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Microsoft Mulls Launch of Free Xbox Cloud Gaming with Ads

Microsoft plans a free ad-supported Xbox Cloud Gaming tier with session limits and preroll ads to expand access beyond paid Game Pass subscribers, sources say.

  • On October 3, The Verge reported Microsoft will soon announce free ad-supported Xbox Cloud Gaming and is testing it internally with employees.
  • Microsoft has said recently it aims to make Xbox Cloud Gaming more accessible, following Wednesday's Xbox Game Pass reorganization and an $11 Ultimate price hike in Canada, plus last month's console increase.
  • Internal trials include two minutes of preroll ads, one-hour session limits, five free hours per month, and streaming of owned games, Free Play Days titles, and Xbox Retro Classics from Activision.
  • Players may note that premium 1440p streaming remains exclusive to Game Pass Ultimate at $30/month amid frustration over thousands of layoffs and the $69 billion Activision Blizzard acquisition.
  • A public beta is expected soon for Xbox Cloud Gaming with ads, ahead of a full launch in the coming months; ad-based streaming, like Square Enix’s Coreonline in 2012, remains rare.
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  • 75% of the sources lean Left
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Gamespot broke the news in United States on Friday, October 3, 2025.
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