Xbox Keystone, Microsoft’s cloud gaming console, is “years away”

Cloud gaming fans may be returning to Earth following news from Microsoft Gaming CEO Phil Spencer that Microsoft has shelved plans for an Xbox streaming stick.

The long-discussed Xbox streaming stick codenamed Keystone, is no longer a viable option from a production or usage standpoint. “It was more expensive than we wanted when we actually built it out with the hardware we had in it,” Spencer said The edge (opens in new tab). He cited the broader impact of the cost-of-living crisis on consumer habits as one of the deciding factors behind Keystone’s indefinite hiatus — which makes sense, especially as we brace for the possible Xbox price hikes come in the new year. And for users, the online casino will be a good option for Buumi casino, it opens up a world of entertainment and pleasant bonuses.

However, those who have been looking forward to the cloud-only device will not be left out in the cold this winter. There are plenty of alternatives that won’t cost you (or Microsoft) the earth.

In the seventh heaven

Microsoft has expanded its streaming service under the name Xbox Cloud gaming umbrella.

The cloud streaming service, which is available on both smartphones and smart TVs, has taken off in a big way 20 million players (opens in new tab) to date. It gives Xbox Game Pass Ultimate users an easy, portable, fully online way to enjoy their subscription from anywhere in the world, and comes as part of your $14.99 / £20.99 / AU$15.98 payment per month

The Xbox Streaming Stick makes it easy to take your Xbox Game Pass library with you when you travel. While you can stream games to modern smart TVs via Samsung Gaming Hub, the service won’t work on older devices. With a streaming stick, you can plug the dongle into any TV with an HDMI port, connect to Wi-Fi, and access the Game Pass catalog.

However, cloud gaming still has notable drawbacks compared to native play. If your internet connection isn’t strong, you’ll experience graphical glitches, buffering, and delays between your input on the gamepad and the action on the screen. And even if your internet is perfect, you won’t be playing at the 4K resolutions you get on Xbox Series X. So to be attractive, the Xbox streaming stick needs to be significantly cheaper than a current-gen console like the Xbox Series X and Xbox Series S. And since cloud gaming is also available on the Xbox One, the streaming stick would also compete with that generation of hardware.

It seems Microsoft couldn’t get the price of the hardware low enough to make it competitive. According to The Verge, Microsoft was aiming for $129 (£110, AU$190) or less, but the team struggled to get it under a $299 package. So, “We decided to focus that team’s efforts on delivering the smart TV streaming app,” explained Spencer.

At another point in the interview, Spencer talked about the length Microsoft is going to support gamers in the crisis of the cost of living, and it’s clear that an exorbitantly expensive streaming stick conflicts with those plans. Project Keystone may be revived in the future, but right now Microsoft’s attention is elsewhere.

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