Many believe the future of gaming lies in the cloud, namely Cloud Gaming, which renders an interactive gaming application in the cloud and streams the scenes as a video sequence to the player over Internet. This paper proposes GCloud, a GPU/CPU hybrid cluster for cloud gaming based on the user-level virtualization technology. Specially, we present a performance model to analyze the server-capacity and games’ resource-consumptions, which categorizes games into two types: CPU-critical and memory-of-critical. Consequently, several scheduling strategies have been proposed to improve the resource-utilization and compared with others. Simulation tests show that both of the First-Fit-like and the Best-Fit-like strategies outperform the other(s); especially they are near optimal in the batch processing mode. Other test results indicate that GCloud is efficient: An off-the-shelf PC can support five high-end video-games run at the same time. In addition, the average per-frame processing delay is 8~19 ms under different image-resolutions, which outperforms other similar solutions.