San Francisco, Aug 17 (IANS): Microsofts head of Xbox and gaming, Phil Spencer, has confirmed the company is not working on a streaming-only console.

Previously some reports suggested that Microsoft's next-generation Project Scarlett console would ship with both a high-end version and a "cloud console" with limited amounts of local compute for things like controller input, image processing and collision detection, The Verge reported on Thursday.

"We are not working on a streaming-only console right now. We are looking at the phone in your pocket as the destination for you to stream and the console that we have allows you to play the games locally," Spencer said in an interview with Gamespot.

He pointed out that Microsoft was working on consoles and a cloud service, but there was no reason to assume that the two were connected and next-generation console, Project Scarlett, would also support xCloud when it launches in 2020.

Microsoft is planning an October launch for the first public trials of xCloud, and the company has demoed the service recently, allowing users to play Xbox games on their phone.