Microsoft is at work developing a new form of netcode called DeLorean, which is meant to be used specifically for cloud gaming. One of the biggest problems with cloud gaming is latency, and DeLorean can hide up to 250ms of it from the player. That’s almost a fourth of a second of lag.
How does it work? Well DeLorean is a very basic A.I. Its job is to predict what you are going to do before you do it. So, for example, if you are just mashing buttons randomly in an action game, DeLorean will assume you will do this and stream the result of your actions to you before you actually press the button. It will then compare your actual button presses to its predictions and roll back the game if there was a mismatch. In harder to predict situations, DeLorean will stream multiple outcomes and display the one that is correct.
The only problem? DeLorean uses up quite a bit of bandwidth. It requires about five times as much bandwidth as standard cloud gaming systems. That can actually introduce more latency! Unfortunately this means it’s not ready for the common gamer just yet.
Source: Tech Crunch