Xbox One will automatically record the last five minutes of a user's gameplay, according to Ken Lobb, creative director at Microsoft Game Studios.
Speaking to GameSpot in a Killer Instinct video interview conducted at San Diego Comic-Con, he provided new details about the console's game DVR functionality.
"It's called 'Project Upload', he said. "So the idea is that you're always recording. We have a ring buffer game DVR basically, so the last five minutes of any game you're playing is always being stored locally on your hard drive.
"Let me give you two scenarios. Scenario one: I'm playing online and I just did the best thing ever. I can't pause [because] I'm playing online. You can say 'Xbox, record that', it'll grab the last 30 seconds and save it for you to play with later.
"So now let's say you're not playing online and you do the best combo or you have the best fight ever," Lobb continued. "You can finish after that fight, that thing you just did is within the last five minutes, you can go into that last five minutes and scrub it for the best stuff - I want that four seconds and this ten seconds and this 30 seconds and then I want that ultra combo.
"We have things, basically a wrapper, so you can put up something that comes before and after, the [example] video we showed said 'best of Evo', and you can also if you'd like voiceover and even put in some stuff from the Kinect camera, do picture-in-picture."
The integration of Twitch into Xbox One will also enable Xbox Live Gold members to broadcast games directly to their Twitch channels, as well as view content from other streamers on Twitch.
PS4 owners will also be able to share gameplay and screenshots using the DualShock 4's 'Share' button. According to the Guardian, Neil Brown, head of Sony Computer Entertainment Europe's R&D group, said earlier this month that PS4 uses a dedicated hardware encoder to continually record the last "several minutes" of gameplay footage, without taking up any processor resources.