It is running at a loss.
The hearing around Microsoft's acquisition of Activision Blizzard is in full blast, with more and more details emerging every day. This time Sarah Bond, Corporate Vice President at Xbox, revealed that Xbox Cloud Gaming is the least popular feature on Game Pass Ultimate and is actually running at a loss.
When asked about how cloud gaming is used across consoles and mobile devices, Bond said that Xbox users mostly use it on consoles.
“What we’ve found is that it’s really being used by our players as a feature for the console," she said (via IGN). "Because what people can do is when you go in to start playing a game, instead of waiting to download it, you can start playing it right away while it’s downloading in the background, and that’s actually the majority of the usage of xCloud gaming today, is it’s just a console feature.”
Bond also said that the cloud gaming experience is not always ideal: "The games that are being streamed are games built for the console, but they’re being streamed to a different device, so it’s not always the best player experience."
Cloud gaming is a point of concern for the FTC and other regulators, often brought up as a reason why the Microsoft/Activision merge should be blocked.
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