Microsoft Canceled Its Cloud Gaming Controller, Report Says

Microsoft has canceled plans for a dedicated Xbox cloud gaming controller, according to a report from The New York Times. A Microsoft spokesperson confirmed the controller concept was abandoned but denied it resulted from regulatory scrutiny tied to the company's $75.4 billion Activision Blizzard acquisition.

Microsoft never formally announced the controller, though a leaked image circulated online this year showing its distinctive design. The company faced regulatory pressure from the UK's Competition & Markets Authority during the Activision deal approval process, which prompted Microsoft to make concessions around its cloud gaming strategy.

Those commitments included partnerships with multiple cloud gaming providers: Ubisoft, Nware, EE, Boosteroid, Ubitus, and Nvidia. Former Xbox CEO Phil Spencer said the deals addressed CMA concerns about preferential treatment and expanded game availability across networks.

Xbox cloud gaming remains accessible through Xbox Game Pass Ultimate. The service recently hit headwinds, including Microsoft's announcement of usage limits and higher pricing for continued access. A dedicated Samsung TV app for cloud gaming will also be discontinued due to compatibility issues. Later this year, players will be able to purchase cloud gaming time separately from Game Pass.

The controller's cancellation comes as Xbox faces broader challenges. CEO Asha Sharma recently stated the division is "not for sale," following speculation about Microsoft potentially divesting the struggling business.