Microsoft Introduces Free Xbox Cloud Gaming Following 50% Game Pass Price Hike
Microsoft has overhauled Xbox Game Pass, split it into different tiers, and raised prices. In the U.S., Ultimate jumped 50% to $29.99/month; Premium is $14.99; Essential stays $9.99. These changes began October 1, 2025 for new members and are rolling to most existing members in early November.
To ease the hit, Microsoft packed in more value at the top tier: 75+ day-one releases/year, Ubisoft+ Classics and Fortnite Crew perks, and higher-quality cloud streaming (up to 1440p) for Ultimate. All tiers now include cloud gaming, with Premium/Essential capped at 1080p.
Not everyone is paying more yet. In countries like Germany, Ireland, South Korea, Poland, and India, existing Ultimate subscribers on auto-renew will keep their current price for now and get 60 days’ notice before any change. This pause does not apply in the U.S. or U.K.
Microsoft is also testing a free, ad-supported version of Xbox Cloud Gaming with short pre-roll ads, one-hour session limits, and a monthly cap (internal test now; public beta planned). It would let players stream select owned titles, Free Play Days picks, and Xbox Retro Classics without a subscription.
Player reaction is mixed: some are canceling over the higher annual cost, while others say Ultimate still saves money if you play many day-one releases.
What changed in Game Pass and is it worth it?
Microsoft renamed its plans to Essential (was Core), Premium (was Standard), and Ultimate and expanded the libraries, cloud features, and perks to help justify the higher price.
- Essential — $9.99/mo.
50+ curated games on console and PC, online multiplayer, in-game perks, and unlimited cloud gaming at 1080p. No day-one Xbox-published titles. - Premium — $14.99/mo.
~200+ games across console, PC, and cloud, plus Xbox-published games within a year (Call of Duty excluded). Cloud gaming at 1080p. Added Rewards earn-backs. - Ultimate — $29.99/mo. (up 50%)
75+ day-one releases/year, Ubisoft+ Classics, EA Play, Fortnite Crew (from Nov 18), bigger Rewards, and the best cloud experience: up to 1440p streaming with faster queues. Library spans console, PC, and cloud.
The new pricing began on October 1, 2025 for new members and starts hitting most existing members in early November. Microsoft says the increase reflects a bigger catalog, new partner benefits, and upgrades to cloud streaming.
What does that look like in practice? Ultimate is the showcase tier. It folds in 75+ day-one releases each year, Ubisoft+ Classics, EA Play, and Fortnite Crew starting November 18, plus a beefed-up Rewards program and cloud streaming up to 1440p with faster queues. Premium aims for flexibility at $14.99, with 200+ games across console, PC, and cloud, and Xbox-published titles arriving within a year of launch (Call of Duty excluded). Essential holds the entry point at $9.99, offering 50+ curated games on console and PC, online multiplayer, in-game benefits, and unlimited 1080p cloud play.
There’s also a regional differences. In Germany, Ireland, South Korea, Poland, and India, many existing Ultimate subscribers on auto-renew are keeping their current price for now. Microsoft says those customers will get at least 60 days’ notice before any change; this pause does not apply in the U.S. or U.K. In some countries, like Brazil, the price hike increased by 99%.
Value comes down to habits. If you chase day-one releases or already pay for Fortnite Crew, Ultimate can still pencil out. If you don’t need day-one access, Premium covers a lot for less. If you only dip into a few hits and play online, Essential gets you in the door with cloud included.
A free cloud carrot after an unpopular price hike
The price jump has not gone down well. Many players say $29.99 per month for Ultimate is a step too far, and some have canceled or stacked older deals to avoid paying more. Was the new free, ad-supported Xbox Cloud Gaming meant to calm things down? Maybe, maybe not. It is happening, so here is what it looks like.
How the free tier works (in testing): Microsoft is piloting an ad-supported option that lets you stream select games without a Game Pass subscription. Internal tests use about two minutes of preroll ads, one-hour session caps, and up to five free hours per month. It is planned for PC, Xbox consoles, handhelds, and the web, with a public beta before full launch. Eligible content should include some games you own, Free Play Days picks, and a slice of Xbox Retro Classics. These specifics could shift at launch, but that is the current shape.
Quality and tiers: Cloud officially left beta; Ultimate streams up to 1440p with higher bitrates and shorter queues, while Premium and Essential include unlimited 1080p cloud. The free tier is a sampler, so expect stricter limits and ads rather than premium quality.
Why it matters: A no-cost, try-before-you-pay funnel could bring lapsed and curious players back in, especially on low-spec PCs or mobile. For heavy users who care about day-one releases, Fortnite Crew, Ubisoft+ Classics, and higher-resolution streaming, the value decision still lives at Ultimate, now at a higher price.
Will the higher price stick or will players switch?
The short answer is that Microsoft will try to hold the line, while testing ways to keep people engaged. The price increase is already live for new members and will hit most existing members in early November. Some regions have a temporary pause for existing Ultimate subscribers on auto renew, which shows Microsoft can stagger changes when local rules require it.
Early sentiment points to churn risk. Reader polls and comments show many players canceling or downgrading after the jump to 29.99 dollars per month, although a vocal group still finds value when they play multiple day one titles and use the new perks.
Microsoft’s counter is a wider funnel. The free ad supported cloud tier creates a no cost path to sample games. If the beta draws casual players and lapsed subscribers back into the ecosystem, some will likely convert to Premium or Ultimate over time. Cloud quality also improved, with Ultimate streaming up to 1440p. That helps justify the top tier for people who care about convenience and fidelity.
What to watch next
- If cancellations outpace new sign ups, expect more partner perks, limited time discounts, or regional offers to shore up value.
- If the free cloud test gains traction, Microsoft may raise time caps, rotate stronger catalogs, or run sponsored play events to convert free users.
If you play several day one titles each year and want bundled perks, Ultimate can still make sense. If not, Premium covers a lot for less. If you only dabble, the free cloud tier may be enough once it opens to the public.
Acer purchase bonus: 3 months of PC Game Pass
If you buy a new eligible Acer or Predator Windows 11 PC, you can claim three months of PC Game Pass with EA Play included. This is not Xbox Game Pass Ultimate. It is PC Game Pass, which means you will see much of the Game Pass catalog on Windows, but not every console title. Microsoft’s catalog varies by plan, platform, and region, so some Xbox-only games will not appear in the PC library.
Eligible models (examples)
- Predator Helios Neo 16
- Predator Helios 16 / Helios 18
- Predator Triton Neo 16
- Predator Orion X
- Acer Nitro V 16
- Acer Nitro 14 AMD
What you save
PC Game Pass now costs $16.49 per month in the U.S. Three months included with your Acer purchase is worth $49.47 before tax.
How to redeem
On your new PC, open the Xbox app, sign in with your Microsoft account, and follow the on-screen steps to activate the offer. After three months, the plan renews at the then-current rate unless you cancel. Game availability and EA Play benefits change over time and by region.
Final thoughts: is it still worth it?
The new Game Pass prices are high, especially for Ultimate. But Microsoft has added real value with more day-one games, better cloud performance, and new perks like Ubisoft+ Classics and Fortnite Crew. If you play regularly and want the full experience, Ultimate can still be a solid deal.
For most people, Premium offers the best balance. It includes a wide game library, cloud access, and a lower monthly cost. If you only play occasionally, the Essential plan or upcoming free cloud tier might be enough.
You can also try it risk-free. Buy a new Acer or Predator PC and get three months of PC Game Pass at no cost and if you have a valid student email you can enjoy up to 15% off your next purchase from the Acer Store by signing up with Student Beans. With both options you can save more than 50 dollars and explore hundreds of PC games before deciding if a full subscription is right for you.
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Patrick Yu is a Senior Project Manager at Level Interactive and has 8 years of experience writing business, legal, lifestyle, gaming, and technology articles. He is a significant contributor to Acer Corner and is currently based in Taipei, Taiwan.
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