It looks like we're getting an ad-supported Xbox Cloud Gaming tier, and it could be official as soon as this week

Early indicators that advertisements are coming to the Xbox Cloud Gaming service have been spotted by users, with messages stating that "ad-supported playtime" popping up for users when launching games.

One such user, The Verge's Tom Warren, posted their own experience seeing this message firsthand. Ad-supported Xbox Cloud Gaming has not been confirmed by Microsoft as of writing, nor its scope across the service. However, last year an Xbox official confirmed that the company would be experimenting with free ad-supported cloud gaming.

This hint at advertisement rollout across Xbox Cloud Gaming comes at an interesting time too, with an Xbox Showcase set to take place on the 22nd January. While it's been stated that the show will focus primarily on a handful of games including Fable and Forza, rumours have been circulating that such a shift with the company's cloud gaming service could be rolled out this year.

It's also coming at an interesting time for cloud gaming in general. With the AI boom ongoing, hardware prices have skyrocketed for consumers. This will, or perhaps already has, curbed the ability of gaming enthusiasts to buy their own machines, potentially leading a new wave to Cloud Gaming services such as what Xbox is offering. While not especially great news for the consumer, there's no doubt that Microsoft has positioned itself into a leading position as far as cloud gaming is concerned.

Microsoft too has faced heavy criticism when it comes to its gaming output, laying off significant portions of its workforce last year and cancelling several projects as a result. 2025 was also the worst year on record for Xbox console sales in the UK, though competitors like the PS5 also saw a drop during the same period.