Microsoft wanted to make Xbox’s cloud gaming more like Google Stadia

Ben Schoon | Jun 23 2023 - 8:12 am PT

Microsoft’s efforts with cloud gaming on Xbox Game Pass have bolstered the entire industry, but they’ve also been quite limited. Apparently, though, Microsoft had much grander plans for cloud gaming, they’re just been shelved for the time being.

As The Verge reports, the ongoing FTC hearing over Microsoft’s Activision acquisition has been dropping some interesting tidbits, including that Microsoft was working on a “dedicated xCloud SKU” in 2022. This refers to a dedicated product for cloud gaming, rather than the existing version that’s tied to the Xbox Game Pass Ultimate subscription. In September 2022, Microsoft’s head of Xbox creator experience Sarah Bond directly said that “Xbox would very much like to do it.”

This “dedicated” version of Xbox game streaming likely would have looked more like Google Stadia, which allowed users to stream games they owned rather than simply from a rotating subscription library. This plan also adds more context to the “Keystone” streaming device that Microsoft was working on. Microsoft had also previously announced that it would support streaming games that users already owned, a promise that has gone unfulfilled for nearly a year now.

So, why didn’t it happen?

It actually seems rather clear why Microsoft pulled the plug on these efforts. As regulatory bodies have taken concern with Microsoft’s sway over cloud gaming, the company has doubled down on the idea that it cloud gaming is a “feature” of Game Pass rather than a dedicated service. The Verge points out that Microsoft has been making that argument as a part of the ongoing hearing, and it’s clear they’re reinforcing that.

Microsoft has been eerily quiet about cloud gaming over the past several months after making almost constant announcements prior to that, and has rather turned its attention to signing deals with other cloud gaming providers such as Nvidia’s GeForce Now.