Microsoft senior director Albert Penello said the cloud system, which the company has promoted since the Xbox One's unveiling in May, could provide a service similar to Sony's Gaikai.
"Yeah, absolutely," he said. "That's one of the things that makes [the cloud] at the same time both totally interesting and hard to describe to people. Because what the cloud can do is sort of hard to pin. WHen you say to the customer, 'we want the box to be connected, we ant developers to know that the cloud is there,' we're really not trying to make up some phony thing."
Sony has confirmed an "early 2014" launch of its Gaikai streaming system for North America, but has yet to give any specific details about its operation. Microsoft has not formally commented on the possibilities of backward compatibility at launch, however. Penello insists the possibilities of cloud gaming are endless.
The Xbox One will launch in 12 territories Nov. 22.