Microsoft won't discuss whether the console could offer support, despite the fact that the ambitious game-streaming service pulled off a full HD over E3.

The 360 is already moving away from disc-based releases, and more towards digital delivery, but it seems it's a little too soon to be looking at cloud-based gaming on the console just yet.

"It's nothing we're ready to announce or talk about today," boss told Kotaku. "I think that a broadband-connected console to the enables us to do many things. And, as the bandwidth continues to increase and latency continues to decrease, I think it opens up new avenues of possibility. And of course I've got 5000 smart people back home that will tell me all the crazy things that can't be done.

"But there's also just as many that can solve all these technological problems and deliver the amazing innovation that they're doing. I think anything is possible but nothing that we're going to announce right now. I think just delivering 1080p [without delay], something that no other device has done, is pretty amazing."

More OnLive chit-chat as we get it.

By Luke Guttridge