Watch all four parts.
http://www.youtube.com/watch?v=zqymlqNWiYI&list=PL68B5AAD69FDF2CE3&index=3

@Figgycal
I doubt activision has servers in every country they sell games.... EA maybe.... but then EA has the issue of volume of different games they sell.... MS and amazon are the biggest player in the world in that game and I wouldn't be surprised if MS is not more widespread than Amazon...
this is the real advantage being closer from every users.... plus unless they tweak a linux server solution they still would be paying MS to get the software on their servers.... and maintaining them is also an additional cost for them plus a local to put them into etc etc.... I doubt it would be entirely viable for them only for really big titles maybe and still we have always that issue of being present worldwide with those servers...

Implied what?  That "Sony" is behind and doesn't have cross platform chat? 

Killzone uses a mix of dedicated servers to support matchmaking and other features, and peer to peer for the actual gameplay. It's actually very similar to how XBL is set up. MS hosts dedicated servers for their matchmaking service for any game that wants to use it. Most do, some don't. That's why for many games, matchmaking is way faster on XBL than on PSN. On the PS3 developers are more on their own. That's one reason why this whole cloud server stuff could be a big feather in MS's cap next gen. If they offer the ability for dedicated servers very cheap, you could see games having dedicated servers on Xbone and something else on PS4.

And I am talking about actual popular games people care about, not less popular Sony exclusives like MAG, Warhawk, Starhawk, Resistance, etc. According to Titanfall developer Respawn, MS is offering access to the cloud network very cheap. So cheap, that they are going with MS's infrastructure rather than what publisher EA can offer them. That's very telling imho. Of course, time will tell if other publishers get the same deal. Just because MS offers Respawn one rate for their Microsoft exclusive Titanfall game, doesn't mean they'd offer say.. Activision the same rate for Call of Duty.

This is one reason why i am buying the xbox one. I hate how alot of COD players think they are good but they either cheat or use the lag as their advantage. Now with dedicated servers we will see who the good players are. lol i laughed at the guys who won the tournament for cod.

Dedicated servers will be there for every 1st party game. 3rd party devs will have to pay microsoft to use their servers (for cloud support or dedicated servers) but the price will be much cheaper if they go elsewhere. I know some 3rd party publishers have their own servers.

if some one wants to create a new post with it feel free to do so btw