Xbox Cuts Cloud Gaming Hours Amid Microsoft's Profit Pressure

Xbox Cloud Gaming has introduced a new hourly cap for its Game Pass Ultimate subscribers. According to Windows Central, which cites unnamed Microsoft sources, this cap is set at 15 hours per month because it's where the service stops being profitable.

Game Pass Essential users will be able to stream games through the cloud for five hours a month, while Premium subscribers get ten hours. The move comes as part of a broader cost-cutting pattern across Xbox, which has recently laid off staff and cancelled projects.

The report suggests that Microsoft's AI investments have put pressure on server memory, prioritizing Azure capacity for AI workloads over game streaming. This has led to the caps being implemented, with industry giants remaining bullish on cloud gaming despite its issues.