Microsoft is working on a Netflix-style streaming service for video games. It promises "console-quality gaming to any device'.
The Redmond-based company claims players will be capable of streaming blockbuster movies to their Xbox, laptop or smartphone.
It's unclear if players will have to pay for the individual games, or be allowed to access the entire library for a monthly fee like video on-demand services.
Microsoft believes that streaming won't replace dedicated consoles completely However, the company teased that new Xbox hardware was in the development.
Microsoft is creating a Netflix-style streaming video service that will bring console-quality gaming to all devices. During its E3 presentation, Microsoft revealed 50 new games to gamers - a record for the company based in Redmond.
Phil Spencer, Xbox boss revealed the coming video game streaming service that he claimed will allow users to play console-quality games on any device.
Executive President of Gaming Phil Spencer revealed Microsoft's plans to launch a cloud-based service during its press conference at video game Expo E3 in Los Angeles.
Spencer stated that: "Our cloud engineers are creating a game streaming network that will allow console-quality gaming on all devices.
We are committed to enhancing your experience wherever you wish to play on - your Xbox, your PC and your smartphone.'
This method, also known as Cloud Gaming, allows players to access a vast library of games without the need to download or install each game.
Cloud gaming can allow console-quality video games to run on much less powerful devices, like smartphones, as all of the heavy-lifting is handled on servers, not the device used by the player.
This is very different from traditional video console games, which need to process all data on the disc locally, and therefore require powerful chipsets and fan systems.
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Xbox director Spencer didn't reveal an exact date for the launch of the service on-stage, although Spencer has teased previously that Microsoft's game streaming could be available in 2020.
The company isn't the first to express an interest in a streaming service for games as the rival PlayStation already offering players the chance to stream titles to their devices.
It's dubbed PlayStation Now, the subscription service costs PS12.99 ($20) per month. It allows users to stream more than 500 titles on their Sony PS4 or Windows PC.
After it purchased rival services Gaikai, OnLive, and Sony, Sony launched its cloud gaming platform.
Microsoft has not given up on its hardware plans, despite the focus on streaming videogames.
It is not clear whether users will have to pay for individual titles or whether they will be able to access the entire library at a monthly fee, similar to Netflix.
Microsoft has revealed plans to develop Xbox hardware with new consoles planned despite teasers of streaming services.
Xbox boss Phil Spencer remained tight-lipped on any specifics about the forthcoming console, however, the executive did reveal that backwards-compatibility with older video games would play significant role for the new hardware
Phil Spencer used the E3 keynote to announce the Xbox One's follow-up, and hints that Microsoft might have several new consoles under development.
The same team that produced an unprecedented performance with Xbox One X is deep into designing the next Xbox consoles, and we will once more fulfill our promise to set the standard for console gaming,' he said.
Spencer remained tight-lipped on any specifics about the console, however, the executive did reveal that backwards-compatibility with Xbox One games would play significant role for the new hardware.
He told Eurogamer: "As you think about the next generation of hardware that is going to be released, a lot of the massive, huge games people are playing today are still going to exist when the next hardware is released.
It's unlikely that you'll see an "2" after all those because people are trying to take you to the next version of these games. In the old model of games shipping through the system, being played and disappearing - which was the case for all games - a console change was an easy step-function.
"We played through it in Minecraft. We didn't launch Minecraft 2 on Xbox One to try to make everyone move to the next console, because that's not what Minecraft players want. They want Minecraft to improve.
"When you think of games like Fortnite or PUBG you think of the massive games and ecosystems that are coming out when new hardware is released players will want to play those games and it's going be important for us to support these games.
Microsoft announced a new game in its wildly popular Halo series named Halo Infinite, which will only be available to Xbox-branded consoles
In addition, Microsoft showcased a record 50 new games to gamers during its E3 presentation.
The company took the wraps off a variety of exclusive titles, including the latest entries in its Halo and Gears of War series.
Spencer branded the new games on the list as the company's "largest gaming portfolio ever'.
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