The Xbox Cloud Gaming Controller Is Not Dead, Apparently

Microsoft agreed to several big changes to appease regulators in its effort to get the blockbuster $75.4 billion deal to buy Activision Blizzard approved, including tweaks to its cloud-gaming projects. Now, more than a year later, we’re still learning more about this, including a new claim from The New York Times that Microsoft canceled plans for a new Xbox controller “devoted to cloud gaming.”

A spokesperson for Microsoft denied that the controller concept was abandoned due to the regulatory process. Separately, sources told Windows Central that “rumors that Microsoft has canceled upcoming Xbox Cloud Gaming controllers are false.”

Microsoft never formally announced or unveiled any controller for cloud gaming, but an image of it leaked this year, prompting raised eyebrows for its … unique design.

Microsoft cut deals with a variety of companies–including Ubisoft, Nware, EE, Boosteroid, Ubitus, and Nvidia–to help mitigate concerns from the UK’s Competition & Markets Authority (CMA) that Microsoft might give preferential treatment to its own cloud gaming networks.

Former Xbox CEO Phil Spencer, who led Xbox during the sale process, said such deals freed up one of the concerns the CMA had and helped bring more games to more people.

The Xbox cloud-gaming service showed some initial signs of growth, but the program suffered a setback recently when Microsoft announced that it will soon put limits on how much people can use the service, and then charge them more to keep playing. Additionally, Windows Central recently discovered that the dedicated cloud gaming app for older Samsung TVs will go away soon due to a compatibility issue. The site later reported that the support for older Samsung TVs is due to “the lack of updates those sets are getting” as Samsung focuses on its newer units.

Additionally, sources told Windows Central “there are absolutely no plans to decelerate on Xbox Cloud Gaming” generally.

Access to cloud gaming is one of the perks of Xbox Game Pass Ultimate, allowing people to stream their games. Later this year, people will be able to buy game time for cloud gaming on Xbox without a Game Pass membership.

One of the appeals of cloud gaming, at least in theory, is that it requires no expensive local hardware like an Xbox or PC, both of which are more expensive than ever due to the AI-fueled demand for memory and components. People need a consistent and fast internet connection for the best experience.

In other Xbox news, CEO Asha Sharma recently stressed that Xbox is “not for sale,” following rumors and reports that Microsoft could unload the struggling company.