Tech giant Microsoft (MSFT) is working on a free version of Xbox Cloud Gaming that would be supported by ads, according to The Verge. The company has already begun testing this version internally by giving employees the ability to play select games without needing a Game Pass subscription. The free tier would let users stream games they already own, try out weekend-only Free Play Days titles, and access classic Xbox Retro games. Although Microsoft hasn’t officially commented, these early tests suggest a public rollout could be on the way.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
During internal tests, users must watch about two minutes of ads before streaming a game. Each session is currently limited to one hour, with a maximum of five hours of free gameplay per month, although these limits could change when the service officially launches. The ad-supported version will be available on various platforms, including PCs, Xbox consoles, handheld devices, and web browsers. Interestingly, this testing comes just as Microsoft reorganized its Game Pass plans.
In fact, Xbox Cloud Gaming is now included in both the Premium and Essential tiers for the first time, while the Ultimate plan saw a 50% price hike. Notably, the idea of a free version has been around for a while, as Microsoft Gaming CFO Tim Stuart first brought it up about two years ago. With Xbox Cloud Gaming officially out of beta, Game Pass Ultimate members can now stream games in 1440p resolution with up to 30Mbps speed, while Premium and Essential users are limited to 1080p and 12Mbps.
Is MSFT Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 33 Buys and one Hold assigned in the last three months. In addition, the average MSFT price target of $627.95 per share implies 21.4% upside potential.
