Abstract:
A new report shows that Xbox will cap cloud gaming time for Game Pass Ultimate members at 15 hours because the service will no longer be profitable beyond this time. Earlier this week, Xbox announced that it would add strict monthly time limits to its cloud game streaming service, which will apply to all three levels of Xbox Game Pass subscriptions. Game Pass Essential members get 5 hours of cloud game streaming time per month, Premium members get 10 hours, and Ultimate members get 15 hours a month.
According to Windows Central citing unnamed Microsoft internal sources, this time limit is not set arbitrarily. It is said to correspond to Microsoft's own profit and loss threshold. Use beyond this time will cause the company to incur losses.
Windows Central pointed out that this cost pressure stems from the overall tightening of server memory resources caused by Microsoft's vigorous deployment of AI. Azure's computing power is increasingly allocated to AI workloads instead of game streaming business. The media attributes this restriction as part of Xbox's overall cost reduction measures. Along with the recent layoffs and project cancellations, it is part of a series of actions. The department is facing pressure to increase profitability.
As Connor reported to us this week, Statista's 2025 report data shows that American players play video games for an average of 9.5 hours per week, British players play 6.38 hours, and the global average is 6.56 hours.
Although Xbox is shrinking its cloud gaming business plans and various problems caused by the expansion of AI data centers seem to be endless, industry giants are still optimistic about the prospects of cloud gaming.
Take-Two CEO Strauss Zelnick said in a recent earnings report that he believes everyone will be streaming games in about "three years." At the same time, Xbox also launched a test of ad-supported game streaming in its Insider Program. The current hardware market is facing the dilemma of rising costs, and the prices of game consoles and gaming PCs are becoming increasingly unaffordable. Although cloud gaming itself still has many problems, it is likely to become the only choice for many players in the future.
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