
As console sales decline, Xbox is exploring new ways to make money. Recent reports suggest they’re planning to introduce advertising into Xbox Cloud Gaming. Players using the service have begun noticing a message stating they’ll receive one hour of playtime per session with ads.
Tom Warren from The Verge has confirmed that a recent notification isn’t related to Xbox Game Pass. Instead, Microsoft is planning a free version of Xbox Cloud Gaming that will be supported by advertisements. Right now, you need a Game Pass subscription to use Xbox Cloud Gaming, so this new option appears to be a way for Microsoft to earn more money from its Xbox business.
Although Microsoft hasn’t officially announced it, ads are appearing in Xbox Cloud Gaming. Last year, the company mentioned they planned to show ads to players who were accessing games through the cloud but didn’t have an Xbox Game Pass subscription, according to Windows Central.
Even though Google’s Stadia didn’t succeed, cloud gaming services like Xbox Cloud Gaming and Nvidia GeForce Now have a good chance of becoming popular again. Recent shortages of computer parts have made gaming hardware harder to get and more expensive. This might lead players to explore cloud gaming as a way to enjoy their favorite games without needing to constantly upgrade their PCs or worry about the rising costs of consoles like the Xbox Series X/S.
Microsoft is expanding its services and user base, likely as a way to prepare for future Xbox consoles. While details are still unconfirmed, a new Xbox is expected, and Xbox president Sarah Bond has stated that more high-end Xbox hardware is on the way.
During an interview discussing the new ROG Xbox Ally X and Xbox Ally handheld PCs, Bond shared thoughts on the future of consoles, suggesting players may no longer prioritize games that are only available on specific systems.
She explained that the most popular games, like Call of Duty, Minecraft, Fortnite, and Roblox, are accessible on many different platforms, and this is what truly builds gaming communities. People want to play together no matter what device their friends are using, and limiting games to a single store or device feels outdated. The ROG Xbox Ally, along with cloud gaming, PCs, and traditional consoles, provides more ways to connect and play with others, wherever they are.
looks like ad-supported Xbox Cloud Gaming is coming soon 👀
— Tom Warren (@tomwarren) January 17, 2026
this is nothing to do with Game Pass
— Tom Warren (@tomwarren) January 17, 2026
no this is free version of Xbox Cloud Gaming that won’t be tied to Game Pass
— Tom Warren (@tomwarren) January 17, 2026
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2026-01-19 15:41