Microsoft is reportedly enhancing its Xbox Cloud Gaming service with some significant upgrades, including the addition of 4K streaming support and the ability to play more of your owned games, among other improvements. These developments are expected to enhance the value of Xbox Game Pass Ultimate, the premium tier of Microsoft's subscription service, which remains the exclusive way to access Xbox's cloud gaming platform.
Initially introduced as Project xCloud at E3 2018, Xbox Cloud Gaming launched its public preview in 2019 before dropping the xCloud branding in favor of its current name. By June 2021, Xbox Game Pass Ultimate subscribers gained full access to the cloud gaming service, which has since been updated with numerous improvements to both its performance and capabilities.
New reports from Windows Central's Jez Corden suggest that Microsoft is working on expanding the service’s features, including 4K streaming and higher bitrate support. Additionally, the company is reportedly exploring the possibility of allowing more non-Game Pass titles to be playable via Xbox Cloud Gaming. Streaming of owned games was initially rolled out in December 2024 and is expected to be further developed.
To support these upgrades, Microsoft is reportedly investing in improving the Xbox Cloud Gaming infrastructure by increasing the chip supply for the service. This shift signals a growing demand for cloud gaming, prompting Microsoft to upgrade its server farms accordingly. Xbox Cloud Gaming relies on custom Xbox Series X server blades running games on Series S profiles, a strategy that enhances operational efficiency.
While the exact timeline for these upgrades remains unclear, it’s expected that Microsoft will roll out these features to a select group of users first, with a gradual global expansion. The 4K streaming upgrade, in particular, will likely be tested thoroughly to ensure the cloud infrastructure can handle the higher demands.
This push to enhance Xbox Cloud Gaming is a key part of Microsoft's efforts to grow Xbox Game Pass Ultimate. Furthermore, rumors suggest that the company may even be planning to introduce a cloud-only version of Xbox Game Pass, with speculation that this could happen as soon as summer 2024.

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