Xbox Cloud Gaming Is Going Free… but You’ll Rage-Quit Fast — and Not Just Because of the Ads

Free — but there’s a catch.
Published 4 October, 2025

As players are still reeling from the Game Pass overhaul and its sudden 50% price hike announced late last week, Microsoft seems to be trying to calm the storm by opening up the cloud to everyone—for free. But, as is often the case with Xbox, generosity comes at a price.

Xbox Cloud Gaming has long stood out as one of the key perks of the Game Pass Ultimate. This technology allows players to enjoy titles on devices that would normally be far too weak to run them—smartphones, tablets, smart TVs, or even entry-level PCs. Recently, Microsoft extended this feature to the new Premium and Essential tiers of its Game Pass, but it now seems that was only the beginning of a much broader strategy.

Free Xbox cloud gaming

Image credit: Microsoft

A free cloud, but not without storms

According to information revealed by Tom Warren of The Verge, Microsoft is currently testing a fully free version of Xbox Cloud Gaming among its employees. This new iteration of the service won’t include access to the vast Game Pass catalog, but it will still offer some interesting options:

Of course, free comes with a catch: advertising. The internal tests currently include around two minutes of ads before each gaming session. It’s a short pre-roll format, similar to what you might see on certain video streaming platforms.

Restrictions that could dampen excitement

While ads are an expected trade-off for a free service, the time restrictions could prove much more frustrating. According to Tom Warren’s sources, Microsoft is currently considering several limitation models:

These limits, still subject to change before the official launch, would turn the service into a backup option rather than a true gaming platform. Perfect for squeezing in a quick session during a commute or testing a title during a promo weekend—but clearly insufficient for those looking to dive into long-form adventures.

As for technical performance, no details have surfaced regarding resolution, bitrate, or latency for this free version. It’s likely, however, that it will not exceed 1080p resolution and 12 Mbps—the same specs currently offered to Premium and Essential subscribers, and well below the 1440p at 30 Mbps reserved for Ultimate members.

A volatile context after the Game Pass price hike

On paper, a free Cloud Gaming option makes sense. It would allow Microsoft to dramatically expand its audience and introduce its streaming technology to players still hesitant about subscribing. The company had actually hinted at this move nearly two years ago, through Tim Stuart, Microsoft Gaming’s Chief Financial Officer.

However, the timing couldn’t be worse for the Xbox brand. The recent Game Pass Ultimate price explosion—which jumped from €20 to €30 per month (a staggering 50% increase)—triggered a massive wave of cancellations and a storm of backlash across social media.

At the same time, Xbox’s game library is slowly losing its appeal with the gradual end of exclusives: Doom: The Dark Ages, Hellblade 2, and Gears of War E-Day have all recently arrived on PlayStation 5, and >Starfield is expected to follow soon.

While Microsoft is undeniably paving its way in the world of digital and streaming-based gaming, this relentless push forward comes at the cost of strategic choices that alienate loyal players and erode the trust they once had in the Xbox ecosystem. The launch of this free Cloud Gaming service—expected to enter public testing in the coming weeks—could mark one of the most pivotal moments of the Xbox era: a bold attempt at redemption… or a sign of lost direction. One thing’s for sure: in this digital fog, Microsoft’s real challenge won’t be getting more people to play, but making them want to believe again.

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Editor-in-Chief
Alexandre Kor fell in love with video games playing the original Mario Bros on NES—and that passion never left. As Editor-in-Chief, he ensures the site’s editorial quality, offering all readers an enriching and enjoyable experience.

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