Microsoft announced changes to its Xbox Cloud Gaming service on Thursday, introducing strict monthly time limits for subscribers while simultaneously opening the platform to non-subscribers through a new pay-as-you-go purchasing model.
Under the new policy, streaming time will be tiered based on the user’s Game Pass subscription level. The company stated in a blog post that the update “will provide another option for people who want occasional access to cloud gaming or do not want a recurring Game Pass subscription.”
According to the announcement, users subscribed to Game Pass Ultimate, which currently costs $22.99 per month, will be allocated a limit of 15 hours of cloud gaming per month. Subscribers to the mid-tier Game Pass Premium, priced at $14.99 per month, will receive 10 hours per month. Those on the entry-level Game Pass Essential plan, which costs $9.99 per month after a 14-day trial for $1, will be limited to just five hours of streaming per month.
Once users exceed their allocated hours, they will need to purchase hourly bundles to continue playing via the cloud. Additionally, users who do not subscribe to Game Pass at all will be able to stream eligible games they own by directly purchasing playtime hours for supported devices.
Microsoft noted that exact pricing for the hourly bundles and further operational details will be shared before the changes take effect in November.
The shift to a metered model follows a period of volatility for the gaming division. In April, Microsoft reduced the prices of some Game Pass subscriptions after new Xbox CEO Asha Sharma wrote in an internal memo that she believed the service was too expensive.
The gaming arm has also faced significant contraction. The division was hit hard by Microsoft’s layoffs in July, which saw roughly 20% of Xbox staff slashed. The cuts included 1,600 jobs eliminated in July alone, with a total of 3,200 Xbox roles slated to be cut through fiscal 2027.
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