• Microsoft may add a cheaper Xbox Cloud Gaming tier beyond the $19.99 Ultimate plan.
• It’s working with AMD on new hardware and AI for future Xbox.

Microsoft is again pointing to a cheaper future for Xbox Cloud Gaming, according to The Verge. The idea of a more affordable payment tier has surfaced before – first through FTC documents that revealed a “dedicated” version was in the works, and again when Xbox CFO Tim Stuart suggested a free ad-supported plan could be possible. Now the topic has returned, this time on Microsoft’s own Xbox podcast.

Jason Ronald, Microsoft’s VP of Next Generation, spoke about Xbox Cloud Gaming, Xbox Play Anywhere, and the company’s ongoing chip partnership with AMD. At the moment, the only way to stream Xbox games through the cloud is by paying for Game Pass Ultimate at $19.99 a month.

“One of the things we see is there’s a lot of players who use Game Pass Ultimate to access the cloud, whether that’s the primary way they play, or an additional way to play on the go,” Ronald said. “I think for us, it really opens up the opportunity to make it much more affordable, and make it more accessible to players. Whether that’s going into new regions, or new ways to actually access the [Xbox] cloud.”

His comments stop short of confirming a new tier, but the possibility has been in Microsoft’s plans for some time. Last year, the company expanded Xbox Cloud Gaming beyond just the Game Pass library, letting Ultimate subscribers stream certain titles they already owned. A lower-priced option, especially one aimed at mobile play, could build on those changes. Microsoft had even considered selling games directly through its Android app, with instant streaming available, but a legal dispute put that idea on hold.

Nvidia sets the stage at Gamescom

Microsoft’s renewed hints about affordability land just as Nvidia is preparing major GeForce Now news. Nvidia’s service has long had an edge over Xbox Cloud Gaming, offering PC-level performance, higher resolutions, stronger bitrates, and lower latency. Microsoft itself has integrated GeForce Now into Xbox game pages, acknowledging its technical lead.

As reported by Tom’s Hardware, Nvidia is kicking off Gamescom 2025 with a livestream that promises GeForce Now announcements, new GeForce features, and reveals of “highly anticipated” PC titles. The company has made it clear, however, that no new GPU hardware will debut at the event. Its RTX 50 series cards launched only eight months ago, and Nvidia typically waits a year or more before releasing refreshed models. Industry watchers expect news of an RTX 50 “Super” refresh in 2026 instead.

That leaves GeForce Now itself as the focus. The “ultimate” plan still runs on older Ada Lovelace GPUs and caps out at an RTX 4080-class experience. DLSS is also limited to version 3, even though Ada Lovelace supports features of DLSS 4. Many expect Nvidia to announce an upgrade of its data centres to newer Blackwell server GPUs, which could redefine what its top-tier cloud service can deliver.

Looking ahead to Microsoft’s next Xbox

While Nvidia sharpens GeForce Now, Microsoft is also preparing for its next generation of hardware. Ronald confirmed that Xbox is working with AMD on dedicated silicon to power its next console and cloud ambitions.

“Together with AMD, we’re designing dedicated silicon and hardware to enable the next generation of gaming experiences,” he said. “We’re investing deeply in the next generation of rendering technologies, like neural rendering, which will bring a new level of quality to the games that you’re having.”

Microsoft’s roadmap points toward deeper integration between Xbox and Windows, more flexibility in digital stores, and greater use of AI inside games. Ronald added that the company is also building silicon to support AI features, saying these will be “transformative in how you actually experience your gameplay.” Some touted features will appear first on the upcoming Xbox Ally X device, which includes an NPU chip similar to Microsoft’s Copilot Plus PCs.

The combination of cheaper cloud access, stronger hardware, and AI-driven features suggests Microsoft is positioning Xbox for a new phase where streaming, PC, and console gaming overlap more.

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

Explore other upcoming enterprise technology events and webinars powered by TechForge here.