Microsoft’s Cloud Gaming service, the Xbox Cloud does not seem to be convincing internally and the American giant already has plans to reverse the trend.
What if the Xbox Cloud Gaming service was actually far from successful? In an article by The Verge, journalist Tom Warren explains that Microsoft has admitted that most Xbox Cloud Gaming users use it for try games due to technical limitations. In connection with the acquisition of Activision Blizzard, the FTC (Federal Trade Commission) questioned Microsoft on its activities, and the company argued that cloud gaming is just an add-on for now, and not a market in its own right. But the giant would still have a plan to change the situation.
Microsoft wants to reverse the trend with the Xbox Cloud
During the FTC and Microsoft Hearing since yesterday, the FTC attorney revealed that Microsoft was working/working on a separate version of Xbox Cloud Gaming (xCloud) that would not be tied to its premium subscription Xbox Game Pass Ultimate. Because yes, as a reminder, it has been officially accessible since September 15, 2020 with the Pass Ultimate subscription. Sarah Bond (nothing to do with James) Vice President of Xbox says:
We continued to get more data on the success and popularity of xCloud. We have become clearer about the costs associated with it and we have signed partnerships with other providers of these services.
As Tom Warren reports, this is a key part of the FTC’s hearing against Microsoft, as the latter argued that Xbox Cloud Gaming (xCloud) was just a feature and not a specific market. Microsoft would have to plan to offer similar access to Google Stadia (at least, before it shuts down) for it to become more than just a feature and can undermine this whole pitch.
A better plan for the future
Amid all of this, Microsoft has been eerily quiet about Xbox Cloud Gaming during 2022. The company is remembered as announcing a dedicated Xbox streaming device in 2021 before confirming to make changes. on it in May 2022. This is the famous Keystone project that was then spotted on the shelf of Xbox chief Phil Spencer, in October as we could tell you at the time. In short, Microsoft has a much broader plan for its Xbox Cloud, just to get the service off the ground and revise its ambitions upwards.