There are early signs that Xbox Cloud Gaming is set for a BIG upgrade — could it finally match NVIDIA GeForce Now?

Xbox Cloud Gaming is good, but it could be better.

Microsoft's gaming platform previously revolved entirely around Xbox console hardware, but those times are gone. Now, Microsoft has been hard at work to expand Xbox's footprint to third-party PC hardware, such as the Xbox Ally. Microsoft has also been bringing Xbox games to PC via Xbox Play Anywhere, but the tip of the spear for truly "new" users might be cloud.

Xbox Cloud Gaming currently has a beta tag, but I've been told that it could exit beta later this year as Microsoft preps it for the prime time.

A couple of weeks ago, Microsoft announced that Xbox Cloud Gaming will be coming to more Xbox Game Pass tiers, making it cheaper and more accessible for those who don't need or want full-fat Xbox Game Pass. But for many, price isn't the main issue.

Xbox Cloud Gaming on paper should be equivalent to NVIDIA GeForce Now for latency, but in practice public perception places NVIDIA GFN at the top of the cloud gaming pile — at least for raw performance. NVIDIA's highest tiers offer sharper resolutions and higher bitrates than what Xbox Cloud Gaming offers today, giving an experience that is closer to native playback. But, perhaps the gap is about to shrink a little more.

@RedPhx who develops Xbox Cloud Gaming enhancement tool Better XCloud recently noticed new performance tiers for Microsoft's service.

The new resolutions are 720HQ, 1080HQ, and 1440, joining the existing 720 and 1080 streams available today.

The implication here is that the 720 and 1080 "HQ" modes will potentially provide higher bitrates, and thus sharper picture quality. The 1440 mode should also provide a cleaner, sharper experience on larger TVs and monitors, although it doesn't seem to have its own "HQ" mode as of writing.

To speculate, Microsoft may be exploring providing quality modes on higher Xbox Game Pass tiers, similarly to how NVIDIA GeForce Now subscriptions work. I could see 720 and 1080 resolutions being offered on the lower tiers of Xbox Game Pass, while the HQ modes and 1440 mode runs exclusively to Xbox Game Pass Ultimate. Obviously, higher resolutions and bitrates mean more power consumption, and thus, more costs on the platform holder.

Lower tiers of Xbox Game Pass, namely Xbox Game Pass Core and Standard, don't include the full library offering that Xbox Game Pass Ultimate does. What it does do, however, is allow you to buy cloud games to own permanently, similar to Google's dead Stadia platform. Xbox calls this feature "Stream Your Own Game" (no points for catchiness), and it already contains dozens upon dozens of games you can buy and then play on any device.

A much, much needed quality boost

Microsoft has partnered with the likes of Samsung and LG to pre-install Xbox Cloud Gaming onto TVs. Microsoft also brought Xbox Cloud Gaming natively to Windows 11 via the Xbox app. There are third-party Xbox Cloud Gaming devices and attachments out there like the Logitech G Cloud and the Razer Kishi V3 Pro. And Microsoft even announced that Xbox Cloud Gaming is coming to cars today via LG's WebOS platform. But, it doesn't quite seem like Xbox Cloud Gaming has become much of a mainstream hit yet.

Microsoft faces significant barriers to adoption. A de-facto ban on the service is currently being enforced by both Google and Apple, who want to prevent Microsoft and NVIDIA from offering a new point of sale from within their mobile ecosystems. Microsoft responded by building out a big custom Xbox.com/play web app instead, which is very good, but likely suffers heavily in terms of visibility.

Microsoft also previously planned to make an Android-based Xbox Cloud Gaming console called Project Hobart, which never materialized due to costs.

Without app store access, Xbox Cloud Gaming has to rely on word of mouth to find crucial new users, but it doesn't seem to be blowing up as much as Microsoft would probably like.

With improvements to bitrates and resolution, more affordable access, and a previously-promised expansion to new markets, Xbox Cloud Gaming still has a lot of potential.

I suspect finding adoption through Gen-Z and younger cohorts will revolve primarily around content, rather than more affordability, though. Call of Duty would have been a vehicle for this in decades past, but games like Roblox have now captured the attention of younger audiences now, and many of these types of games already have native mobile versions.

Xbox Cloud Gaming will likely function primarily as a complementary service for people already present in the Xbox ecosystem. There are markets where taxes and tariffs might make cloud gaming a more affordable alternative than traditional console gaming, but Microsoft hasn't shown itself to be particularly good at penetrating consumer markets outside of its Anglo-centric home turf.

Hopefully, we'll get an official announcement on the new resolutions and bitrate options soon. I'll be sure to let you know the details when we do.