to roll out the option to Xbox Insiders for broader feedback. This new model aims to lower the barrier to entry for cloud gaming by offering gameplay sessions without a subscription fee, supported instead by advertising.

Over the weekend, an update to the official Xbox app revealed loading screens referencing “1 hour of ad-supported playtime per session.” This detail aligns with the parameters of Microsoft’s internal testing, which has reportedly limited free sessions to one hour, with a monthly cap of up to five hours of total playtime. The service will function by including approximately two minutes of preroll advertisements before a user can begin streaming a game for free.

The free tier is designed to offer a taste of cloud gaming’s capabilities. Users will reportedly be able to stream select games they already own through the service. Additionally, it will provide access to try out eligible Free Play Days titles during promotional weekends and offer streaming for a catalog of Xbox Retro Classics games, all preceded by the short ad rolls. This approach allows Microsoft to monetize the service through advertising while giving players a no-cost way to experience cloud gaming.

Following initial reports of the testing phase late last year, Microsoft officially acknowledged it was experimenting with an ad-supported model. Industry observers now anticipate an official announcement and the start of a public testing period in the very near future. This strategic move could position Xbox Cloud Gaming to compete more directly with other free-to-play and ad-supported entertainment platforms, potentially attracting a new audience of casual or budget-conscious gamers.

(Source: The Verge)

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