Square Enix is working on a new cloud gaming technology named Project FLARE and President Yosuke Matsuda has a lot of confidence in the concept of cloud gaming, as he explained in an interview on Famitsu:
If you think about the long term, the trend of cloud gaming may be inevitable, and it could become the mainstream. Like with smartphones you can enjoy games unique to smartphones, I think cloud games will also offer experiences unique to the cloud. Moreover cloud gaming will also result in a big change in the business.
Project FLARE definitely looks ambitious, with its promise to put a “virtual supercomputer” at the center of its games. Of course besides some interesting but limited demos we haven’t seen much of it yet, so we’ll have to wait and see for actual results before it’ll have a chance to become mainstream.