Xbox Cloud Gaming prepares for major upgrade with new performance tiers

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Xbox Cloud Gaming could soon see one of its most significant upgrades since launch, as signs suggest Microsoft is preparing to introduce higher-quality performance tiers. The move may help narrow the gap with NVIDIA GeForce Now, which is often considered the leader in cloud gaming performance.

Currently offered as part of Xbox Game Pass Ultimate and select tiers, Xbox Cloud Gaming remains in beta, though industry sources suggest it could officially exit beta later this year. Microsoft has already begun expanding access to the service by adding it to more affordable Game Pass plans, opening it up to users who do not require the complete Game Pass library.

Until now, one of the main criticisms has been visual fidelity. While Xbox Cloud Gaming matches NVIDIA’s offering in theory, GeForce Now has consistently been praised for higher resolutions and bitrates, resulting in a closer-to-native experience. That may soon change.

According to developer @RedPhx, who works on the Better XCloud enhancement tool, Microsoft is testing new resolution modes: 720HQ, 1080HQ, and 1440p. These would supplement the existing 720p and 1080p options, with the “HQ” modes delivering higher bitrates and sharper visuals. The 1440p option, meanwhile, could improve clarity on larger displays, offering a noticeable upgrade for those using TVs and monitors.

Microsoft may follow NVIDIA’s subscription model by reserving the higher-quality tiers for Xbox Game Pass Ultimate subscribers, while standard resolutions remain available on lower-priced plans. Such an approach would align with the company’s strategy of tiered access across Game Pass.

Beyond resolution, Microsoft has been steadily expanding Xbox Cloud Gaming’s reach. The service is already integrated into Samsung and LG smart TVs, supported natively on Windows 11 through the Xbox app, and accessible via third-party handhelds like the Logitech G Cloud. It has even extended into vehicles through LG’s WebOS platform. However, despite these efforts, cloud gaming adoption has yet to break into the mainstream.

One key challenge has been app store restrictions. Both Apple and Google have blocked Microsoft and NVIDIA from offering native apps on their platforms, forcing Microsoft to rely on its Xbox.com/play browser-based solution. While functional, this limits visibility and discoverability compared to having a dedicated app.

Past attempts to diversify hardware, such as the abandoned Project Hobart console, also never materialised due to costs. As a result, Microsoft has had to double down on software and partnerships.

Looking ahead, much of Xbox Cloud Gaming’s growth may depend on content. While past generations saw games like Call of Duty driving adoption, today’s younger audiences are more engaged with titles such as Roblox, which already run natively on mobile. This could limit the role of cloud streaming to more of a complementary service within the Xbox ecosystem rather than a standalone driver of growth.

Still, in markets where tariffs or hardware costs make consoles less accessible, Xbox Cloud Gaming could become a more affordable way to play. With higher resolutions, better picture quality, and broader access, Microsoft’s service may be on the verge of reaching its next stage of maturity. An official announcement from the company is expected in the coming months.