Microsoft has revealed that it has set up a new cloud gaming division. This is a crucial move that it has made rather quietly, a new cloud gaming division means that Microsoft may have plans to enter the game streaming space. According to the report, Microsoft has been building up to this with acquisitions of smaller companies such as PlayFab which was focused on game development in the cloud before it was picked up by the Redmond-based giant.

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Game streaming might still be a nascent market but there are players who have been able to make it work. Look no further than Sony’s PlayStation Now service while NVIDIA has made waves with its GeForce Now game streaming service as well, even though it’s not quite out of beta just yet.

The Verge reports that Microsoft already has a basic idea of what a cloud game streaming service would entail with Xbox Game Pass, the company’s Netflix-style subscription service that gives subscribers access to a library of more than 100 games for the Xbox One.

Microsoft is far from announcing a game streaming service at this point in time. The report only mentions that the wheels are in motion but it might be a while before there’s a formal announcement. Microsoft has only said that it’s looking at multiple ways to bring games to players on different devices but precisely when it intends to do that remains to be seen.

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