Rumor: Microsoft building a game streaming service codenamed ‘Arcadia’

Microsoft is rumored to be building out a game streaming service codenamed “Arcadia”, according to a report from ZD Net.

The report suggests that Microsoft’s game streaming initiative will utilize the Azure Cloud to stream gaming content to users. Being that this is a wholly unconfirmed rumor at this point, the future uses of this are streaming technology are entirely unknown.

Though it would make a lot of sense for Microsoft to be pushing into this area, as their major competitor in the gaming space, Sony, has recently rolled out their PlayStation Now streaming service. Microsoft game streaming could introduce backwards compatibility features between the Xbox One and Xbox 360, but nobody should be holding their breath waiting for Microsoft to allow them to access games that they previously owned on the new console.

Game streaming hasn’t exactly been well received to this point. Users who’ve tested services like OnLive and PlayStation Now report that while the technology is certainly getting there, latency and other issues crop up regularly enough to remind you that it still has a ways to go before being a viable alternative to playing a game from storage. Game streaming is currently only a sufficient option for those with exceptionally high bandwidth internet connections.

We’ll have to wait and see if this rumor ends up panning out, but Xbox head Phil Spencer recently alluded to the company readying a reveal of their plans for the future of PC gaming on Windows 10.