Microsoft announces cap on Xbox Cloud Gaming hours for Game Pass subscribers, admits most aren't using it much anyway
Overview & Key Takeaways
Gotta find revenue wherever you can, I guess.
As Microsoft continues to flail for a remedy to the reputational damage it's incurred as a result of its repeated mass layoffs, bungled industry consolidation strategies, and partnership with Israeli surveillance agencies, its gaming division is returning to a favorite page from its playbook in recent years: Hiking service costs.
Today, Xbox announced that it will implement a monthly cap on Xbox Cloud Gaming hours for Game Pass subscribers. Previously, eligible Game Pass users could use the game streaming service without a time limit; Beginning in November, however, they'll need to purchase additional cloud playtime through the Xbox Store once they expend their allotted cloud gaming hours.
The Cloud Gaming hourly limits will be determined by Game Pass subscription tier:
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- Game Pass Ultimate: 15 hours
- Game Pass Premium: 10 hours
- Game Pass Essential: 5 hours
Xbox acknowledged that the rollout of a monthly time limit on cloud gaming hours is "a meaningful change, particularly for players who regularly spend more time gaming through the cloud." But the company offered an estimate of the policy change's impact that suggests most Game Pass subscribers already aren't using cloud gaming much.
"We expect this upcoming change to impact 4% of Game Pass subscribers," Xbox said.
While it'll be rolling out the monthly cloud gaming cap for Game Pass subscribers, Microsoft will also be opening the service for players without Game Pass in November. Any users will be able to stream eligible games to supported devices after purchasing cloud gaming playtime through the Xbox Store.
Xbox didn't confirm how much cloud playtime will cost, but said it will provide "more information about pricing, purchasing additional hours, eligible games, market availability, and how players can check their remaining time" in November.
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The changes to cloud gaming access, Xbox says, are a cost saving measure.
"We’re introducing this model because the cost of providing cloud gaming grows as more people use it and play for longer," Xbox said. "Moving to monthly limits allows us to keep offering the service while continuing to invest in its reliability and performance. We understand that for some players the practical result is a higher cost."
Evidently, the company doesn't expect the ad-supported game streaming it began testing last month will sufficiently move the needle on that front. And that needle's got a lot of moving to do: In July, Microsoft's annual financial filings confirmed that Xbox revenue had fallen by $1.7 billion over the last year.
Whether "the practical result" of a higher cost on cloud streaming will actually deliver needed revenue gains for Xbox, however, is unclear. In June, new Xbox chief strategy officer Matthew Ball said the company lost "millions" of Game Pass subscribers after the service's 2025 price hike.
In the meantime, Xbox says it will "listen closely to player feedback before and after the change takes effect and share any adjustments we make."
