Microsoft showed off a new games streaming service at an internal meeting this week, according to anonymous reports, showing off Xbox 360 games played on PC and mobile.
Anonymous sources speaking to The Verge said Microsoft demonstrated Halo 4 streamed from the cloud to a low-end PC and a Windows Phone device with an Xbox controller attached via a peripheral.
The service is intended to allow Microsoft to stream games to Windows devices, the report claimed, but has not yet named the prototype system.
Sources said the streaming was smooth, with latency to a Lumia 520 at just 45ms.
Microsoft is yet to respond to requests for comment.
If the report is accurate, and Microsoft brings the streaming product to market, it would have two interesting ramifications. It would answer Sony's Gaikai streaming plans for PlayStation 3 and PS4, and it could provide some kind of Xbox One backwards compatibility with Xbox 360.