Microsoft is developing a Netflix-style streaming service for video games that promises to bring 'console-quality gaming to any device'.
The Redmond-based company claims that gamers will be able stream blockbuster films to their Xbox laptop, computer, or smartphone.
It's unclear if players will need to pay for the specific games, or be able to access the entire library for a monthly fee, like video on-demand services.
Microsoft believes that streaming won't replace dedicated consoles completely, but the company teased that a new Xbox hardware was in the in the works.
Microsoft is creating an online video game streaming service that will bring console-quality gaming to all devices. The firm also announced 50 new games to fans during its E3 presentation, setting a new record for the Redmond-based firm.
Xbox boss Phil Spencer also teased the new video game streaming service, which he claims will be able to 'unlock console-quality gaming on any device'
Executive President of Gaming Phil Spencer revealed Microsoft's plans to launch 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 unlock console-quality gaming on any device.
"We are determined to improve your experience wherever you play - on your Xbox, your PC, and even your mobile."
Cloud Gaming is a way for players to have access to a vast library of titles without needing to download or install each one.
Cloud gaming allows console-quality games to run on devices with less power, such as smartphones. All the heavy lifting is done on a server , not on the device being used by the player.
This is quite different from traditional console games, which need to process all the data on the disc locally and therefore require powerful chipsets as well as fan systems.
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Xbox director Spencer hasn't revealed the date of launch for the service in his keynote, however Spencer has previously hinted that Microsoft's game streaming could be available in 2020.
The company is not the only one to have shown an interest in a streaming service for games as the rival PlayStation already offering gamers the possibility of streaming games to their devices.
The service is dubbed PlayStation Now, the subscription service costs PS12.99 ($20) per month. It lets users stream more than 500 titles to their Sony PS4 or Windows PC.
After it acquired rival services Gaikai, OnLive, and Sony, Sony launched its cloud gaming platform.
However, despite its primary 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 play the entire library for a flat monthly fee, like Netflix
Microsoft has announced plans to create 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 as a teaser for the Xbox One's follow-up and suggested that Microsoft might have several new consoles under development.
'The same team that delivered unprecedented performance with Xbox One X is now deep into the design of the next Xbox consoles, and we will keep our promise 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.
Eurogamer was told by him: "When you think about the next generation of hardware, a lot the large, big games that people are currently playing will still exist when the next hardware comes out."
You're unlikely to see a "2" after all of those, as people are trying to move you to the next version of the games. In the old model of games shipping, getting played and then being removed - and that was the way it was for all the games - a console switch was a simple step-function.
"We went through it in Minecraft. We didn't launch Minecraft 2 on Xbox One to force everyone to upgrade to the next console. That's not what Minecraft players would like to see. https://boasted.co/ want Minecraft to improve.
When you think about games like PUBG and Fortnite and think about these massive ecosystems and games that will be available, when new hardware is released, players are still going to be interested in playing these games, and it's going to be crucial for us as platforms to support them.'
Microsoft has unveiled a brand new entry in its popular Halo series, dubbed Halo Infinite that will only be available to Xbox-branded consoles
Microsoft also showed an unprecedented number of new games to its players during its E3 presentation.
The company took the wraps off a range of exclusive titles, including brand new entries in its Halo and Gears of War series.
Spencer has described the company's "most diverse gaming portfolio" as the latest list of games.