Microsoft will continue to focus on backwards compatibility with Project xCloud being able to stream games from all three generations of their consoles.
Back when the PlayStation 4 was announced, gamers were disappointed by the fact that it isn’t backwards compatible, something Microsoft always cared about. Continuing that trend, Microsoft's streaming platform will be backwards compatible with the original Xbox, Xbox 360 and Xbox One.
Due to the backwards compatibility, on launch it will be able to stream 3500 different games without any changes being made to them by developers or them.
The Xbox team also updated the Xbox Developer Kit to add support for streaming. With them being most excited about the “IsStreaming” API which will allow a game to know if it is being streamed. Based on that, the game will be able to adapt to a smaller screen or hosting multiplayer matches on a single server to reduce latency.
Project xCloud has already been deployed in data centers in 13 different regions with more to come. It is currently in a closed alpha with employees testing the service from home. They’ve also announced a public trial later this year, which is admittedly exciting. We can expect a lot more information at E3.