Xbox Cloud Gaming, a service from Microsoft's Xbox division, allows users to stream and play Xbox games on various devices without needing to download or install them. Launched for Xbox Game Pass Ultimate subscribers in September 2020 (following a beta period starting November 2019), it is included with the subscription at no extra cost. The service functions by connecting the user's device to a remote server, effectively running the game in the cloud.
Around 2016, the ideas for a cloud gaming service emerged within Microsoft. Kareem Choudhry, who was also developing Xbox 360 backwards compatibility for Xbox One, envisioned providing games without a console. Phil Spencer approved the formation of a small team to explore the feasibility of cloud gaming.
In 2018, each server had four customized Xbox One S-based units for the Project xCloud teaser.
In May 2019, Project xCloud entered its home testing phase, allowing it to be used outside the lab environment.
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, asserting 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 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 if they had used that service as part of Xbox Live Gold, and some games supported touch controls on mobile devices.
In March 2021, Microsoft released an update to the Android Xbox Cloud Gaming client that allowed dual-screened devices like the Surface Duo to use the second screen to host the touch controls. Several games like Minecraft Dungeons and New Super Lucky's Tale supported the dedicated gamepad on the second screen.
On April 20, 2021, Microsoft started an invite-only beta test of the browser version of xCloud.
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.
In June 2022, the Xbox Cloud Gaming service was expanded further to include Argentina and New Zealand.
By November 2022, Phil Spencer stated that Microsoft had ceased development of the Keystone streaming device, as it was too costly compared to the Xbox Series S.
According to reports in March 2026, Xbox has shifted its strategic focus toward dedicated console hardware, moving away from the "Xbox is Every Screen" marketing campaign.
For the second quarter of the 2026 fiscal year, Microsoft reported a record revenue of $8.2 billion, representing a year-over-year increase driven primarily by content and services.
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