Microsoft is reportedly developing a free version of Xbox Cloud Gaming, independent of the Game Pass subscription. According to a leak from Friday (Oct 3), this new tier will allow users to play select titles in exchange for watching advertisements before starting a session.
Sources cited by The Verge claim that the “Free Xcloud” version is already being tested internally by Microsoft employees. Players in this tier will be able to access their owned games, Xbox retro classics, and titles from the “Free Play Days” campaigns.
Two Minutes of Ads Before Playing
Insiders familiar with the testing phase revealed that Free Xcloud will show up to two minutes of ads before granting access to gameplay. Additionally, Microsoft is considering a one-hour session limit, with a maximum of five hours of free play per month — though these restrictions may change before the official rollout.
The service will reportedly be available across PC, Xbox consoles, handheld devices, and browsers, though mobile and smart TV app support remains uncertain.
Free Tier Testing and Launch Plans
Rumours suggest that Microsoft is organising a public testing phase of the free cloud gaming service in the coming months, ahead of its formal launch.
The move comes shortly after Xbox Cloud Gaming officially exited beta, making its full suite of features available to all Game Pass tiers — Ultimate, Premium, and Essential.
However, this initiative coincides with widespread backlash over recent Game Pass price increases. For instance, the Game Pass Ultimate subscription doubled in price, sparking online criticism and cancellations among players.
While the free version will offer broader access, it’s expected to deliver a lower-quality experience compared to Game Pass tiers.
Currently, Game Pass Ultimate offers up to 1440p resolution with a 30 Mbps bitrate, while Premium and Essential plans reach 1080p and 12 Mbps, respectively. The free version will likely feature reduced resolution and bitrate, serving as a gateway to encourage users to upgrade for better performance and image quality.
An Ad-Supported Gaming Future?
If confirmed, the Free Xcloud model would mark Microsoft’s first major experiment with ad-supported cloud gaming. Analysts see it as a strategy to expand the Xbox ecosystem by reaching new audiences while maintaining a pathway to paid subscriptions.
Although Microsoft has not officially confirmed the project, the growing number of internal tests suggests that an announcement could arrive soon.
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