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Xbox Tests Paid Cloud Gaming as Report Points to $1,200-$1,800 Next-Gen Console

Xbox is testing paid cloud gaming for non-Game Pass users; Fortune says its next console may cost $1,200-$1,800.

AI News Feed · 2026-10-22 06:20

During the preview, players can buy cloud gaming access in blocks of 10 hours for $4, 25 hours for $8 or 50 hours for $12. Xbox calls these introductory launch prices, Engadget reported, leaving open the possibility that final prices could change next month. Purchases provide an ad-free cloud gaming experience with shorter wait times, high-quality streaming and playtime that remains available until it is used, according to the report.

The preview comes ahead of broader changes to Xbox cloud gaming in November. Game Pass subscribers will begin seeing monthly limits of five to 15 hours on how long they can stream, and they will have to pay to go beyond those limits. Xbox Insider participants without a Game Pass subscription are getting access to the paid cloud playtime option before those limits take effect. Since the summer, Insiders have also been able to try ad-supported cloud streaming for free.

Xbox has been overhauling several of its gaming offerings in recent months under new leadership, Engadget reported. The cloud gaming changes are among those adjustments.

Separately, Fortune reported in a profile of Xbox CEO Asha Sharma that Microsoft has internally projected a $1,200 to $1,800 price for a next-generation console planned for the 2028 holiday season. The report, cited by Ars Technica and Slashdot, also described a dual release strategy for Microsoft gaming hardware, including a next-generation handheld device planned by the end of next year.

Microsoft announced its Project Helix gaming hardware in March, describing it as a device that will play Xbox and PC games. Fortune said the console price range was based on internal projections and could be lower for consumers if Microsoft decides to subsidize the cost, as console makers have done in the past.

The projected range would be historically high for the console market, even after adjusting for inflation, according to the report. It also reflects higher prices across gaming hardware: the Steam Machine has a starting price above $1,000, the PlayStation 5 Pro costs $900, and the six-year-old Xbox Series X starts at $750, Ars Technica reported. The report tied those levels to slower improvements under Moore's Law and AI-driven component shortages.