diff --git a/src/d3d9/d3d9_cursor.cpp b/src/d3d9/d3d9_cursor.cpp
index ac79ecfa879..cff32e58d1a 100644
--- a/src/d3d9/d3d9_cursor.cpp
+++ b/src/d3d9/d3d9_cursor.cpp
@@ -41,8 +41,8 @@ namespace dxvk {
     POINT currentPos = { };
     ::GetCursorPos(&currentPos);
 
-    m_sCursor.X = static_cast<UINT>(currentPos.x);
-    m_sCursor.Y = static_cast<UINT>(currentPos.y);
+    m_sCursor.X = static_cast<int32_t>(currentPos.x) - m_sCursor.XHotSpot;
+    m_sCursor.Y = static_cast<int32_t>(currentPos.y) - m_sCursor.YHotSpot;
   }
 
 
@@ -97,8 +97,8 @@ namespace dxvk {
 
     m_sCursor.Width       = Width;
     m_sCursor.Height      = Height;
-    m_sCursor.X           = XHotSpot;
-    m_sCursor.Y           = YHotSpot;
+    m_sCursor.XHotSpot    = XHotSpot;
+    m_sCursor.YHotSpot    = YHotSpot;
     m_sCursor.ResetCursor = false;
 
     ShowCursor(m_visible);
diff --git a/src/d3d9/d3d9_cursor.h b/src/d3d9/d3d9_cursor.h
index af96884bea9..c45338d4394 100644
--- a/src/d3d9/d3d9_cursor.h
+++ b/src/d3d9/d3d9_cursor.h
@@ -10,8 +10,10 @@ namespace dxvk {
   struct D3D9_SOFTWARE_CURSOR {
     UINT Width  = 0;
     UINT Height = 0;
-    UINT X = 0;
-    UINT Y = 0;
+    UINT XHotSpot = 0;
+    UINT YHotSpot = 0;
+    int32_t X = 0;
+    int32_t Y = 0;
     bool DrawCursor  = false;
     bool ResetCursor = false;
   };
diff --git a/src/d3d9/d3d9_device.cpp b/src/d3d9/d3d9_device.cpp
index 459d40294b6..67b4d9bdfbd 100644
--- a/src/d3d9/d3d9_device.cpp
+++ b/src/d3d9/d3d9_device.cpp
@@ -350,6 +350,11 @@ namespace dxvk {
      || (inputHeight && (inputHeight & (inputHeight - 1))))
       return D3DERR_INVALIDCALL;
 
+    // It makes no sense to have a hotspot outside of the bitmap.
+    if (XHotSpot > std::max(inputWidth  - 1, 0u)
+     || YHotSpot > std::max(inputHeight - 1, 0u))
+      return D3DERR_INVALIDCALL;
+
     D3DPRESENT_PARAMETERS params;
     m_implicitSwapchain->GetPresentParameters(&params);
 
@@ -387,55 +392,17 @@ namespace dxvk {
       // Set this as our cursor.
       return m_cursor.SetHardwareCursor(XHotSpot, YHotSpot, bitmap);
     } else {
-      // The cursor bitmap passed by the application has the potential
-      // to not be clipped to the correct dimensions, so we need to
-      // discard any transparent edges and keep only a tight rectangle
-      // bounded by the cursor's visible edge pixels
-      uint32_t leftEdge   = inputWidth * HardwareCursorFormatSize;
-      uint32_t topEdge    = inputHeight;
-      uint32_t rightEdge  = 0;
-      uint32_t bottomEdge = 0;
-
-      uint32_t rowPitch = inputWidth * HardwareCursorFormatSize;
-
-      for (uint32_t h = 0; h < inputHeight; h++) {
-        uint32_t rowOffset = h * rowPitch;
-        for (uint32_t w = 0; w < rowPitch; w += HardwareCursorFormatSize) {
-          // Examine only pixels with non-zero alpha
-          if (data[rowOffset + w + 3] != 0) {
-            if (leftEdge > w) leftEdge = w;
-            if (topEdge > h) topEdge = h;
-            if (rightEdge < w) rightEdge = w;
-            if (bottomEdge < h) bottomEdge = h;
-          }
-        }
-      }
-      leftEdge  /= HardwareCursorFormatSize;
-      rightEdge /= HardwareCursorFormatSize;
-
-      if (leftEdge > rightEdge || topEdge > bottomEdge) {
-        UnlockImage(cursorTex, 0, 0);
-
-        return D3DERR_INVALIDCALL;
-      }
-
-      // Calculate clipped bitmap dimensions
-      uint32_t clippedInputWidth  = rightEdge  + 1 - leftEdge + 1;
-      uint32_t clippedInputHeight = bottomEdge + 1 - topEdge  + 1;
-      // Windows works with a stride of 128, lets respect that.
-      uint32_t clippedCopyPitch = clippedInputWidth * HardwareCursorFormatSize;
-
-      std::vector<uint8_t> clippedBitmap(clippedInputHeight * clippedCopyPitch, 0);
+      size_t copyPitch = inputWidth * HardwareCursorFormatSize;
+      std::vector<uint8_t> bitmap(inputHeight * copyPitch, 0);
 
-      for (uint32_t h = 0; h < clippedInputHeight; h++)
-        std::memcpy(&clippedBitmap[h * clippedCopyPitch],
-                    &data[(h + topEdge) * lockedBox.RowPitch + leftEdge * HardwareCursorFormatSize], clippedCopyPitch);
+      for (uint32_t h = 0; h < inputHeight; h++)
+        std::memcpy(&bitmap[h * copyPitch], &data[h * lockedBox.RowPitch], copyPitch);
 
       UnlockImage(cursorTex, 0, 0);
 
-      m_implicitSwapchain->SetCursorTexture(clippedInputWidth, clippedInputHeight, &clippedBitmap[0]);
+      m_implicitSwapchain->SetCursorTexture(inputWidth, inputHeight, &bitmap[0]);
 
-      return m_cursor.SetSoftwareCursor(clippedInputWidth, clippedInputHeight, XHotSpot, YHotSpot);
+      return m_cursor.SetSoftwareCursor(inputWidth, inputHeight, XHotSpot, YHotSpot);
     }
 
     return D3D_OK;
@@ -3929,6 +3896,8 @@ namespace dxvk {
       if (unlikely(pSoftwareCursor->ResetCursor)) {
         pSoftwareCursor->Width = 0;
         pSoftwareCursor->Height = 0;
+        pSoftwareCursor->XHotSpot = 0;
+        pSoftwareCursor->YHotSpot = 0;
         pSoftwareCursor->X = 0;
         pSoftwareCursor->Y = 0;
         pSoftwareCursor->ResetCursor = false;
diff --git a/src/d3d9/d3d9_swapchain.cpp b/src/d3d9/d3d9_swapchain.cpp
index e9beb030b4a..749fb6ba5e0 100644
--- a/src/d3d9/d3d9_swapchain.cpp
+++ b/src/d3d9/d3d9_swapchain.cpp
@@ -758,8 +758,8 @@ namespace dxvk {
   }
 
 
-  void D3D9SwapChainEx::SetCursorPosition(UINT X, UINT Y, UINT Width, UINT Height) {
-      VkOffset2D cursorPosition = { int32_t(X), int32_t(Y) };
+  void D3D9SwapChainEx::SetCursorPosition(int32_t X, int32_t Y, UINT Width, UINT Height) {
+      VkOffset2D cursorPosition = { X, Y };
       VkExtent2D cursorSize     = { uint32_t(Width), uint32_t(Height) };
 
       VkRect2D   cursorRect     = { cursorPosition, cursorSize };
diff --git a/src/d3d9/d3d9_swapchain.h b/src/d3d9/d3d9_swapchain.h
index b28f3232569..e26a97a38f7 100644
--- a/src/d3d9/d3d9_swapchain.h
+++ b/src/d3d9/d3d9_swapchain.h
@@ -120,7 +120,7 @@ namespace dxvk {
 
     void SetCursorTexture(UINT Width, UINT Height, uint8_t* pCursorBitmap);
 
-    void SetCursorPosition(UINT X, UINT Y, UINT Width, UINT Height);
+    void SetCursorPosition(int32_t X, int32_t Y, UINT Width, UINT Height);
 
     HRESULT SetDialogBoxMode(bool bEnableDialogs);