We understand that Microsoft is building the service as a way to  stream games to its Windows devices. Microsoft's demonstration included a  Windows Phone with a 
Xbox controller attached through an accessory, and a low-end hybrid PC.  Microsoft has not yet branded the cloud games service, and officials  stressed it was simply prototype at this stage. It appears to be an  answer to Sony's acquisition of Gaikai's streaming technology that the  company plans to use for PS3 and PS4 game streaming sometime in 2014.  
Microsoft has been gradually  building a cloud service for Xbox One games, but the company also hinted  that it may be able to stream older games to provide backwards  compatibility. Microsoft's senior director of Xbox, Albert Penello, said  "it could be more complicated things like rendering full games like a  Gaikai and delivering it to the box," in a recent interview with  Gamespot. "We just have to figure out how, over time, how much does that  cost to deliver, how good is the experience."  via 
 
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