Microsoft Cuts Cloud Gaming Time for Xbox Game Pass Subscribers

Microsoft has announced that it will limit cloud gaming hours for its Xbox Game Pass subscribers starting in November. The move aims to balance usage and costs, allowing users to purchase additional hours once they exceed their monthly limits.

The company's decision comes as a response to the increasing demand for computing resources, particularly with the expansion of AI products such as GitHub Copilot and Microsoft 365 Copilot. By implementing usage-based pricing, Microsoft hopes to align its costs with the growing demand for cloud services while still providing value to its subscribers.

Xbox CEO Asha Sharma is exploring these business model changes to drive growth and profitability in a competitive market. The company's current valuation suggests that investors may have an opportunity to acquire shares at a price lower than their intrinsic value, according to GuruFocus.