Cloud Gaming is Xbox's 'fastest growing' platform - and new devices are on the way

On a recent episode of the Xbox Podcast, Microsoft shared some of its plans regarding Copilot AI and the expansion of the Play Anywhere initiative. However, they also shed light on the fast-moving growth of cloud gaming in the Xbox ecosystem.

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Credit: Microsoft

Microsoft's Vice President of Xbox Gaming devices and Ecosystem, Jason Ronald, highlighted that cloud gaming continues to grow exponentially.

"It's the fastest-growing part of how people choose to play with Xbox,"

He noted that for many players, cloud gaming could be the "first and the only way" they experience gaming on an Xbox. Given the industry's shift toward portability in 2025, it's understandable that greater accessibility means more players.

Microsoft first launched its cloud gaming services in 2020 as part of Xbox Game Pass Ultimate, allowing players to stream a catalog of 150 titles via mobile devices. By 2021, Xbox Cloud Gaming expanded to Windows 10 devices and Xbox consoles. In 2024, Xbox began its full marketing push around "Anything is an Xbox," a strategy that hinges heavily on cloud gaming.

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Credit: Microsoft

Ronald elaborated on the types of audiences the service is reaching - for example, players who game through direct integration with a smart TV or those using laptops that aren't powerful enough to run games natively. While traditional gamers still prefer physical hardware, the 'Play Anywhere' strategy appears to be a key factor in user acquisition.

"Again, it's just really about providing more opportunities for people to play," Ronald said.

Xbox Cloud Gaming is currently available across nearly every type of device, from consoles to phones and TVs. Following an announcement at CES 2025 in January, Microsoft will also be bringing cloud gaming to LG TVs, joining an ecosystem that includes Samsung and Amazon Fire TV products.

While shifting away from traditional hardware is a bold strategy, Microsoft's bet on cloud gaming just might pay off.

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