Microsoft was working on a separate dedicated version of Xbox Cloud Gaming

Illustration of Xbox games on a TV
Image: Microsoft

Microsoft was working on a separate version of Xbox Cloud Gaming (xCloud) that wouldn’t have been tied to its premium Xbox Game Pass Ultimate subscription. During the FTC v. Microsoft hearing today, the FTC’s counsel revealed that Microsoft had been working on a “dedicated xCloud SKU” last year.

“Xbox would very much like to do it,” said Sarah Bond, head of Xbox creator experience, in September 2022 — the same month Google announced its Stadia shutdown. Microsoft has now strangely changed its mind amid regulatory concerns over cloud gaming. So what’s changed since September 2022?

“We’ve continued to get more data about the success and the popularity of xCloud. We’ve gotten more clear on the costs related to it, and we have signed...

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