Xbox Cloud Gaming hours “up 45%” with Game Pass — but it’s not just about gaming

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Xbox Cloud Gaming officially launched this past summer, moving out of its testing phase and becoming a fully released service. This launch included a lot of new updates and improvements.

Xbox Game Pass Ultimate recently saw a significant price jump – a 50% increase that upset many long-time subscribers. This price change unfortunately overshadowed some positive news about Xbox Cloud Gaming, which is now available to more people, even without the Ultimate subscription. For those who primarily use cloud gaming, this actually could mean a lower cost, as it used to be exclusive to the more expensive Ultimate plan. It seems this change has led to a surprisingly large number of people trying out cloud gaming.

As a researcher tracking gaming trends, I’ve been following the growth of Xbox Cloud Gaming closely. Our data shows a significant increase in usage – Game Pass subscribers are streaming games 45% more this year compared to last year. Interestingly, we’re also seeing that even console players are opting for the flexibility of cloud gaming, spending 45% more time streaming on their consoles and 24% more on other devices like phones and tablets.

Microsoft has recently made Xbox Cloud Gaming available in several new countries across Central and South America, and launched it in India for the first time. India is a major gaming market – the seventh largest globally – and most gamers there prefer playing on mobile devices and PCs rather than consoles, which haven’t been widely available until now.

Xbox Cloud Gaming is now available in 29 countries worldwide, with Argentina and Brazil experiencing particularly strong growth in both the number of players and how much time they’re spending gaming. Microsoft recently added support for LG TVs and Amazon Fire TV sticks in these regions, alongside existing support for Samsung TVs.

As an analyst, I’m paying close attention to Microsoft’s focus on Xbox Cloud Gaming. It signals they see real potential in the technology, and it’s interesting to see other companies starting to take notice and ramp up their own efforts in this space.

Why Xbox Cloud? Let’s read between the lines a bit.

The rising cost of DRAM memory is making gaming more expensive, but cloud gaming could offer a solution by letting people play on the hardware they already have. Xbox Series X|S consoles have become pricier, largely due to the surge in demand for components driven by the growth of artificial intelligence. Companies like OpenAI, Microsoft, and Google, supported by government initiatives, are buying up most of the available DRAM from a small number of manufacturers to power their AI technologies – things like image generators and chatbots. This increased demand is driving up prices and impacting other industries, including gaming.

Xbox Cloud Gaming also relies on DRAM, but Microsoft cleverly utilizes it when demand is low, like overnight. Instead of letting the Xbox consoles sit unused, they’re repurposed for AI and other tasks within Azure, essentially maximizing the investment in the hardware. This not only addresses a potential issue with server capacity but also creates new revenue streams for Xbox beyond traditional game sales. While Microsoft may have contributed to the high cost of DRAM, they’re now offering a solution – more affordable access to Xbox Cloud Gaming – which is a pretty smart move.

Linking Xbox and gaming to Microsoft’s current business priorities has surprisingly helped Xbox survive internal doubts. CEO Satya Nadella once seriously considered shutting down Xbox altogether, but now, because of its connection to cloud technology and its broader value, Xbox has sometimes become a bigger revenue source for Microsoft than Windows.

The 45% increase in gaming playtime doesn’t tell the whole story without some context. Xbox Cloud Gaming already had a large user base – Microsoft previously reported ‘tens of millions’ of hours played each month. This growth likely comes from expanding into India, increasing server capacity, and offering more affordable access through Xbox Game Pass Essentials. Plus, Xbox Game Pass Ultimate now provides higher resolution and smoother frame rates in certain games, potentially making cloud gaming a better option than playing directly on older consoles like the Xbox One. Looking ahead, Microsoft plans to launch a free, ad-supported version of Xbox Cloud Gaming in 2026, similar to NVIDIA GeForce Now and other cloud gaming services.

As a gamer, it’s amazing how many options we have now! Microsoft has a huge library of over 2,000 games you can stream, but PlayStation really stepped up and now offers almost 3,000! And NVIDIA GeForce Now still delivers top-notch performance, but Xbox is quickly improving and becoming a serious contender. It’s great to see this competition benefiting us players!

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2025-11-26 22:10