Xbox Is Testing Free, Ad-Supported Cloud Gaming

Microsoft is testing a way for folks to stream certain games they own for free. Rather than paying for Game Pass to access cloud gaming features, Xbox insiders will be able to stream select games from their libraries at no extra cost. They’ll just need to watch some ads first.

These ad-supported cloud gaming sessions have a one-hour time limit, just like on GeForce Now. The test will be available for a limited time, Microsoft said. The company noted ads won’t interrupt gameplay and that it holds “ads to the same quality bar as our content.” It will also “make sure ads fit what players expect on each platform.” It was reported last year that Xbox had an ad-supported cloud gaming service in the works.

Microsoft is pitching this as a way to “give more people more affordable ways to play,” just days before it once again increases the prices of Xbox consoles. The company has jacked up the prices of Game Pass subscriptions over the last couple of years too though it did backtrack a bit a few months ago. 

Xbox leaders recently said the division was running on very thin profit margins and stated that couldn’t continue. Xbox is cutting around 3,200 jobs as part of a reorganization that involves divesting studios and reportedly cancelling some games as it refocuses on its bigger franchises. All of this is in service of improving Xbox’s bottom line. An ad-supported streaming option could help with that to some degree.

As it happens, Microsoft announced this test on the same day that Amazon started integrating its Luna cloud gaming service into the Prime Video app.

Update, July 23, 2026, 1:00PM ET: Added context about the current state of the Xbox business.