Early indications suggest Xbox Cloud Gaming is preparing for a significant quality upgrade. According to a Windows Central journalist, the platform, which has mainly focused on latency improvements until now, may soon see major advances in visual fidelity — potentially bringing it closer to a native gameplay experience.

Microsoft’s gaming ecosystem once revolved entirely around Xbox console hardware, but those days are gone. The company has since extended Xbox support to third-party PC hardware like the Xbox Ally. With Xbox Play Anywhere, it has also brought console titles to PC, but the true entry point for brand-new users is the cloud.

Xbox Cloud Gaming still carries a beta tag, though a Windows Central journalist has reported that Microsoft could remove it later this year as the company prepares the service for a full launch.

Recently, Microsoft revealed that Xbox Cloud Gaming will expand into more Game Pass tiers, offering a cheaper and more accessible option for players who don’t need the entire Game Pass library. For many, however, pricing isn’t the main issue.

On paper, Xbox Cloud Gaming should rival NVIDIA GeForce Now in terms of latency, but public opinion continues to place NVIDIA at the top of the cloud gaming market — largely due to raw performance. NVIDIA’s premium tiers provide sharper resolutions and higher bitrates than Xbox Cloud Gaming currently offers, delivering an experience closer to native gameplay. Yet the gap may soon begin to narrow.

@RedPhx, developer of the Better XCloud enhancement tool, recently spotted new performance tiers within Microsoft’s service. These include 720HQ, 1080HQ, and 1440, expanding on the existing 720p and 1080p streams.

The implication is that the 720HQ and 1080HQ modes will bring higher bitrates and therefore sharper image quality, while the 1440 mode should deliver clearer visuals on larger TVs and monitors. For now, however, 1440 does not appear to include a separate HQ option.

Speculation suggests Microsoft may align higher-quality modes with higher Game Pass tiers, echoing NVIDIA’s subscription model. Standard 720p and 1080p could remain in the lower tiers, while HQ modes and 1440 would be reserved for Game Pass Ultimate subscribers. Naturally, higher resolutions and bitrates also mean increased resource demands — and greater costs — for Microsoft.

Lower tiers like Game Pass Core and Standard don’t include the full catalog available through Ultimate. They do, however, allow users to purchase cloud-enabled titles permanently, a feature similar to Google’s now-defunct Stadia platform. Xbox refers to this as “Stream Your Own Game,” which already includes dozens of playable titles.

A Much-Needed Quality Boost

Microsoft has teamed up with Samsung and LG to pre-install Xbox Cloud Gaming on TVs. It also added native support on Windows 11 via the Xbox app. Accessories like Logitech’s G Cloud and Razer’s Kishi V3 Pro also support the platform, and just recently, Microsoft announced that Xbox Cloud Gaming would even be available in cars via LG’s WebOS platform. Despite these efforts, the service hasn’t yet reached mainstream adoption.

Major hurdles remain. Google and Apple currently enforce restrictions preventing Microsoft and NVIDIA from creating new sales platforms within their mobile ecosystems. Microsoft responded by developing a web app at Xbox.com/play, which is functional but lacks the visibility of native app store access.

Microsoft also once explored an Android-based cloud console, known internally as Project Hobart, though it was abandoned due to cost concerns. Without app store integration, Xbox Cloud Gaming relies heavily on word of mouth to attract users, which has proven less effective than Microsoft likely hoped.

With sharper visuals, improved bitrates, broader accessibility, and expansion into new markets, Xbox Cloud Gaming holds enormous potential. According to the Windows Central journalist, adoption among Gen Z and younger gamers may hinge less on affordability and more on content. While Call of Duty once might have driven interest, titles like Roblox now dominate younger audiences, many of whom already enjoy native mobile versions.

As such, Xbox Cloud Gaming may remain primarily a complementary option for existing Xbox users. In certain markets, where tariffs and taxes inflate console prices, cloud gaming could serve as a cost-effective alternative. Yet Microsoft has historically struggled to gain significant traction outside its Anglo-centric core regions.

According to the Windows Central journalist, an official announcement on new resolution and bitrate tiers could arrive soon.

Source: Windows Central