Microsoft Is Betting Big on the Cloud With Xbox. Its Next Step Could Mark the End of Physical Game Formats

If anything has defined Xbox in recent years, it’s been Game Pass. Microsoft’s subscription service offers one of the most comprehensive game libraries available today. Along with access to games, Game Pass Ultimate includes Xbox Cloud Gaming, a cloud-based platform. While popular, the platform faces two major limitations: low bitrate and limited game availability. But that seems to be changing.

How Game Pass and the cloud work. Game Pass Ultimate includes free games and Xbox Cloud Gaming access. Subscribers can download and play games locally on a PC or console, though some games may be exceptions. However, only select titles are available in the cloud, and games purchased outside the cloud-enabled library must be played locally. Physical media remains necessary for certain cases.

Things weren’t always intended to be this way. When Microsoft launched Xbox Cloud Gaming in late 2019 (then called xCloud), the company said that by 2020 users would be able to “stream from the cloud the Xbox games you already own or will buy.” The goal has been to bring the entire Xbox game library to the cloud, but five years later, that feature hasn’t yet arrived. However, it appears Microsoft is still pursuing it.

Project Lapland. Project Lapland is reportedly the codename of Microsoft’s effort to achieve this goal, according to The Verge senior editor Tom Warren. The idea is to make Xbox games playable across devices, with no console or PC required. This would allow users to buy and play Xbox games on tablets or phones, whether or not they’re part of the Game Pass and Xbox Cloud Gaming catalog.

Xbox president Sarah Bond recently announced that this feature will be available on mobile starting in November. However, Warren reports that internal testing is supposedly already underway, with some Microsoft employees able to play 10 games on Xbox Cloud Gaming that aren’t part of Game Pass. The list includes Metro Exodus, The Witcher 3: Wild Hunt, and High on Life. It’s expected that the feature will soon be available to insiders, and eventually to all users.

The step forward cloud gaming needs to take. The problem with cloud gaming is that gamers can only access compatible titles. For instance, platforms like GeForce Now provide access to over 2,000 games, but if the title you want to play isn’t available, you’re out of luck. You either play it locally or wait for it to arrive in the cloud. This limitation also applies to Xbox Cloud Gaming, PlayStation’s streaming service, and others.

Some alternatives allow users to rent a computer running Windows in the cloud, enabling gameplay and other activities. Shadow is one such example, though it’s not as widely used as Xbox Cloud Gaming. However, it too limits users to games available on the PC, which doesn’t include every title.

The end of the physical format. This potential to stream any game from the cloud is another nail in the coffin of the physical format. It’s not only that games are shifting to digital—it’s that a console or PC may soon be unnecessary. With a reliable internet connection, users could buy a game in an online store and launch it in the cloud. Perhaps Google Stadia wasn’t too far off the mark.

Microsoft seems to be suggesting a future where consoles and PCs are mainly for maximizing game performance. While streaming inevitably involves compression and some input lag, local gameplay with physical media will always deliver a sharper, more responsive experience.

For the mainstream user who doesn’t want to spend money on a console or gaming PC and isn’t concerned with playing in 4K at 240 FPS, the cloud offers an affordable solution. This move from Microsoft addresses one of the main limitations of cloud gaming: the catalog. Now all Microsoft needs to do is improve Xbox Cloud Gaming’s bitrate, which, according to reports, is already in progress.

The bottom line. Gamers are gradually moving toward a future where the console is an app on a TV, smartphone, and tablet. Physical consoles aren’t likely to disappear anytime soon, but video game companies are increasingly prioritizing digital formats, as evidenced by the PS5 Pro without a disc drive. Subscriptions, the centerpiece of this digital landscape, will continue to play a key role as the cloud’s influence in the entertainment industry grows.

Image | Anton Porsche | Xataka On | Microsoft

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