Microsoft Prepares Free Ad-Supported Xbox Cloud Gaming Launch, Internal Tests Underway

Microsoft is advancing plans to introduce an ad-supported version of Xbox Cloud Gaming, according to sources close to the company. The software giant has initiated internal testing of the free game streaming service, allowing employees to access select titles without an Xbox Game Pass subscription.

This upcoming free tier is expected to include the ability to stream some games users already own, eligible Free Play Days titles, and Xbox Retro Classics. Internal tests reportedly feature approximately two minutes of preroll advertisements before a game begins streaming. Session limits are currently being tested at one hour, with a monthly cap of five free hours, though these parameters may be adjusted before the official launch.

The ad-supported Xbox Cloud Gaming experience will be accessible across a wide range of platforms, including PC, Xbox consoles, various handheld devices, and via web browsers. Microsoft intends to roll out a public beta test in the near future, with a full launch anticipated in the coming months.

This initiative aligns with Microsoft’s recent expansion of Xbox Cloud Gaming access to its Xbox Game Pass Premium and Essential plans, coinciding with a Game Pass revamp and a 50 percent price increase for Ultimate subscribers. Xbox Cloud Gaming also recently exited its beta phase, now offering Ultimate members 1440p resolution streaming at up to 30Mbps, and 1080p streaming at up to 20Mbps for other titles. Premium and Essential subscribers will be limited to 1080p resolution and a 12Mbps bitrate.

The concept of an ad-supported free tier has been in development for some time, with Microsoft Gaming CFO Tim Stuart having hinted at it nearly two years ago. Microsoft’s VP of next generation, Jason Ronald, emphasized the company’s goal to make Xbox Cloud Gaming more affordable and accessible, opening doors to new regions and access methods for cloud gaming.

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