What we know so far: Microsoft confirmed late last year that it is internally testing a free, ad-supported tier for its cloud gaming service. Recent leaks indicate that testing is moving quickly toward a new phase, with a public launch potentially planned within the next few weeks.

Sources recently told The Verge that Xbox Insiders will soon be able to test a free, ad-supported tier of Microsoft's cloud gaming service. While Microsoft previously confirmed plans for ad-supported cloud gaming, concrete details remain limited.
The only other official sign from Microsoft is a new loading screen in the Xbox app, which informs users that they can play one-hour sessions with ads. This aligns with reports from October, which suggested that Microsoft would allow five free hours per month, though specifics are likely subject to change.

Following the report, Microsoft confirmed to The New York Times that it is testing ad-supported cloud gaming but provided no further details. According to rumors, non-subscribing users must watch two minutes of ads before starting a session and will have access to a limited game selection. The sample is expected to include retro titles, games available through Free Play Days, and some titles already registered to users' Xbox accounts.
By comparison, GeForce Now's free tier allows one-hour sessions and displays ads in the access queue. Users can stream games they already own from thousands of options across Xbox, Steam, and other major PC gaming storefronts. Google's Stadia, which also offered a free tier, shut down three years ago last week – around the same time Microsoft began proposing ads for Xbox Cloud Gaming.
Microsoft may publicly unveil its free tier during its next Developer_Direct presentation, which begins on Thursday, January 22, at 1 p.m. ET. The stream is expected to provide new information on Forza Horizon 6, the new Fable game, and other upcoming Microsoft titles.
The potential expansion of cloud gaming could signal another pivot away from the traditional console-exclusive business model.
Xbox console sales have declined sharply over multiple consecutive quarters as Microsoft shifts toward a hardware-agnostic approach. New games from traditionally Xbox-only franchises, such as Forza Horizon 6 and Halo: Campaign Evolved, are set to launch simultaneously on PlayStation 5 and Xbox Series consoles this year. Although Microsoft is developing a successor to the Xbox Series consoles, it is expected to function as a hybrid between PC and console.
Free Xbox Cloud Gaming with ads could arrive in the coming weeks
