Microsoft is building a streaming service that resembles Netflix for video games that promises to bring console-quality gaming to any device'.
Redmond-based company claims that players will be able to stream blockbuster movies to their Xbox, laptop, or mobile.
It's not clear if players will be required to pay to play individual games, or be capable of accessing the entire library for a monthly cost like video on-demand services.
Microsoft does not believe that streaming will replace dedicated consoles completely Microsoft is also hinting that a new Xbox hardware is already in the works.
Microsoft is developing a streaming service that resembles Netflix for video games that will bring 'console-quality gaming to any device'. During its E3 presentation, Microsoft unveiled 50 new games to fans - a record for the company based in Redmond.
Xbox boss Phil Spencer also teased the coming streaming video games service, which Spencer claims will be able to 'unlock console-quality gaming for any device'
Executive President of Gaming Phil Spencer revealed Microsoft's plans to develop an online service during its press conference during the video game expo E3 in Los Angeles.
Spencer said: 'Our cloud engineers are building a game streaming network to allow console-quality gaming to any device.
We are committed to enhancing your experience wherever you wish to play - on your Xbox or PC, as well as your phone.'
This approach, known as Cloud Gaming, allows players to access a huge library of titles without the need to download or install every game.
Cloud gaming can allow console-quality video games to run on less powerful devices, like smartphones, as all of the heavy-lifting is handled on a server, not by the device that is used by the player.
This is quite different from traditional video console games, that have to process all the data on the disc locally and therefore require powerful chipsets and fan systems.
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Spencer, Xbox boss, did not announce the date of the launch of the service on stage. However, he has previously hinted that Microsoft's game streaming might be available before 2020.
Rival PlayStation isn't alone one to be interested in streaming games. Rival PlayStation also offers the option of streaming games to your devices.
It's dubbed PlayStation Now, the subscription service costs PS12.99 ($20) a month. Minecraft Servers allows users to stream more than 500 titles on their Sony PS4 or Windows PC.
After it bought rival services Gaikai, OnLive, and Sony, Sony launched its cloud gaming platform.
Microsoft has not abandoned its hardware plans, despite its primary focus being on streaming videogames.
It is not clear if users will have to pay for individual titles or the possibility of being able to access the entire library for a single monthly fee, similar to Netflix.
But despite teasing a streaming service, Microsoft revealed plans to continue to build Xbox hardware, with new 'consoles' already in the works
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 tease the Xbox One's follow-up and also hinted that Microsoft might have several new consoles under development.
He also said that the same team that provided an unbeatable performance with Xbox One X was deep into the design of the next Xbox consoles. This will allow them to once again keep their promise to console gaming.
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.
Eurogamer was told by him: "When you think about the next wave of hardware, a lot the large, big games that people are currently playing will still exist when the next hardware comes out."
You won't see the number "2" at the end of all these games because they are trying to guide you to the next version. In the old model of games shipping through the system, being played and going away - and that was the case for all games - a console change was a simple step-function.
"We went through it in Minecraft. We didn't release Minecraft 2 on Xbox One to force everyone to upgrade to the next console. That's not what Minecraft users want. They want Minecraft to be improved.
When you think about games like PUBG and Fortnite and think about these massive ecosystems and games that will be available, once new hardware comes, people will continue to want to play those games, and it's going to be important for us as platforms to help them.'
Microsoft announced a new game in its popular Halo series, dubbed Halo Infinite and will only be available to Xbox-branded consoles
Microsoft also presented a record number of brand new games to its players during its E3 presentation.
The company released a selection of exclusive titles, including fresh additions to its Halo and Gears of War series.
Spencer branded the new games on the list as the company's 'most diverse gaming portfolio ever'.
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