http://www.ign.com/articles/2013/09/27/microsoft-reportedly-developing-cloud-gaming-service?abthid=5245b74814b994ca72000008
Not to be left in the dust, Microsoft is reportedly in the process of developing its very own cloud gaming service that would allow it to stream games over the Internet to various devices.
The Verge reports the service was demonstrated internally at Microsoft this week using Halo 4. The Xbox 360 FPS was shown running on a PC and a Windows Phone (connected to an Xbox 360 controller), and was said to be running "smoothly" on both. Latency on a Lumia 520 -- a low-end Windows Phone 8 device from recent Microsoft acquisition Nokia -- is a mere 45ms, according to sources.
The purpose of the service, which is currently only a prototype and without an official name, would be to stream games to Windows devices. It could also be used to provide the backwards compatibility on Xbox One that Microsoft recently talked about potentially offering.