Microsoft is testing a new Xbox Cloud Gaming feature that could allow players to use their smartphones as virtual controllers when gaming on supported smart TVs.

The feature would support both Android phones and iPhones and is part of two new Xbox Cloud Gaming preview programmes. It allows games to run directly on a TV while players use their phone’s touchscreen to control the action.

Microsoft is moving towards a model where access to games and subscriptions is more important than owning a gaming device, and the strategic opportunity has the potential to be much bigger than controller sales for the company. 

How It Works

According to Microsoft, the virtual controller operates through a smartphone’s web browser, so there is no need for players to download a specific app to be able to use the feature. Some games will also feature customised touchscreen controls designed around their gameplay mechanics.

Getting started sounds straightforward. Players enable Preview Features under Settings and Account in the Xbox app on a supported smart TV. After launching a game without a physical controller connected, users will then be presented with the option to use their smartphone instead.

Players use their phone to scan the QR code that appears on the TV screen, connect their device and begin playing.

Cloud Gaming Growth Potential 

From a company perspective, cloud gaming has the potential to give Microsoft an avenue for growth without having to sell every player a console. 

Microsoft’s FY2026 third-quarter results reported a 33% decline in Xbox hardware revenue, driven by lower console sales volumes.

Aside from hardware, revenue can be generated from Game Pass subscriptions, cloud gaming subscriptions and use, digital games, in-game purchases and downloadable content, and smart TV company partnerships. 

The development could make Xbox Cloud Gaming more accessible, particularly for casual players who want to enjoy games on their television without purchasing additional hardware.

It also gives Microsoft a potential advantage over Sony’s current approach to smartphone gaming controls. While Sony offers virtual controls through its PS Remote Play app, the experience involves streaming games directly to a phone. Its official app does not offer the same option of using a smartphone as a controller while continuing to play on a television.

Microsoft is also testing another feature called Cloud Connect, which is designed for its new Xbox Nano Controller.

Rather than connecting to a TV via Bluetooth, the Nano Controller communicates directly with Microsoft’s cloud gaming servers over Wi-Fi. The approach could help reduce input lag, although the preview is currently restricted to the US and selected smart TVs and browsers.

The smartphone controller feature has a broader rollout, covering countries where Xbox Cloud Gaming is available. However, compatibility remains limited and not every smart TV or game is currently supported.

Microsoft has yet to announce when either feature will become widely available.