Microsoft was working on a separate version of Xbox Cloud Gaming (xCloud) that would not be tied to the premium Xbox Game Pass Ultimate subscription. During the FTC v Microsoft In today’s hearing, counsel for the FTC revealed that Microsoft had been working on a “dedicated xCloud SKU” last year.
“Xbox would love to do it,” said Sarah Bond, head of Xbox Creator Experience, in September 2022 – the same month Google announced the closure of Stadia. Microsoft has now oddly changed its mind over regulatory concerns over cloud gaming. So what has changed since September 2022?
“We were getting more and more data about the success and popularity of xCloud. We have gained more clarity on the costs involved and we have formed partnerships with others who provide these services,” says Bond.
This is an important part of the FTC v Microsoft as Microsoft has argued that Xbox Cloud Gaming (xCloud) is simply a feature and not a dedicated market. If Microsoft intended to provide access in a similar way to Google Stadia, that undermines the argument that it’s just a feature. But it is clear that this would never always be just a function.
“We believe there will be 2 billion gamers in the world, and our goal is to reach them all,” was the message from Kareem Choudhry, head of cloud gaming at Microsoft, when the company first started talking about xCloud in 2018 .
