Cloud Gaming Up 45% on Xbox Game Pass Amid DRAM Price Crisis Due to AI Boom

Many expected Xbox Game Pass to see a drop in usage after its price increased. However, it’s actually seen a significant boost – a 45% rise in gaming hours – driven by the popularity of cloud gaming.

Microsoft recently announced that Xbox cloud gaming through Game Pass has increased by 45% since last year. Players are also using cloud streaming more – they’re spending 45% more time streaming on their Xbox consoles and 24% more time on other devices like phones and tablets.

The recent big price increase has drawn all the attention, making people overlook the fact that Xbox Cloud Gaming is now available with cheaper subscription plans.

For new users, this represents a price cut since cloud gaming used to be limited to our most expensive plan. Now that it’s available on more affordable tiers, it’s no surprise that more people are using it.

Xbox Cloud Gaming is now available in India, a country with over 500 million gamers. This expands the service’s reach to 29 countries worldwide.

Cloud gaming is becoming more popular, partly because it’s now available in Central and South America, as well as recently launching in India.

India is currently the seventh-largest country in the world when it comes to how much money people spend on gaming. Importantly, most gamers there use mobile phones and PCs rather than consoles.

Microsoft reported strong growth in Argentina and Brazil, with playtime and the number of active players both increasing significantly – by more than 10%.

Why Xbox Cloud Gaming is Gaining Popularity

Recent, significant increases in the cost of DRAM memory could make cloud gaming a more attractive option for gamers facing high prices for gaming computers and consoles. Even Microsoft’s Xbox Series X and S consoles have become much more expensive.

Recent price hikes are likely due to the surge in artificial intelligence. Companies like Google and OpenAI are buying up most of the available DRAM memory, and there aren’t many manufacturers to begin with, creating a shortage.

This situation actually worsened things for gamers, largely because modern games demand increasingly powerful computers and graphics cards.

Xbox Cloud Gaming also relies on DRAM, but when it’s not needed for games – or during quieter periods – Microsoft uses that processing power for AI tasks. This helps them maximize profits beyond just what they earn from gaming.

Microsoft is also playing a role in the rising cost of DRAM, even as they propose a fix with more affordable cloud gaming options like Xbox Game Pass.

Right now, we’re just hoping the current excitement around AI will die down, which might help bring the prices of computer hardware like DRAM back to reasonable levels.

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2025-11-27 02:36