In July 2021, Microsoft CEO Satya Nadella emailed Xbox head Phil Spencer, head of cloud gaming Kareem Choudhry, and Sarah Bond, head of Xbox creator experience, following rumors that Google would convert Stadia as a cloud gaming service and developers could run their games there.
“They seem to have a head start because their infrastructure is more generic Linux VMs + Network in nature… But I guess we’ll do the same with Game Pass PC – right?”, asked Nadella. Spencer was very quick to respond confirming the fact that Microsoft is preparing a similar solution through Azure.
“Google has the ability to reuse Linux cloud hardware, and yes, as we stream native PC games from an Azure GPU SKU, we’ll have more reuse scenarios to amortize the cost,” Spencer said, referring to the ability to offer a similar clod gaming service to developers and publishers”.
“Phil is right. Sarah (Bond) and I, working with Jason’s (Zander) team are creating a proper Azure SKU… as part of a series that will serve the customer demand we’re seeing externally for IAAS and to support xCloud PC streaming,” Choudhry added. Part of Azure’s SKU is redacted in the court document, but it’s clear that Microsoft was working on cloud streaming of PC games in July 2021.