Microsoft is testing free, ad-supported cloud gaming for Xbox Insiders

Xbox Insiders can stream games from their libraries for free in ad-supported streaming sessions starting today. The free streaming sessions are limited to games you already own, and sessions are capped at one hour. However, ads will only play “before sessions begin.” It’s also optional — you won’t need to watch ads if you have a paid cloud gaming subscription.

Microsoft says the ad-supported streaming option will only be available for a limited time during a “test period.” It previously began internally testing an ad-supported version of Xbox Cloud Gaming late last year, with sources telling The Verge at the time that the test included about two minutes of preroll ads before streaming sessions.

Around the same time, Microsoft also increased Game Pass prices, but added unlimited cloud gaming to its lowest-priced Game Pass Essential subscription, which costs $9.99 per month. Previously, you needed a Game Pass Ultimate subscription for Xbox Cloud Gaming. Microsoft says the goal of its current test for ad-supported streaming is to further expand affordable ways to play Xbox games. Ad tiers have become increasingly common on video streaming platforms over recent years — the addition of ads on Xbox’s streaming service could signal a similar shift coming to gaming subscriptions.

Additionally, Microsoft notes that cloud gaming could “help Xbox One owners play newer games built for Xbox Series X/S” without needing to buy a new console. The news comes as Xbox is in a state of upheaval, including mass layoffs, studio closures, and a pivot back toward the fan-favorite Fallout franchise. On top of that, Xbox console prices are set to increase by upwards of $100 starting on August 1st.