Microsoft is testing a new technology that lets you stream Xbox games to your phone, but the company's cloud gaming chief says it's not quitting the console business anytime soon

• Microsoft is currently testing Project xCloud, a new technology that will allow gamers to stream Xbox games directly to smartphones and other devices.
• Business Insider spoke with Kareem Choudhry, Microsoft's vice president of cloud gaming, about how Project xCloud will supplement the existing Xbox ecosystem and bring new players into the fold.
• Project xCloud will support all Xbox One games and future releases as well. Choudhry said that the technology will continue to work alongside Microsoft's next-generation video game console, Project Scarlett, when it releases during the 2020 holiday season.
• Project xCloud is just one of several streaming video game services on the horizon. Google plans to launch a new gaming platform called Stadia later this month using similar technology.
• Visit Business Insider's homepage for more stories.

Over the past few years, major improvements in technology and a rapidly expanding player base have left the industry ripe for innovation. Now, there's no shortage of companies looking for a competitive edge in the coming decade, and the video game industry is preparing for its next phase.

Microsoft knows what's at stake. The company has spent years establishing itself as one of the gaming industry's juggernauts and is positioning itself to reach as many of the 2.4 billion gamers around the world as soon as possible. The company's latest technology, Project xCloud, seeks to expand the Xbox brand by streaming Xbox games directly to smartphones and other devices, removing the need to buy Microsoft's signature console.

Streaming video game services are the next big thing for the gaming industry. Microsoft began testing Project xCloud in October, just weeks before Google officially launches its new video game streaming platform using similar technology. While Google's Stadia will have to carve out new space in a competitive industry, Microsoft plans to use Project xCloud to supplement its existing Xbox hardware business and digital sales.

In an interview with Business Insider, Kareem Choudhry, Microsoft's vice president of cloud gaming, said the company has been shifting its gaming business from a product-focused model that was determined to sell consoles to a service-focused model that emphasizes the customer.