Report: Xbox aiming for standalone Game Pass cloud subscription

Microsoft is aiming for a new cloud-based tier for Xbox Game Pass, sources tell Windows Central's Jez Corden.

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Reports indicate that Microsoft may be considering, working on and/or developing a standalone Xbox Cloud Gaming tier as part of its digital subscription aspirations. Sources have told Windows Central that the trillion-dollar firm could be readying such an offering in its Xbox Game Pass subscription in an effort to reach consumers more broadly. The big selling point would be that users would not have to buy an Xbox console in order to play games--and this could help Microsoft reduce its unprofitable console production cycles.

Leaked documents from the FTC v Microsoft trial show that the company is aiming to considerably grow its Xbox Game Pass subscription base to 110 million subscribers by 2030. Cloud is expected to be a big contributor to this growth with 29% of the sum, or about 32 million subscribers.

That growth would hinge on significant expansion within Xbox Game Pass, as the service has achieved 34 million subscribers as of February 2024.

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There's some roadblocks, however. Microsoft has repeatedly said that xCloud, which was the initial name for Xbox Cloud Gaming, was not a very profitable venture--it's unclear whether or not cloud gaming was even profitable at all. In fact, documents from the FTC v Microsoft trial show that xCloud game streaming generated less than $50 million in revenue in 2021. It is important to remember that the service was coupled with Game Pass Ultimate.

Another potential hurdle is the servers that power the service. Microsoft uses Xbox Series X consoles to power Xbox Cloud Gaming in order to deliver console-quality experiences. xCloud started off as a way to deliver console game experiences to mobile devices, but this gambit ultimately failed to gain momentum.

Now Microsoft has changed tactics, teaming up with NVIDIA's GeForce Now service in a multi-year cloud gaming deal to deliver Xbox games onto NVIDIA's game streaming service.

Plus, Microsoft has also teamed up with Amazon to deliver its games directly to Samsung smart TVs and Amazon Fire TVs via a dedicated Xbox gaming app, and has even facilitated a consumer-ready bundle.

Furthermore, in December 2023, Xbox Chief Financial Officer Tim Stuart made interesting comments that potentially hinted at a free ad-supported option for Xbox Cloud Gaming.

The idea would be that consumers could watch a few ads and get an hour or two of game streaming play time, not unlike NVIDIA's GeForce Now service, which does the same thing.

Microsoft has yet to confirm or announce a standalone Xbox Cloud Gaming subscription.