Microsoft looks set to roll out a free version of Xbox Cloud Gaming soon, but there’s a catch: ads. Over the weekend, users spotted new loading screens in the Xbox app mentioning “1 hour of ad-supported playtime per session,” which pretty much confirms what’s been rumoured for months.

Back in October, reports revealed Microsoft had been quietly testing an ad-supported tier internally, with sessions capped at one hour and total usage limited to about five hours per month. That framing already suggested this wasn’t meant to replace Game Pass, but more like a controlled trial version of cloud gaming, something you dip into, not live on.

Sources familiar with the tests say players can expect roughly two minutes of preroll ads before a game starts. No mid-game interruptions, at least for now, but still enough to remind you this is the “free” tier. The service will reportedly allow players to stream some games they already own, try out select Free Play Days titles over weekends, and access Xbox Retro Classics, all with ads upfront.

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Microsoft officially confirmed it was testing ad-supported cloud gaming shortly after those early reports, and now that these messages are showing up in the app itself, it feels like public testing is close. Xbox Insiders will likely be first in line, with a wider rollout potentially following if things go smoothly.

Still, there’s room for concern here. Cloud gaming already struggles with issues like latency and performance consistency, and adding unskippable ads before play could be one extra barrier for players who just want to jump in quickly. Whether this feels like a fair trade-off or unnecessary friction probably depends on how badly someone wants free access versus convenience.

The Takeaway

Microsoft is clearly experimenting with lowering the entry barrier into its gaming ecosystem, but this doesn’t feel like a generosity play as much as a discovery funnel. Free with ads might work for curious players or casual sessions, but it’s unlikely to replace subscriptions for anyone serious about gaming. The real question isn’t whether this launches, it’s whether players actually stick around once the ads roll.

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