Microsoft Tests Ad-Supported Cloud Gaming for Xbox Insiders

Microsoft has launched a limited-time test for Xbox Insiders that allows users to stream select games from their own libraries for free, provided they watch advertisements. According to reporting from The Verge, these ad-supported sessions are capped at one hour, with ads playing only before the session begins. Users with paid cloud gaming subscriptions can opt out of the advertisements.

This initiative follows internal testing conducted late last year. The Verge reported that those earlier tests included approximately two minutes of preroll ads. Microsoft stated the goal of the current trial is to provide more affordable ways for users to play, noting that cloud gaming can allow Xbox One owners to access titles designed for the Xbox Series X/S without purchasing new hardware. Engadget noted that the one-hour session limit mirrors the model used by GeForce Now.

The move comes during a period of significant financial transition for the Xbox division. Engadget reports that Xbox leaders recently cited very thin profit margins, leading to a reorganization that includes the cutting of approximately 3,200 jobs, the divestment of studios, and the reported cancellation of certain games. Additionally, The Verge reports that Xbox console prices are scheduled to increase by upwards of $100 starting August 1.

Microsoft has also adjusted its subscription pricing recently. The Verge notes that while Game Pass prices increased, Microsoft added unlimited cloud gaming to the Game Pass Essential tier, priced at $9.99 per month, removing the previous requirement for a Game Pass Ultimate subscription to access cloud features.