“It’s also been stated that the Xbox One is ten times more powerful than the Xbox 360, so we’re effectively 40 times greater than the Xbox 360 in terms of processing capabilities [using the cloud]. If you look to the cloud as something that is no doubt going to evolve and grow over time, it really spells out that there’s no limit to where the processing power of Xbox One can go. I think that’s a very exciting proposition, not only for Australians, but anyone else who’s going to pick up the Xbox One console.”

http://stevivor.com/2013/05/microsoft-xbox-australia-on-some-of-todays-lingering-xbox-one-questions/

my android phone when connected to onlive, its 1345 times more powerful.

I wonder if there will be a cloud only game pushing insane graphics.

Yeah, because everyone likes always on and cloud gaming...

In all seriousness, this is a reasonably good idea, though I would hope that it isn't a requirement. Maybe it could be done in such a way that it is optional, so you can get a 4K version using the cloud?

As for Sony vs Microsoft, Sony do own Gaikai so they are probably capable of matching it

but still need a decent internet connection -

Pretty interesting.

I watched the hardware discussion the designers of the Xbox One had after thw announcement and they were talking about how developers could offload things like AI and physics to the cloud to free up the CPU and GPU

Actually Google does it best no denying it.

This could/should be pretty great for games like M.A.G or MMO's.

Can someone please explain how cloud can make it more powerful?

cloud gaming became awesome when Sony bought Gaikai for a ridiclous price.

i think this will be more to future proof the system. sony is already doing this with gaikai, but instead of making the system more powerful they just let the serves/pc's or what ever they use to stream the entire thing.