Xbox Cloud Gaming's new hourly cap is reportedly set exactly where Microsoft stops making money on it
Key Points:
- Xbox has implemented monthly cloud gaming time limits for Game Pass subscribers, with Ultimate members capped at 15 hours, as usage beyond this point reportedly becomes unprofitable for Microsoft.
- The caps are linked to increased server memory demands due to Microsoft's AI investments, which prioritize Azure capacity for AI workloads over game streaming.
- These restrictions are part of broader cost-cutting measures at Xbox, including layoffs and project cancellations, as the division faces pressure to improve profitability.
- Average gaming times globally exceed the imposed cloud gaming limits, with US gamers playing about 9.5 hours per week, suggesting the caps may restrict typical user behavior.
- Despite these challenges and scaling back of cloud gaming services, major industry players continue to maintain a positive outlook on the future of cloud gaming.