diff --git a/src/d3d9/d3d9_cursor.cpp b/src/d3d9/d3d9_cursor.cpp
index cff32e58d..9535e46c7 100644
--- a/src/d3d9/d3d9_cursor.cpp
+++ b/src/d3d9/d3d9_cursor.cpp
@@ -29,6 +29,15 @@ namespace dxvk {
 
 
   void D3D9Cursor::UpdateCursor(int X, int Y) {
+    // SetCursorPosition is used to directly update the position of software cursors,
+    // but keep track of the cursor position even when using hardware cursors, in order
+    // to ensure a smooth transition/overlap from one type to the other.
+    m_sCursor.X = X;
+    m_sCursor.Y = Y;
+
+    if (unlikely(m_sCursor.Width > 0 && m_sCursor.Height > 0))
+      return;
+
     POINT currentPos = { };
     if (::GetCursorPos(&currentPos) && currentPos == POINT{ X, Y })
         return;
@@ -37,15 +46,6 @@ namespace dxvk {
   }
 
 
-  void D3D9Cursor::RefreshSoftwareCursorPosition() {
-    POINT currentPos = { };
-    ::GetCursorPos(&currentPos);
-
-    m_sCursor.X = static_cast<int32_t>(currentPos.x) - m_sCursor.XHotSpot;
-    m_sCursor.Y = static_cast<int32_t>(currentPos.y) - m_sCursor.YHotSpot;
-  }
-
-
   BOOL D3D9Cursor::ShowCursor(BOOL bShow) {
     // Cursor visibility remains unchanged (typically FALSE) if the cursor isn't set.
     if (unlikely(m_hCursor == nullptr && !IsSoftwareCursor()))
@@ -127,11 +127,6 @@ namespace dxvk {
   }
 
 
-  void D3D9Cursor::RefreshSoftwareCursorPosition() {
-    Logger::warn("D3D9Cursor::RefreshSoftwareCursorPosition: Not supported on current platform.");
-  }
-
-
   BOOL D3D9Cursor::ShowCursor(BOOL bShow) {
     Logger::warn("D3D9Cursor::ShowCursor: Not supported on current platform.");
     return std::exchange(m_visible, bShow);
diff --git a/src/d3d9/d3d9_cursor.h b/src/d3d9/d3d9_cursor.h
index c45338d43..4da6354dd 100644
--- a/src/d3d9/d3d9_cursor.h
+++ b/src/d3d9/d3d9_cursor.h
@@ -47,8 +47,6 @@ namespace dxvk {
 
     void UpdateCursor(int X, int Y);
 
-    void RefreshSoftwareCursorPosition();
-
     BOOL ShowCursor(BOOL bShow);
 
     HRESULT SetHardwareCursor(UINT XHotSpot, UINT YHotSpot, const CursorBitmap& bitmap);
diff --git a/src/d3d9/d3d9_device.cpp b/src/d3d9/d3d9_device.cpp
index 340f6f39c..bea0e9201 100644
--- a/src/d3d9/d3d9_device.cpp
+++ b/src/d3d9/d3d9_device.cpp
@@ -4052,14 +4052,13 @@ namespace dxvk {
           DWORD dwFlags) {
 
     if (m_cursor.IsSoftwareCursor()) {
-      m_cursor.RefreshSoftwareCursorPosition();
-
       D3D9_SOFTWARE_CURSOR* pSoftwareCursor = m_cursor.GetSoftwareCursor();
 
       UINT cursorWidth  = pSoftwareCursor->DrawCursor ? pSoftwareCursor->Width : 0;
       UINT cursorHeight = pSoftwareCursor->DrawCursor ? pSoftwareCursor->Height : 0;
 
-      m_implicitSwapchain->SetCursorPosition(pSoftwareCursor->X, pSoftwareCursor->Y,
+      m_implicitSwapchain->SetCursorPosition(pSoftwareCursor->X - pSoftwareCursor->XHotSpot,
+                                             pSoftwareCursor->Y - pSoftwareCursor->YHotSpot,
                                              cursorWidth, cursorHeight);
 
       // Once a hardware cursor has been set or the device has been reset,
@@ -4070,8 +4069,6 @@ namespace dxvk {
         pSoftwareCursor->Height = 0;
         pSoftwareCursor->XHotSpot = 0;
         pSoftwareCursor->YHotSpot = 0;
-        pSoftwareCursor->X = 0;
-        pSoftwareCursor->Y = 0;
         pSoftwareCursor->ResetCursor = false;
       }
     }