Users of Xbox Cloud Gaming have reported seeing notifications about ad-supported playtime, hinting at a new free tier from Microsoft. This comes amid rumors of an official launch soon, possibly tied to the upcoming Xbox Showcase. The development aligns with earlier comments from Xbox officials on experimenting with ad-based cloud gaming.
Reports indicate that Microsoft is preparing to introduce an ad-supported option for its Xbox Cloud Gaming service. Users have encountered prompts mentioning “ad-supported playtime” upon launching games, though the company has not yet issued an official confirmation. This move follows statements from Xbox executives about testing free, ad-funded cloud gaming models.
The timing aligns with the Xbox Showcase scheduled for January 22, which is anticipated to highlight upcoming titles such as Fable and Forza, alongside potential updates on service expansions. Tech journalist Tom Warren from The Verge has noted these user reports, suggesting Microsoft is gradually integrating ads to broaden access.
Such a tier could lower barriers for gamers facing rising hardware costs, especially as cloud gaming evolves with AI advancements. However, it raises concerns over interruptions to immersion, offering free or cheaper play at the expense of ad exposure during sessions.
Microsoft's gaming division has navigated challenges recently, including layoffs and project cancellations in 2025, alongside the lowest UK Xbox console sales that year. This ad-supported approach may help stabilize and grow the user base in a competitive market.