While Google believes Stadia can outmatch the PlayStation and Xbox hardware, Microsoft wants Project xCloud to bring new players into the existing Xbox ecosystem.
Project xCloud will lower the entry cost for gamers who may only own a smartphone, and leverages the well-known Xbox catalogue to draw players with free games. The Project xCloud app is available on all Android devices, and Microsoft will launch the service on PC early next year. New users are being added to the service on a rolling basis.
As an added bonus, gamers who already own an Xbox can stream from their home console and access all the games they already own. Project xCloud is already a part of the Xbox Live network too, so players can use their existing profiles and save data as soon as they start streaming.
Microsoft's streaming technology is far from flawless, but Project xCloud is positioned as an alternative to console gaming, not a replacement. Gamers can continue to invest in Xbox as a platform and gradually explore Project xCloud as the service grows, without spending hundreds on streaming-only software that may become useless in a few years.
It's unclear how Microsoft will monetize Project xCloud, but the company said it will work in conjunction with other Xbox services. Microsoft has been steadily expanding Xbox Game Pass, a monthly subscription service offering hundreds of games, and its likely that Game Pass titles will eventually be available for streaming via xCloud.