So, if Sony is well set for home cloud streaming, where does that leave Microsoft and its next-gen system, codenamed Durango? Well there's no doubt that it's capable of acting as a central gaming server in exactly the same way as Orbis, but sources suggest that a "second screen" GamePad-style strategy could well be more along the lines of an extension to its existing, under-used Smartglass tech, which would greatly benefit from the ability to receive streaming video - something that's unworkable for games on the current Xbox 360 set-up. However, from what we've managed to piece together, Microsoft's approach to streaming in general is somewhat more complex. An Apple TV-style unit based on ARM architecture, running Windows RT and perhaps featuring Xbox branding is under discussion. This would be a very basic games machine running Windows 8 apps, but geared more towards streaming video services like Netflix.
This piece of kit could operate as a standalone unit of course (an Apple TV competitor if you like), but it could also work just as well as a media extender on a home network, linked to Durango. In essence, the strategy here would be a reversal of Valve's ideas for its entry-level Steambox bringing remote PC gameplay into the lounge: Durango would take centre-stage in the living room, but the ARM box would allow for media - and gameplay - to be transmitted around the home. It sounds like an intriguing idea in theory, the only stumbling block we can think of being Microsoft's strong push for developers to integrate Kinect functionality wherever possible into next-gen gameplay. Replicating camera functions on an extender would be problematic, not least in terms of streaming all the data from a secondary camera back to the host console in the lounge.