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Xbox Game Pass Tipped for Cheaper Cloud Gaming Tier — Here's What We Know

Microsoft plans to lower the paywall for Xbox Cloud Gaming with an ad-supported free tier to expand accessibility and compete with Nvidia, Xbox execs said.

  • Microsoft is developing the next iteration of Xbox Cloud Gaming, with plans to explore more budget-friendly options that are separate from the Game Pass Ultimate subscription.
  • This effort builds on work from two years ago and responds to a legal battle that paused direct game sales via the Xbox app.
  • Jason Ronald emphasized many players use Game Pass Ultimate for cloud gaming and highlighted dedicated silicon co-designed with AMD to improve experiences.
  • Ronald explained that they are focusing resources on custom hardware designed to support advanced AI features, which will significantly enhance the way players engage with their games.
  • These moves suggest Microsoft aims to increase affordability and accessibility for cloud gaming, possibly introducing ad-supported or cheaper subscription tiers beyond Ultimate.
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Windows Central broke the news in on Monday, August 18, 2025.
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