Xbox Cloud Streaming Limits Hours Due to Compute Demands for AI
Microsoft's Xbox Cloud Streaming service is facing significant changes this November. The company announced that it will no longer offer unlimited streaming hours, even for top-tier Ultimate subscribers. They will now be limited to 15 hours per month.
According to an insider, the main reason for this change is due to 'compute demands for AI'. This refers to the increasing need for computational power and server space to support artificial intelligence applications outside of Xbox. The insider claims that using Azure server rack space for anything other than AI results in significant losses.
This news comes as a surprise, especially considering Microsoft's previous statements on the matter. In an initial blog post, they mentioned that the cost of providing cloud gaming grows as more people use it and play for longer. However, this explanation seems to be at odds with the insider's claim that compute demands for AI are the primary reason.
The irony is not lost on many, as Xbox's current issues, such as streaming costs and component prices, have been exacerbated by Microsoft's own AI ambitions outside of Xbox.