Microsoft has made slight changes to its cloud service, resulting in some differences between the new Xbox Cloud Gaming system and the old one.

On Friday, the gaming division of Microsoft announced that the Xbox app will be available on popular TCL TVs in the coming months. This will allow TCL smart TV owners to play Xbox games via the cloud. Microsoft has already launched the same app on Samsung and LG TVs as part of its effort to bring the hardcore gaming experience to those who don’t own dedicated gaming devices. Of course, an Xbox Game Pass subscription is required. However, Microsoft announced that starting in November, it will significantly reduce the number of monthly hours available for Xbox Cloud Gaming at all subscription tiers.

Previously, there were no limits, which was admittedly excessive. Even Nvidia has introduced limits on its industry-leading GeForce Now service, which recently added support for DLSS 4.5 and 5, further increasing its advantage over competitors. The new limits for Xbox Game Pass, however, are shockingly low: five hours for the Essential tier, 10 hours for the Premium tier, and 15 hours for the Ultimate tier. Microsoft claims that the change affects only 4% of users, but that seems like an exaggeration. Even with the Ultimate plan, this is barely enough to complete one average, mid-sized, single-player game per month.

Jez Corden, an editor at Windows Central, shared further details about these changes to Xbox Cloud Gaming. He reported that Microsoft would incur a loss if the 15-hour monthly limit were exceeded. Given the high computational demands of AI, the company would prefer not to waste server resources in this way. This is part of Asha Sharma’s plan to restructure Xbox. She has openly discussed the need to return to profitability after extremely disappointing profit margins, which she attributed to the division’s over-expansion. While this may not be a huge blow to the Xbox community since most weren’t playing in the cloud anyway, it clearly shows Microsoft’s waning commitment to cloud gaming.

This is ironic, considering that cloud gaming is becoming an increasingly attractive option as hardware prices continue to rise due to component shortages. Take-Two CEO Strauss Zelnick recently stated that he believes the sector will take off within three years and that the user base will grow tenfold. If that happens, Microsoft and Xbox may cede yet another segment of the gaming industry to a more capable competitor.

Source: WCCFTech, Windows Central