Microsoft is about to launch its new Xbox Nano controller tomorrow, and the tiny device has a little secret. The Xbox Nano can connect directly to Xbox Cloud Gaming over Wi-Fi to improve latency. It’s a feature Microsoft hasn’t officially announced yet, but one I’ve been anticipating since the Xbox Nano leaked earlier this year.

The Xbox Nano will be able to connect directly to Microsoft’s cloud servers to reduce latency, much like how Google’s Stadia controllers used to work. This new cloud connect feature for the Xbox Nano is being privately tested on the new Xbox Cloud Gaming website, and will require you to pair the controller over Wi-Fi to Microsoft’s Xbox Cloud Gaming servers using the Xbox mobile app.

I’m expecting Microsoft to announce this as a preview for the new Xbox Nano controller soon, before it’s fully supported across Xbox Cloud Gaming on the web and on smart TVs. I first started reporting that Microsoft was planning a new controller with Wi-Fi connectivity to reduce Xbox Cloud Gaming latency earlier this year. I’d expect the upcoming Xbox Elite 3 controller will also have the same functionality.

Microsoft had also planned to introduce a direct-to-cloud feature on a new Xbox controller, codenamed Sebile, as part of an Xbox Series X refresh console in 2024. The refresh console was canceled, and it’s not clear when we’ll eventually see a new Xbox wireless controller with direct cloud functionality.