Microsoft is working on an online streaming video service that is Netflix-like for video games. It promises to deliver "console-quality gaming to any device'.
The company, based in Redmond, claims that players will be capable of streaming blockbuster movies to their Xbox, laptop or smartphone.
It is not clear if players will have to pay for individual games or if they will be able access the entire library for a monthly cost, such as video on-demand.
Microsoft doesn't believe streaming will replace dedicated consoles completely however, the company did announce that a new Xbox hardware was in the works.
Microsoft is developing a Netflix-style streaming service for video games that promises to provide 'console-quality gaming on any device'. Microsoft also revealed 50 new games for gamers during its E3 presentation, which is an all-time record for the Redmond-based company
Phil Spencer, Xbox boss, teased the future video game streaming service, which he said will allow gamers to play console-quality games on any device.
Microsoft's Executive Vice President of Gaming Phil Spencer spoke at the E3 press conference in Los Angeles to reveal its plans to build a cloud-based services.
Spencer said that: "Our cloud engineers are developing a game streaming network to stream console-quality gaming across all devices.
"We are committed to improving your experience wherever you play on your Xbox, your PC, and even on your mobile."
Cloud Gaming is a way players can have access to a large library of titles without needing to download or install each one.
Cloud gaming allows console-quality video games to run on less powerful devices, like smartphones, as all of the heavy lifting is handled by the server, not the device used by the user.
This is quite different from traditional video console games , which must process all data on the disk locally and thus require powerful chipsets.
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Spencer, Xbox boss, did not announce a date for the service's launch on stage. However, he has previously hinted that Microsoft's game streaming could be available by 2020.
Rival PlayStation isn't alone one that is interested in streaming games. Rival PlayStation also offers the option of streaming games to your devices.
PlayStation Now is a subscription service that costs PS12.99 ($20 per month) and allows players to stream over 500 titles on their PlayStation 4 or Windows PC.
After it purchased rival services Gaikai, OnLive, and Sony, Sony launched its cloud gaming platform.
But despite its focus on streaming video games, Microsoft has not abandoned its hardware plans.
It's not clear if users will need to pay to access specific titles, or if they will be able to access the entire library for a flat monthly fee, much like 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 reveal the follow-up to the Xbox One, with hints that Microsoft might have a variety of new consoles in the works.
The same team that delivered incredible performance with Xbox One X is deep into designing the next Xbox consoles, and we will once again deliver on our commitment to set the bar for console gaming,' he added.
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 this next generation of hardware that will eventually arrive, many of the huge, massive games we play today will continue to exist when the next hardware is released.
You're unlikely to see a "2" after all that games, since people are trying to get you to the next version of these games. In MINECRAFT SERVERS of games being shipped, getting played and then going away - and that was the way it was for all the games - a console transition was an easy 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 would like to see. They want Minecraft to be improved.
If you look at games like PUBG and Fortnite and think about these large games and ecosystems that'll be available, once new hardware comes, people are still going to want to play these games, and it's going to be important for us as platforms to be able to support them.'
Microsoft unveiled a new entry in its wildly popular Halo series, dubbed Halo Infinite, which will be exclusive to Xbox consoles
Additionally, Microsoft showcased a record 50 new games to gamers during its E3 presentation.
The company took the wraps off of a selection of exclusive titles, including brand new entries in its Halo and Gears of War series.
Spencer identified the list of games coming out as the company's 'most diverse gaming portfolio ever'.