Microsoft was apparently trying to "figure out" how to deliver cloud-based games across multiple devices, going so far as demoing Halo 4 (an Xbox 360 game) running on PC and Windows Phone. However, it appears the company considers it too "problematic" to deploy--largely due to concerns about bandwidth.
"It's really cool and really problematic, all at the same time, insofar as it's really super cool if you happen to have the world's most awesome internet connection," Microsoft's Albert Penello told Polygon. "It was a grand experiment, I know we did a lot of work behind it, and we said this is one of the things where the network just has to get better before we can do it," he added.
Sony plans on providing cloud streamed games through Gaikai next year. Microsoft wishes the best for Sony in that endeavor. "I'll be really interested to see how our friends in the Bay Area [at PlayStation] deal with this problem. But I can tell you, it's totally possible. We like it, we're fans of the cloud. We're not shy about that."