Xbox Cloud Controller Reportedly Alive, Microsoft Says Cancellation Rumors Are False

A report that Microsoft killed a dedicated Xbox cloud gaming controller is being pushed back on by the company itself.

The claim came from The New York Times, which said Microsoft canceled plans for a new controller "devoted to cloud gaming." The report surfaced in the context of the concessions Microsoft made to win approval for its $75.4 billion purchase of Activision Blizzard, including changes to its cloud-gaming plans. A Microsoft spokesperson denied that the controller concept was dropped because of the regulatory process. Separately, sources told Windows Central that "rumors that Microsoft has canceled upcoming Xbox Cloud Gaming controllers are false."

Microsoft has never formally announced or shown a cloud controller. An image of one did leak earlier this year, and its unusual design drew plenty of raised eyebrows.

The regulatory backdrop is real, though. To ease concerns from the UK's Competition and Markets Authority that Microsoft might favor its own cloud network, the company struck deals with Ubisoft, Nware, EE, Boosteroid, Ubitus and Nvidia. Former Xbox CEO Phil Spencer, who led the division through the sale, has said those agreements removed one of the CMA's worries and put more games in front of more people.

The cloud service itself has had a bumpy stretch. After early signs of growth, Microsoft announced it will soon cap how much people can play and then charge more for extra time. Windows Central also reported that the dedicated cloud app on older Samsung TVs will go away, which the site attributed to those sets no longer receiving updates as Samsung focuses on newer models. Even so, sources told Windows Central that "there are absolutely no plans to decelerate on Xbox Cloud Gaming."

Cloud play remains a perk of Xbox Game Pass Ultimate, and later this year Microsoft plans to let people buy cloud game time without a Game Pass subscription. The pitch is that streaming avoids the cost of an Xbox or gaming PC, both pricier than ever thanks to AI-driven demand for memory and components, though a fast and steady internet connection is still required.

In other Xbox news, CEO Asha Sharma recently stressed that Xbox is "not for sale," responding to rumors that Microsoft might offload the struggling business.