Microsoft is preparing to launch a free version of Xbox Cloud Gaming with ads

Microsoft has begun internal testing of an ad-based version of Xbox Cloud Gaming, The Verge reports. According to sources familiar with the company's plans, employees have already received access to the service, which allows you to run select games for free and without a Game Pass subscription.

In the current version, users can stream games they own, titles from the Free Play Days program, as well as a selection of Xbox Retro Classics.

There is approximately two minutes of advertising before each session begins. There are also limitations of up to one hour of play per session and up to five hours of free use per month. These settings may change after the official launch.

The service will support PC, Xbox consoles, mobile devices, and web browsers. Microsoft is reportedly planning to open a public beta of the service in the coming months, followed by a full release.

The launch of the ad-supported version comes amid changes to Game Pass subscriptions. This week, the company expanded access to Xbox Cloud Gaming for Premium and Essential plans, and increased the price of Ultimate by 50%.

Ultimate users can now stream select games in 1440p at up to 30Mbps and 1080p at up to 20Mbps for other games. Premium and Essential plans are limited to 1080p at 12Mbps.

Company representatives note that the free Xbox Cloud Gaming model with advertising will make cloud gaming more accessible in new regions and to a wider audience.