Microsoft Hints at More Affordable Xbox Cloud Gaming, Invests in Next-Gen AI and Gaming Tech

Microsoft hints at "more affordable" Xbox Cloud Gaming plan

Two years ago we learned, thanks to the FTC, that Microsoft was working on a separate "dedicated" version of Xbox Cloud Gaming. Microsoft Gaming CFO Tim Stuart then hinted, a few months later, that there could be a free version Xbox Cloud Gaming in exchange for ads. Now, Microsoft is hinting at making Xbox Cloud Gaming "more affordable" again. Jason Ronald, Microsoft's VP of Next Generation, has appeared on the company's official Xbox podcast today, to discuss Xbox Cloud Gaming, Xbox Play Anywhere, and Microsoft's next-gen chip partnership with AMD. At the moment Xbox Cloud Gaming is only part of Xbox Game Pass Ultimate, meaning you have to pay $19.99 a month to get access to xCloud. "One of the things we see is there's a lot of players who use Game Pass Ultimate to access the cloud, whether that's the primary way they play, or an additional way to play on the go," says Ronald. "I think for us, it really opens up the opportunity to make it much more affordable, and make it more accessible to players. Whether that's going into new regions, or new ways to actually access the [Xbox] cloud." Microsoft's hints of a more affordable version of Xbox Cloud Gaming come just hours before Nvidia has some "major" GeForce Now news. Nvidia's cloud gaming service is far superior to Xbox Cloud Gaming, thanks to PC-powered performance, better bitrates, higher resolution gameplay, and lower latency. Microsoft has even integrated GeForce Now into its own Xbox game pages. Ronald stops short of announcing a new Xbox Cloud Gaming tier, but it's clear that's been Microsoft's thinking for a few years now. Microsoft started expanding Xbox Cloud Gaming beyond just the Game Pass library last year, with the ability to stream games you own as long as you're an Ultimate subscriber. There's an opportunity to bring that Ultimate paywall down, especially for mobile streaming. Microsoft had planned to sell games directly in its Xbox app for Android and allow customers to immediately stream those games directly to their phones and tablets, but a legal battle has put those plans on hold. Microsoft is currently preparing the next generation of Xbox Cloud Gaming, alongside its next-gen Xbox console work. "Together with AMD, we're designing dedicated silicon and hardware to enable the next generation of gaming experiences," says Ronald. "We're investing deeply in the next generation of rendering technologies, such as neural rendering, which will bring a new level of quality to the games that you're having." That next generation of Xbox hardware will likely see Xbox and Windows move even closer together, alongside the choice of different stores for Xbox owners. It's also an opportunity for Microsoft to bring more AI-powered features to the next Xbox. "We're also investing in dedicated silicon to enable the next generation of AI capabilities, that will be transformative in how you actually experience your gameplay," says Ronald. Microsoft will "start experimenting" with some of these AI-powered features on the upcoming Xbox Ally X device, because it has a dedicated NPU chip just like Microsoft's Copilot Plus PCs.

Microsoft considers cheaper Xbox Cloud Gaming tier

Microsoft is considering a more affordable version of Xbox Cloud Gaming, according to recent discussions by company executives. Jason Ronald, Microsoft's VP of Next Generation, addressed the potential shift during an Xbox podcast, alongside discussions regarding Xbox Play Anywhere and the company's ongoing chip partnership with AMD. The possibility of a more accessible cloud gaming service from Microsoft emerged after a period of internal exploration. Two years prior, documents revealed through the FTC indicated Microsoft's development of a separate, dedicated version of Xbox Cloud Gaming. Microsoft Gaming CFO Tim Stuart later suggested the possibility of a free, ad-supported model for the service a few months following the FTC disclosure. Ronald highlighted the existing usage patterns of Xbox Cloud Gaming within the Xbox Game Pass Ultimate ecosystem. He noted, "One of the things we see is there's a lot of players who use Game Pass Ultimate to access the cloud, whether that's the primary way they play, or an additional way to play on the go." This observation seemingly informs the company's strategy regarding accessibility and pricing. The current structure of Xbox Cloud Gaming requires a subscription to Xbox Game Pass Ultimate, which costs $19.99 per month. Ronald's statements suggest a potential decoupling of cloud gaming from this premium tier. He stated, "I think for us, it really opens up the opportunity to make it much more affordable, and make it more accessible to players. Whether that's going into new regions, or new ways to actually access the [Xbox] cloud." This signals potential adjustments to pricing models and geographic availability. The discussion of Xbox Cloud Gaming's future coincides with developments from competitors in the cloud gaming space. Notably, Nvidia's GeForce Now service offers PC-powered performance, enhanced bitrates, higher resolution gameplay, and reduced latency. Microsoft has even integrated GeForce Now into its Xbox game pages, acknowledging its capabilities. While Ronald refrained from announcing a specific new tier for Xbox Cloud Gaming, he acknowledged that this concept has been under consideration for several years. Microsoft expanded Xbox Cloud Gaming beyond the Game Pass library last year, enabling Ultimate subscribers to stream games they already own. Microsoft had also intended to allow direct game purchases within its Xbox app for Android devices, enabling immediate streaming to phones and tablets. These plans have been temporarily suspended due to a legal dispute. Overcoming this hurdle could further facilitate affordable mobile streaming options. Beyond immediate accessibility, Microsoft is also investing in the next generation of Xbox Cloud Gaming technology, aligning it with the development of its next-generation Xbox console. Ronald stated, "Together with AMD, we're designing dedicated silicon and hardware to enable the next generation of gaming experiences." The partnership with AMD extends to the development of advanced rendering technologies. Ronald explained, "We're investing deeply in the next generation of rendering technologies, such as neural rendering, which will bring a new level of quality to the games that you're having." These advancements are intended to elevate the visual fidelity and overall gaming experience. The forthcoming generation of Xbox hardware is expected to feature a closer integration between Xbox and Windows, offering Xbox owners a choice of different storefronts. This convergence also presents an opportunity to incorporate more AI-driven features into the Xbox ecosystem. Ronald said, "We're also investing in dedicated silicon to enable the next generation of AI capabilities, that will be transformative in how you actually experience your gameplay." Microsoft plans to experiment with AI-powered features on devices like the upcoming Xbox Ally X, leveraging its dedicated NPU chip.

Xbox Cloud Gaming could soon be more affordable, hints Microsoft

The tech giant is also investing in dedicated silicon to enable the next generation of AI capabilities. Microsoft is once again hinted at making its cloud gaming service more affordable for players. Right now, Xbox Cloud Gaming is only available through Xbox Game Pass Ultimate, which costs $19.99 per month. But recent statements from Jason Ronald, Microsoft's VP of Next Generation, suggest that the company is looking at cheaper and more accessible ways to offer the service. "One of the things we see is there's a lot of players who use Game Pass Ultimate to access the cloud, whether that's the primary way they play, or an additional way to play on the go," Ronald said on the official Xbox podcast. "I think for us, it really opens up the opportunity to make it much more affordable, and make it more accessible to players. Whether that's going into new regions, or new ways to actually access the [Xbox] cloud." Also read: Google Pixel 9 Pro XL price drops by Rs 30,000 on Flipkart: How this deal works Currently, cloud streaming on Xbox allows subscribers to play not only the Game Pass library but also stream games they already own if they're an Ultimate member. According to The Verge, a cheaper tier would make sense, especially for mobile players who don't want to pay the full subscription fee. Also read: GTA 6 release date, price in India, characters, gameplay, map and other details At the same time, Microsoft is working on the future of Xbox Cloud Gaming alongside its next-generation consoles. Ronald revealed that Microsoft is teaming up with AMD to design "dedicated silicon and hardware to enable the next generation of gaming experiences." "We're also investing in dedicated silicon to enable the next generation of AI capabilities, that will be transformative in how you actually experience your gameplay," Ronald explained. Some of these AI tools will first appear on the upcoming Xbox Ally X device.