We are fast approaching a point where the next generation of gaming consoles will be announced, but Microsoft is also preparing to embrace game streaming and last night gave us a first demonstration of Project xCloud in action.

xCloud is Microsoft's answer to playing a game regardless of where you are or what hardware you have in front of you. That game is running in a datacenter and then streamed over the internet to your device of choice.

In the video above, Forza Horizon 4 is being played on an Android smartphone and controlled with an Xbox One controller connected via Bluetooth. In reality, the game is running in one of Microsoft's datacenters and the visuals are streamed to the phone. Inputs on the controller are sent back and the game reacts accordingly. All this is happening fast enough to make it seem like the game is being played on a device otherwise incapable of running it.

In a controlled situation with a solid internet connection, of course this is going to work well. However, if you're connected to a busy Wi-Fi hotspot or your connection at home isn't fast enough, it will all come to a grinding halt. xCloud lives and dies by the quality of your internet connection, as does any other game streaming service.

For now, Microsoft is demonstrating that xCloud works, but we have no firm dates for when it will be available to use by consumers. Kareem Choudhry, Microsoft's corporate vice president of Gaming Cloud, does state in the video that testing starts this year, though. So a 2020 roll out, perhaps?