The huge challenges Microsoft faces with 'XCloud' Xbox game streaming

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Dec 17, 2013
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Phil Spencer announces Xbox game streaming.
Microsoft's "XCloud" game streaming service has been in development for years, but Redmond still faces an uphill battle to turn it into a compelling product.
At E3 2018, Microsoft gaming lead Phil Spencer talked about bringing "console quality" Xbox game streaming to your devices, flanked by a large picture of a smartphone. Microsoft's current aims revolve around expanding the company's gaming reach beyond the Xbox console market, which seems to have effectively plateaued in recent years.
With game streaming, rumoured to be code named "XCloud," Microsoft aims to deliver your games to any device, streaming from the internet. Games will offload expensive processing routines to external servers, sending the visual results to your devices, whether it's via a streaming stick connected to a TV, or the low-powered smartphone in your pocket.
Microsoft has been working on these systems for years, all the way back in the Xbox 360 era, where they reportedly demonstrated Halo 4 streaming to a Lumia handset, via the cloud. Several years later, though, Microsoft faces the same issues turning these promising features into a tangible product that it faced many years ago. I have no idea if Microsoft will succeed with XCloud, but they're far better placed than some of the other companies out there attempting similar things.
Here are some of the challenges Microsoft needs to overcome with its game streaming service.

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