It works surprisingly well to play Xbox Cloud Gaming, often with none or barely noticeable lag. And thanks to that, you can play huge parts of the Xbox Game Pass library on your smartphone with almost any major Bluetooth controller (regular Xbox Series controller is perhaps the easiest way to go). But not everything is smooth sailing.
So far, regular Xbox Cloud Gaming has been restricted to 720p, which is a resolution that was impressive during the Xbox 360 era. Also, by smartphones, we mean Android as Apple still doesn't allow game streaming apps. Fortunately, this is about to be remedied.
Microsoft has previously said that Xbox Game Streaming is coming to iOS as a browser based solution (same route as Google Stadia went) this year, and now Windows Central reports that Microsoft is currently testing 1080p resolution, which is the most common for smartphones. They have got picture proof from their own sources that this is in fact taking place.
As Xbox Game Streaming is also coming for PC this year, 720p would have looked very blurry on most standard PC monitors, so a boost to 1080p is certainly welcome and needed. The upcoming streaming service Amazon Luna is also supporting 1080p, as does Google Stadia (which also offers 4K if you have a Stadia Pro subscription).
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