Ever since it first went live, Microsoft’s xCloud game streaming service has slowly but surely been expanded outwards with support for additional games, platforms and other ways to access the service. Following a recent pop-up which seems to suggest that Microsoft is working on an ad-supported tier for the service, insiders have now offered additional context.

2025 was a pretty big year for xCloud rumours, with Microsoft reportedly developing “next generation” Xbox cloud servers with a focus on “lower lag, improved bitrates, and higher resolution options” – alongside later leaks which claimed that the service would receive an overhaul in the future with 4 tiers in total.

Though Microsoft themselves have yet to unveil this overhaul, it seems the announcement might be imminent, with some Xbox Cloud Gaming users (as reported by Windows Central) noticing a pop-up with the message “1 hour of ad supported play time per session.”

According to known Xbox insider Jez Corden, Microsoft is indeed working on an ad-supported tier of sorts for xCloud, with the leaker stating: “seeking clarification about this message, it was confirmed to me that the ads will appear separately on Xbox Cloud Gaming, for those who have purchased Xbox games digitally, but don't have Xbox Game Pass.”

Outside of this however, it appears as though there may also be a session-based version of xCloud which this premature message was hinting at, with Corden adding: “Microsoft has hundreds of games available to buy via Xbox Cloud Gaming, but as of writing, you need at least one tier of Xbox Game Pass to access them. This session-based ad-supported access tier will change that.”

Given the timing of this message, it is highly likely that we will hear more officially on Microsoft’s xCloud plans during the upcoming Xbox Developer Direct showcase – which is set to go live on the 22nd of January. The console maker did state previously that the showcase will focus on 3 titles in particular, but Microsoft does typically like to throw in something about xCloud / Game Pass, and so it’s possible we will learn more officially then.

KitGuru says: Have you used xCloud at all? How does it compare to other game streaming services? Let us know down below.

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