Microsoft is preparing to enter the cloud gaming realm pioneered by services like OnLive and Gaikai, according to a report on Electronic Theatre, where they say the service will launch next year (thanks Computer and Video Games). This seems to explain recent indications that the upcoming Windows 8 will incorporate some sort of Xbox LIVE functionality, as word is: "Designed to incorporate the industry-leading online videogames platform Xbox LIVE into all of Microsoft’s devices and software – including Windows Phone 7 and the forthcoming Windows 8 OS (tentative title) – the portal would allow videogames to be delivered across all formats in unison. Microsoft Studios has already seen minor success with regards to these types of application thanks to the likes of Full House Poker, an Xbox LIVE Arcade and Windows Phone 7 title that has proven to be a fertile testing ground, though things may be taken much further in the coming year." Here's a bit more:
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