Microsoft has recently hinted at launching a “more affordable” version of Xbox Cloud Gaming, potentially making game streaming accessible to a wider audience. Currently, Xbox Cloud Gaming is bundled exclusively with Xbox Game Pass Ultimate, which costs $19.99 per month. This premium access model has limited entry for casual gamers who may want to enjoy cloud gaming without the full Ultimate subscription.
Jason Ronald, Microsoft’s Vice President of Next Generation Experiences and Platforms, mentioned on the official Xbox podcast that many players currently use Game Pass Ultimate to stream games on the cloud either as their main gaming method or as a supplement while on the move. A more affordable cloud gaming tier or expanded cloud access could open new markets, particularly in regions where the full Ultimate subscription might be too expensive or inaccessible.
This hint follows earlier reports and filings suggesting Microsoft has been developing a dedicated Xbox Cloud Gaming subscription separate from Game Pass Ultimate. The company previously teased the possibility of an ad-supported free tier to attract casual users as well. Any future tier would be designed to improve accessibility while maintaining quality and usability.
The timing is notable as rival Nvidia prepares to announce major updates for its GeForce Now cloud gaming service, which is widely considered to offer superior cloud gameplay performance, higher resolution streaming, and lower latency due to its PC-powered infrastructure. Microsoft has recently integrated GeForce Now links into Xbox game pages, signaling a recognition of the competitive landscape.
In addition to cloud gaming strategy, Microsoft reaffirmed investment in its next-generation Xbox console and gaming technologies, in partnership with AMD. New dedicated silicon is being developed that will support advanced rendering and neural rendering techniques, promising significant improvements in game graphics and performance.
Microsoft is also focused on integrating next-gen AI capabilities into gaming. The upcoming Xbox Ally X device will feature a dedicated neural processing unit (NPU), similar to Microsoft’s Copilot Plus PCs. This will enable innovative AI-powered gameplay features that could transform how players interact with games, offering smarter non-player characters, dynamic content, and personalized experiences.
With the evolving gaming ecosystem, Microsoft is aligning Xbox and Windows closer and creating more flexible store options for Xbox owners. The expanded cloud gaming tiers, AI-powered features, and revamped hardware point towards a future where gaming is more accessible, immersive, and intelligent.
While no official announcement has been made about the exact details or launch timeline for a standalone Xbox Cloud Gaming subscription, Microsoft’s strategic hints indicate a clear intent to make cloud gaming more affordable and accessible within the next generation of Xbox products.