Microsoft are finally showing the Power of the Cloud

[caffeinade]

https://www.youtube.com/watch?v=9nxlmCq4220
The power of the cloud doesn't seem to be doing all that much for the game.
Look at the interaction between the ships and the water.
Granted, it is an early build of the game on display.

GDC is right around the corner: I expect to hear more then.