Xbox Cloud Gaming to offer free tier, require Ad viewing

Xbox has officially confirmed that it is developing a free, ad-supported tier of Xbox Cloud Gaming, aimed at making its game streaming service more accessible amid rising subscription costs, according to The New York Times.

Microsoft’s announcement of a new ad-supported program, currently in internal testing, signals a significant strategic shift for the Xbox ecosystem. This move, confirmed by a Microsoft official, mirrors the ad-supported models increasingly adopted by various streaming platforms and was revealed alongside news of a Halo game releasing on PlayStation.

As reported by The Verge recently, the new free Xbox Cloud Gaming tier will let players stream select games, including owned titles, Free Play Days, and Xbox Retro Classics, without needing a Game Pass subscription.

However, each session will start with about two minutes of pre-roll ads, and streaming is limited to one hour per session, with a monthly cap of five free hours. On the positive side, this service will be available on PCs, Xbox consoles, handheld devices, and web browsers.

Currently, the service is in a trial phase and will soon enter a public beta before a full launch later this year. Notably, Microsoft has increased the Game Pass Ultimate price by 50%, to $29.99 monthly, as part of this ad-supported effort to offset the backlash from the recent price hikes.

Microsoft’s latest free tier aims to attract more users to the Xbox ecosystem, particularly those in regions or demographics less inclined to purchase subscriptions. This move mirrors the business model of content streaming platforms, which have successfully offered cheaper, ad-supported options to budget-conscious consumers.

Amidst gamer frustration over Xbox Game Pass restructuring (Essential, Premium, Ultimate tiers), an ad-based cloud gaming tier is confirmed. This free option, despite ads, provides unparalleled access to Xbox’s digital ecosystem, softening the blow of the new Game Pass tiers.