Microsoft had committed to regulatory changes as part of its $75.4 billion acquisition of Activision Blizzard, including modifications to cloud-gaming initiatives. The New York Times reported that Microsoft canceled plans for a dedicated Xbox controller designed specifically for cloud gaming.

However, a Microsoft spokesperson contradicted this claim. According to the statement provided, the company did not cancel the cloud gaming controller project. The existence and status of this controller device remain disputed between the reporting outlet and Microsoft's official position.

The regulatory commitments Microsoft made to secure approval for the Activision Blizzard deal have continued to surface over time, more than a year after the acquisition completed. Cloud gaming represents a significant strategic area for the company, and any hardware dedicated to this platform would represent a notable investment in the space.

The controller's fate appears unclear. Microsoft's denial of cancellation suggests the project continues in some form, though the company has not provided additional details about development timelines, features, or release plans. The gap between The New York Times' reporting and Microsoft's response leaves the actual status of the device in question.

This disagreement highlights ongoing scrutiny of Microsoft's cloud gaming strategy following its regulatory agreements. The company faces pressure to deliver on commitments made during the acquisition process while managing expectations around cloud gaming hardware and services.