Xbox Cloud Gaming could soon go free with ads
20 Jan 2026

Xbox Cloud Gaming, the popular cloud-based gaming service from Microsoft, is rumored to be gearing up for a major expansion.

The speculation comes after users noticed references to "ad support" while launching games on the platform.

This development aligns with earlier reports that suggested Microsoft was exploring the introduction of ads into Xbox Cloud Gaming.

Ad-supported access: A new tier for Xbox Cloud Gaming
Service expansion

The new "ad supported" message that users are seeing hints at a session-based ad-supported access tier for Xbox Cloud Gaming.

This would allow players who have purchased Xbox games digitally but don't subscribe to Xbox Game Pass, to play these games.

Currently, hundreds of games are available for purchase via Xbox Cloud Gaming, but a subscription to at least one tier of Xbox Game Pass is required to play them.

Xbox Cloud Gaming's growth amid economic challenges
Market resilience

Despite the economic challenges that have hit traditional gaming platforms, Xbox Cloud Gaming has continued to grow.

The service has seen double-digit growth for Microsoft, especially in regions where tariffs and taxes make buying traditional gaming hardware too expensive.

Last year, Microsoft expanded Xbox Cloud Gaming to India and is looking at other Asian and African countries for future expansion.

Xbox Cloud Gaming's future amid AI and cloud dominance
Strategic positioning

As the demand for AI drives up prices of components used in local gaming hardware, services like Xbox Cloud Gaming are seen as a potential solution for those priced out of local hardware.

However, these services aren't immune to price increases either. The cost of running cloud gaming is high due to the same components used in local gaming hardware.