Microsoft has long been suspected to have been working on its own brand of cloud streaming technology for Xbox software, and the latest reports suggest they're making progress on that front.
Tech blog The Verge
writes that sources familiar with Microsoft's internal machinations describe a demonstration by company officials that showed Xbox 360 blockbuster Halo 4 running smoothly via network streaming on both a PC (presumably running Windows 8) and a Windows Phone device, specifically the 4" Nokia Lumia 520.
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.
According to The Verge report, Microsoft has narrowed the latency of streaming the game to the Lumia 520 down to only 45ms, but it does not specify the network conditions of that number.
Whether Microsoft has any plans to open up existing Xbox software to other platforms in this manner, or leverage it to offer backwards compatibility for Xbox 360 games on the Xbox One is unknown.