Plans for a dedicated Xbox controller for cloud gaming have reportedly been canceled, according to a claim from The New York Times. A Microsoft spokesperson denied that the decision was influenced by regulatory demands stemming from the acquisition of Activision Blizzard, but did not offer an alternative reason for the cancellation. While Microsoft never officially announced such a device, an image of a unique-looking controller surfaced earlier this year, sparking speculation.
Microsoft made several concessions to regulators to secure approval for its $75.4 billion Activision Blizzard acquisition. Among these were agreements related to its cloud gaming services. The company struck deals with third-party providers like Ubisoft, Nware, EE, Boosteroid, Ubitus, and Nvidia to address concerns raised by the UK's Competition and Markets Authority (CMA) about potential preferential treatment for Microsoft's own cloud gaming infrastructure. At the time, former Xbox CEO Phil Spencer stated these partnerships helped alleviate CMA's concerns and expand game accessibility.
The Xbox cloud-gaming service, a feature of Xbox Game Pass Ultimate, has seen some initial growth. However, recent developments indicate a shift in strategy, including upcoming limits on usage and increased costs for continued play. Furthermore, the dedicated cloud gaming app for older Samsung TVs is set to be discontinued due to compatibility issues. Microsoft plans to allow users to purchase cloud gaming time on Xbox later this year without requiring a Game Pass membership.
Cloud gaming offers the theoretical advantage of reducing the need for expensive local hardware, a benefit highlighted by current market conditions driving up the cost of consoles and PCs. A stable and fast internet connection remains essential for an optimal experience. Separately, Xbox CEO Asha Sharma recently addressed rumors about the company being for sale, asserting that Xbox is "not for sale."