Recent revelations indicate that Microsoft has been contemplating the expansion of its Xbox Cloud Gaming service to include PC games. Currently, the service is confined to Xbox Series X and Xbox Series S titles due to the specialized Xbox Series X chips that power the servers. However, internal emails from the FTC v. Microsoft case have shed light on the company's intentions to harness its Azure servers for streaming PC games.
Behind-the-Scenes Conversations
In July 2021, Microsoft CEO Satya Nadella reached out to Xbox executives, including Phil Spencer, Kareem Choudhry, and Sarah Bond, following speculations about Google's plans to transform its Stadia cloud gaming service into a white-label platform for developers. Nadella's query, “But I am assuming we will do the same for Game Pass PC – right?” was met with affirmative responses.
Stadia has since failed, but Microsoft's goals are ongoing. Spencer highlighted the potential of Azure for streaming native PC games, emphasizing the cost-effectiveness of reusing hardware for multiple purposes. Choudhry further confirmed the ongoing efforts to develop a suitable Azure SKU to meet external customer demands and support the xCloud PC streaming stack.
The Competitive Landscape
While Microsoft's Xbox Cloud Gaming has seen a slowdown in development over the past year, the company has not been dormant. Recent collaborations, such as the 10-year deal with British mobile network EE, hint at the possibility of Xbox PC games being made available to EE customers.
Additionally, Microsoft's testing of mouse and keyboard support for Xbox Cloud Gaming suggests further advancements in the pipeline. In the broader gaming ecosystem, while Google's Stadia has faced challenges, with its eventual shutdown in January 2023, Microsoft remains vigilant, considering NVIDIA's GeForce Now as its primary competitor and keeping a close watch on other players like Amazon's Luna.
