Microsoft is building a Netflix-style streaming service for video games. The service promises to bring 'console-quality gaming to any device'.
The company, based in Redmond, claims that players will be able to stream blockbuster titles to their Xbox smartphone, laptop or computer.
It is unclear whether players will be required to pay for each game or whether they will be able to access the entire library for a monthly cost, such as video on-demand.
Microsoft does not believe that streaming will replace dedicated consoles in the end however, the company did announce that new Xbox hardware was in the in the works.
Microsoft is creating a Netflix-style streaming video game service that will bring console-quality gaming to all devices. In its E3 presentation, Microsoft unveiled 50 new games to gamers - a record for the Redmond-based company.
Phil Spencer, Xbox boss, teased the future video game streaming service that 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 create a cloud-based service.
Spencer said: 'Our cloud engineers are creating an online gaming network that will unlock console-quality gaming on any device.
'We are dedicated to perfecting your experience wherever you wish to play - your Xbox, your PC and your smartphone.'
Cloud Gaming is a way for players to have access to a huge collection of games without having to download or install each one.
Cloud gaming lets console-quality games to run on less powerful devices like smartphones. All the heavy lifting is done via a server and not on the device being used by the player.
This is very different than traditional video console games , which require processing everything locally on the disk and thus require powerful chipsets.
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Xbox director Spencer hasn't revealed an exact date for the launch of the service on-stage, although Spencer has teased previously that Microsoft's game streaming could be launched in 2020.
The company is not the only one to have shown an interest in a service that streams games and its the rival PlayStation already offering players the possibility of streaming games to their devices.
The service is dubbed PlayStation Now, the subscription service costs PS12.99 ($20) a month. It lets users stream more than 500 titles to their Sony PS4 or Windows PC.
After it bought rival services Gaikai, OnLive, and Sony, Sony launched its cloud gaming platform.
However, despite its focus on video game streaming, Microsoft has not abandoned its hardware plans.
It's unclear whether players will have 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 revealed plans to create Xbox hardware, with new consoles in the works 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 sequel 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 currently deep into the design of the next Xbox consoles, where we will once more deliver on our commitment to set the standard 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 wave of hardware, a lot the big, massive games people are currently playing will still be in play when the next hardware arrives."
You're unlikely to see a "2" after all that because people are trying to take you to the next version of these games. In the old model of games shipping - getting played and then moving away - a console switch was a simple step-function.
"We went through it in Minecraft. We didn't ship Minecraft 2 on Xbox One to try to force everyone to switch to the next console because this isn't what Minecraft players want. They just want Minecraft to get better.
"When you think of games like Fortnite or PUBG you think of the large games and ecosystems that are coming out when new hardware comes out the players will continue to play these games, and it's going be important for us to support them.
Microsoft has unveiled Halo Infinite which is a brand new installment in the popular Halo series. This will only be available on Xbox-branded consoles.
Microsoft also showed an unprecedented amount of new games for its fans during its E3 presentation.
The company ripped the wraps off of a selection of exclusive titles, including brand new entries in its Halo and Gears of War series.
Spencer spoke of the company's "most diverse gaming portfolio" as the new list of games.