Square Enix is chasing the cloud-based gaming market with Project FLARE, a newly announced streaming service that claims to leverage "virtual supercomputers" in order to minimize latency while upping in-game performance and presentation.

Comparing Project FLARE to existing streaming services like OnLive and Gaikai, Square Enix notes that its own project offers exponential scalability, making it capable of delivering richer world detail and "real-time, Hollywood-quality" animation. Square Enix demonstrates Project FLARE's potential in a pair of concept videos for Deus Ex: Human Revolution (embedded above) and Final Fantasy XI, showcasing the service's enhanced physics simulation and online multiplayer capabilities.

Speaking with Engadget, Square Enix's director of business development Jacob Navok revealed that the company may set up a new business division in order to support the service. "We're very open right now," said Navok said. "We can be our own product, we can offer it to other partners. It's so early now that we don't have a specific way to bring this to consumers just yet."