Xbox Cloud Gaming, part of Microsoft's Xbox service, allows users to play Xbox games on various devices by streaming them from remote servers. Launched to Xbox Game Pass Ultimate subscribers on September 15, 2020, after an initial beta phase starting in November 2019, it offers a convenient way to access a library of games without needing to download them locally. It is included as part of the Xbox Game Pass Ultimate subscription, providing access to cloud gaming at no extra cost.
Around 2016, the initial ideas for the cloud gaming service began to form within Microsoft, coinciding with Kareem Choudhry's development of Xbox 360 backwards compatibility for the Xbox One. Choudhry proposed providing games without a console, gaining approval from Spencer to explore the feasibility of cloud gaming.
In May 2019, Project xCloud entered its home testing phase, allowing usage outside of the lab environment.
In 2019, the server hardware was upgraded to eight customized Xbox One S-based units per server in a 2U enclosure for the service's launch. Additionally, power consumption was reduced by 30% through processor-specific power tuning, and video output was set for 120 Hz to reduce latency.
On February 12, 2020, Project xCloud launched on Apple's mobile operating system in a preview version.
In August 2020, Microsoft halted iOS testing for xCloud, citing that policies on the Apple App Store limited the functionality they could provide for the service. Apple clarified that cloud streaming services allow Microsoft to release games onto the iOS platform that bypass normal checks.
In September 2020, Apple altered its rules allowing xCloud and other cloud gaming apps to work on iOS, with the restriction that each game must be offered as an individual download on the iOS store before playing. Microsoft responded negatively to this change.
According to The Verge, based on emails from the Epic Games v. Apple trial, Microsoft considered making each game its own application to satisfy Apple's requirements. In October 2020, Microsoft suggested it may bring xCloud to iOS as a browser-based web application to avoid App Store limitations.
In March 2021, Microsoft introduced cloud play support for selected original Xbox and Xbox 360 titles using its backward compatibility program with 16 titles available. Players could use cloud-based saved games from the original release and some games supported official touch controls on mobile devices.
In March 2021, Microsoft released an update to the Android Xbox Cloud Gaming client that allowed dual-screen devices like the Surface Duo to use the second screen for touch controls. Games like Minecraft Dungeons and New Super Lucky's Tale supported the dedicated gamepad on the second screen.
On September 14, 2021, Xbox Cloud Gaming was officially released as part of the Xbox app for Windows, along with Remote Play support from Xbox consoles to a Windows computer. Microsoft also introduced a Clarity Boost feature for Windows users through the Edge browser to improve streamed content visuals.
In June 2022, Xbox Cloud Gaming was further expanded to include Argentina and New Zealand, continuing its global reach.
By November 2022, Spencer stated that Microsoft had ceased development of the Keystone device, as it was deemed too costly compared to the Xbox Series S and exceeded the envisioned $99-$129 price range.
In October 2025, Microsoft brought Cloud Gaming out of its beta period as part of updates to the Xbox Game Pass program, making it available for the Premium and Ultimate tiers. Some users reported being offered a free, ad-supported version of Xbox Cloud Gaming.
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