Xbox Cloud Gaming, or Xbox Cloud, is Microsoft's cloud gaming service, launched in beta in November 2019 and fully released on September 15, 2020, for Xbox Game Pass Ultimate subscribers at no extra cost. It allows users to stream and play Xbox games on various devices by connecting to a remote server, eliminating the need for local downloads or powerful hardware.
Around 2016, ideas for the cloud service emerged within Microsoft, coinciding with Kareem Choudhry's development of Xbox 360 backwards compatibility for the Xbox One. Choudhry envisioned providing games without a console, leading to a small team's feasibility study.
In 2018, the initial hardware teaser utilized four customized Xbox One S-based units per server.
In May 2019, Project xCloud entered its home testing phase, allowing usage outside the lab environment.
In 2019, for the service's launch, the number of customized Xbox One S-based units was doubled to eight per server in a 2U enclosure.
On February 12, 2020, Project xCloud was launched on Apple's mobile operating system, iOS, in a preview version.
In August 2020, Microsoft halted iOS testing of xCloud, asserting that policies on the Apple App Store limited the functionality they could provide for the service. Apple clarified that cloud streaming services bypass normal app checks, thus refused to allow xCloud on the platform.
In September 2020, Apple altered its rules, allowing xCloud and other cloud gaming apps to work on iOS but with restrictions. Each game must be offered as an individual download on the iOS store, which users must use before playing. Microsoft responded negatively to this change.
In October 2020, Microsoft considered making each game its own application or bringing xCloud to iOS as a browser-based web application to work around Apple's restrictions, according to The Verge based on emails uncovered during the Epic Games v. Apple trial.
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 can use cloud-based saved games if they have used Xbox Live Gold. Some games support touch controls on mobile devices.
In March 2021, Microsoft released an update to the Android Xbox Cloud Gaming client allowing dual-screened devices like the Surface Duo to use the second screen to host touch controls. Several notable games such as Minecraft Dungeons and New Super Lucky's Tale support 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 Windows computers. 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, Spencer stated that Microsoft had ceased development of the Keystone streaming device, as it was too costly compared to the Xbox Series S.
In October 2025, alongside updates to Xbox Game Pass, Microsoft brought Cloud Gaming out of its beta period, making it available for Premium and Ultimate tiers. Users reported being offered a free, ad-supported version, limited to owned games and a small rotating selection of free titles.
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, a record revenue of $8.2 billion was reported, representing a year-over-year increase driven primarily by content and services.
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