Microsoft to Launch Free, Ad-Supported Xbox Cloud Gaming with Monthly Limits
▼ Summary
– Microsoft is testing a free, ad-supported version of Xbox Cloud Gaming that won’t require a Game Pass subscription and will launch on multiple platforms.
– The free tier may include about two minutes of ads before gameplay and limit users to one-hour sessions with up to five hours of free play per month.
– Xbox Game Pass Ultimate’s price increased from $19.99 to $29.99 monthly, justified by more day-one releases and added benefits like Fortnite Crew and Ubisoft+ Classics.
– Industry figures have criticized Game Pass as an unsustainable business model that damages the industry, though Microsoft reports high creator participation and record revenue.
– Microsoft has faced backlash over various price increases, including for games and consoles, while also adjusting some planned price hikes after consumer feedback.
Microsoft is reportedly preparing to introduce a free, ad-supported version of Xbox Cloud Gaming, expanding access to players on PC, Xbox consoles, handheld devices, and the web without requiring a Game Pass subscription. According to sources, the company is currently conducting internal tests for this new offering, with a public trial expected soon and a full rollout planned in the coming months.
Insider details suggest that users will view roughly two minutes of advertisements before beginning a free streaming session. Microsoft is also evaluating a system that limits each free play session to one hour, with a total monthly allowance of up to five hours. These specific terms, however, may be adjusted before the official launch.
This development follows Microsoft’s recent decision to increase the monthly cost of Xbox Game Pass Ultimate from $19.99 to $29.99, a move that sparked considerable discussion among the gaming community. To help justify the higher price point, Microsoft has expanded its day-one release offerings to 75 titles annually and integrated new partner benefits, including Fortnite Crew and Ubisoft+ Classics. Additionally, the cloud gaming service has officially exited its beta phase and received streaming quality enhancements.
At the same time, the company appears to have quietly discontinued the 10% discount on downloadable content for Game Pass titles that was previously available to Ultimate subscribers, shifting focus toward its updated Rewards program instead. Microsoft stated that the new Ultimate pricing reflects the service’s expanded catalog, additional partner perks, and improved cloud gaming features.
The updated subscription cost took effect on October 1 for new members and will apply to existing subscribers starting November 4. As part of the same announcement, Microsoft added over 45 new titles to Game Pass, such as Hogwarts Legacy.
The introduction of a free, ad-based cloud gaming tier arrives amid broader industry scrutiny of the Game Pass model. Critics, including former Bethesda executive Pete Hines and other industry veterans, have raised concerns about the long-term viability of subscription services. Raphael Colantonio, founder of Arkane Studios, publicly described Game Pass as an “unsustainable model” that could disrupt traditional game sales, suggesting it is heavily subsidized by Microsoft’s resources.
Despite these critiques, Microsoft maintains that both creator involvement and player engagement within Game Pass have reached record levels. Although the company did not disclose updated subscriber numbers recently, it reported that the service achieved a new annual revenue record, nearing $5 billion this year following major releases like The Elder Scrolls Oblivion: Remastered, Doom: The Dark Ages, and Indiana Jones and the Great Circle.
The cost of engaging with the Xbox ecosystem has been a recurring topic in recent months. After initially announcing a price increase to $80 for some upcoming holiday titles, Microsoft reversed course, keeping new game releases at $70, as seen with The Outer Worlds 2. The company also raised console prices in the U.S., citing macroeconomic conditions, and set premium price points for new hardware, including the $999.99 ROG Xbox Ally X handheld and the $599.99 ROG Xbox Ally.
(Source: IGN)
