Xbox tests free, ad-supported cloud gaming for select Xbox Insiders

'Up to two' minutes' worth of ads in exchange for an hour of gaming

Microsoft is borrowing from the GeForce Now playbook with an ad-supported cloud streaming test.

Microsoft has rolled out a test for its free, ad-supported version of cloud gaming. Select members of the Xbox Insider program can start testing this out today. As announced by Microsoft, ads play before people get into a session. The ads do not interrupt the gameplay experience like they might for ads on a TV or movie streaming platform. Sessions are limited to one hour, at least for now, as part of this early test version that supports games people already own. The test allows people to play games for free, in exchange for watching ads. This is a limited-time test version of free gaming with ads, Microsoft clarified. The program was available internally to Microsoft employees last year, and now it's rolling out to the public for another round of tests. Microsoft said in its announcement that playing games like this, over the cloud, can help with the affordability crisis going on now in games. A new Xbox, after all, is more expensive than ever due to the memory and component issues. With cloud streaming, people who might still be playing on an Xbox One can play the newest games without having to buy any new hardware. They will, however, need to have a strong and reliable internet connection. "Advertising has existed in gaming for decades, from in-game placements to free-to-play models. But it hasn’t always been built with the player in mind. When done well, advertising can help lower the cost of access. It creates another way for players to get into games without an upfront streaming purchase and expands audiences through new ways to play," Microsoft said. Microsoft also outlined how it plans to handle advertising going forward with the following pillars: We start with the player. Ads should create value.  We do not interrupt the flow of gameplay.  We hold ads to the same quality bar as our content.  We’re clear about what’s advertising.  We make sure ads fit what players expect on each platform.  There are hundreds of games playable via Xbox Cloud Gaming currently. However, people currently need to subscribe to Game Pass to stream them. The new ad tier will allow anyone, even if they don’t have a Game Pass membership, to stream select games in exchange for watching ads. An ad-based tier is no surprise, as Xbox’s Tim Stuart first hinted at it some time ago. In August 2025, Xbox boss Jason Ronald teased an evolution of Xbox Cloud Gaming, saying on a podcast that Microsoft was looking for a way to make the service “more affordable” and “accessible,” and adding an ad-based tier could be part of this. In other Xbox news, the company is going through a "reset" of the business currently, and this has included 1,600 layoffs so far and 1,600 more to come. Additionally, Microsoft divested of five studios and canceled some games. In the US, Xbox sales "more than doubled" in June 2026 compared to June 2025.