Microsoft is reportedly aiming for a new cloud-based tier for its popular Xbox Game Pass subscription service, according to sources speaking to Windows Central’s Jez Corden. This standalone tier would allow users to access Xbox games solely through cloud streaming, eliminating the need for an Xbox console. This move aligns with Microsoft’s ambition to broaden the reach of Game Pass, potentially reaching a significantly larger audience. The potential benefits of this standalone cloud tier are substantial. It could attract gamers who might not be willing to invest in a console, contributing to Microsoft’s goal of expanding the Game Pass subscriber base to 110 million by 2030. Additionally, it could help mitigate the risks associated with console production, which has been historically unprofitable for Microsoft.
However, the path to a successful standalone cloud tier is not without its obstacles. Microsoft has previously acknowledged that its xCloud service, the initial iteration of Xbox Cloud Gaming, struggled to achieve profitability. Furthermore, the high cost of maintaining the server infrastructure needed to power the service remains a significant challenge. The company relies on Xbox Series X consoles to provide high-quality gaming experiences, adding to the operational costs.
Despite these challenges, Microsoft is exploring various avenues to make cloud gaming more accessible and profitable. It has partnered with NVIDIA’s GeForce Now service to deliver Xbox games via streaming and has also collaborated with Amazon to offer Xbox games on Samsung and Amazon Fire TVs. Additionally, Microsoft’s CFO, Tim Stuart, hinted at the possibility of a free, ad-supported tier for Xbox Cloud Gaming, similar to GeForce Now’s model.
While Microsoft has yet to officially confirm or announce a standalone Xbox Cloud Gaming subscription, the ongoing exploration suggests that the company is committed to expanding its cloud gaming offerings and potentially disrupting the traditional gaming market.
