Microsoft is reportedly preparing to shake up cloud gaming again — this time with a free, ad-supported version of Xbox Cloud Gaming.
A New Era for Xbox’s Gaming Strategy
Microsoft’s gaming division is evolving faster than ever. After major layoffs, price increases for consoles and accessories, and a sharp hike in the Xbox Game Pass subscription, the company seems ready for another bold move.
Recently, Xbox titles have even started arriving on rival platforms such as PlayStation and Nintendo — proof that Microsoft’s vision of gaming is becoming increasingly platform-agnostic.
If you’re reading this, you’re reading this on an Xbox.
There’s more ways to game on Xbox than ever before: https://t.co/s1cW2DhlSU pic.twitter.com/U7fGGQlnXB — Xbox (@Xbox) September 25, 2025
Free Cloud Gaming with Ads on the Horizon
According to The Verge, Microsoft is developing a new version of Xbox Cloud Gaming that would be completely free for players — the catch? Advertising. This model would allow users to stream a limited selection of Xbox titles on nearly any device, from smart TVs to mobile phones, without paying a cent.
Players could also access some of the digital games they already own through the cloud. Even the “Free Play Days” titles — usually premium games available temporarily for free — are expected to be included in this plan, offering more ways to try and discover Xbox games.
Microsoft is about to launch free Xbox Cloud Gaming with ads https://t.co/ZT48xgGOaD
— The Verge (@verge) October 3, 2025
Advertising as the Price of Play
The free tier wouldn’t be entirely without cost — players would need to watch several minutes of targeted ads before jumping into their session, similar to YouTube or Twitch pre-rolls.
Microsoft’s goal is clear: grow the Xbox Cloud Gaming user base after many players canceled their Game Pass subscriptions due to rising prices. This strategy could also attract casual gamers who aren’t ready to commit to a paid plan but are open to watching ads in exchange for free access.
Not Microsoft’s First Experiment
This isn’t the first time Microsoft has tested the waters with free cloud gaming. Since 2022, Fortnite has been available for free via Xbox Cloud Gaming, serving as a proof of concept for the ad-supported model.
If this new version succeeds, it could redefine how players access games — moving away from ownership toward accessibility and engagement. As well as compete against the likes of Nvidia GeForce Now and Amazon Luna. Would you play free Xbox games if it meant watching ads first? Share your thoughts in the comments below.
Download the Allkeyshop Browser Extension Free
For all the latest video game news, trailers, and best deals, make sure to bookmark us.
You can find all the best and cheapest online deals on CD keys, game codes, gift cards, and antivirus software from the verified CD key sellers on our store pages.
To not miss any news on Allkeyshop, subscribe on
Google News
.