Xbox One isn't backwards compatible with 360 games, a fact that has led to PR mishaps. But playing 360 games on your Xbox One isn't completely out of the realm of possibility, as senior director Albert Penello says it could be done through the cloud.
"Yeah, absolutely," Penello said, when GameSpot asked if backwards compatibility through streaming was possible. "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... It could be more complicated things like rendering full games like a Gaikai and delivering it to the box. We just have to figure out how, over time, how much does that cost to deliver, how good is the experience."
With "the cloud" referring to any online distributed computing system, it's no surprise Microsoft says game streaming would possible. Every company can use the cloud. However, Sony has already heavily invested with its plans for cloud-based game streaming with its purchase of Gaikai. Streaming services will launch in early 2014 on PS4, with Vita and PS3 support to come in the future.