Xbox Cloud Gaming investment is now 'zero' as Fortnite on xCloud flops

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Microsoft appears to have given up on cloud gaming in the short term, according to surprising new information from the Xbox leaks.

. They have now all been taken offline but people are still sorting through the information and there’s some very interesting stuff about Microsoft’s Project xCloud.

A newly discovered transcript featuring Xbox boss Phil Spencer, claims that, ‘I would say our investment in specific xCloud is probably in the single digit millions in fiscal year 2023.’ The conversation seems to be from another, unnamed, exec outside of the Xbox division, asking about how much money Xbox is spending on cloud gaming during the financial year that ended this April.When asked what the plan is going forward, for Xbox Cloud Gaming, the answer from Spencer is even more surprising: ‘It’s unclear.

The execs also discuss the initiative from last June, to offer Fortnite via Cloud Gaming – inspired by the fact that it is not available on the Apple App Store. However, Spencer admits that ‘our success there has been fairly marginal.’However, according to the transcript on, Spencer does add that: ‘I fundamentally believe without native mobile games as part of Xbox that we will fail to make traction on mobile devices.

In other words, he wants exclusive games and killer apps to push Xbox’s mobile content, which he has previously said was theNevertheless, this all seems highly surprising, as it was widely assumed that cloud gaming is central to Microsoft’s future gaming plans – not least because it’s one area that Sony, and Nintendo, cannot compete, since Microsoft is a much bigger company and already has server farms around the world., which seems to heavily rely on the cloud.

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