Microsoft is increasing its number of Xbox Live servers to 300,000, up from only 500 at launch and 15,000 today.

let's shed some light on the 300,000-server cloud architecture. Part of the server setup will be used to compute scenes in games. Microsoft is targeting areas that aren't sensitive to latency, a common complaint around cloud-powered games. "There are some things in a video game world, though, that don't necessarily need to be updated every frame or don't change that much in reaction to what's going on."

Microsoft is clearly betting on the long-term viability of cloud gaming, something that could theoretically make up for its lower specifications in time

for every Xbox One] we're provisioning the CPU and storage equivalent of three Xbox Ones on the cloud. We're doing that flat out so that any game developer can assume that there's roughly three times the resources immediately available to their game, so they can build bigger, persistent levels that are more inclusive for players. They can do that out of the game.

  Result and target!

envisioned scenario was with allways online everyone profits from cloud so all experiences are the same. due too enraged internet this has gone down the drain.

the likely scenario now will be this
xbox without cloud connection is weaker then the xbox with cloud connection

how will devs cope with that? will xbox users get the options for 2 different performance setting or will they be lazy? how will this effect level/map size!? the power difference between launch games and end of lifecycle games will be bigger then now! Will microsoft invest more to keep up with computer developments?!

there are still some question marks, but i'm not worried because microsoft initial plans were brilliant!

The future is now

Didn't you make another thread exactly like this except you just changed the title?

Im excited to see a developer show a game running w/ cloud processing (I really HATE that term) and without side by side. Really until then its all up in the air.

I would also love to see how a gaming offloading processing transitions if the uplink is cut (or flickers as does happen).

yes but i got told it was confusing, so it got a little rewrite

It's confusing because you are completely off base and do not understand the cloud. Nothing to do with your wording...

if you believe im wrong, fine! as i said yes there are still some question marks, that doesn't mean its wrong.

What question marks?

will devs be slacking and just make a nonoptimised game, will enough devs understand how to utilise the cloud itself.

how to handle disconnects or slow connections.

Unless the XBONE is selling way less than both the PS4 and Wii U, devs will optimize their games as much as possible. First party games will still look better, but not by much.

Devs understand the cloud just fine and have been utilizing it this whole generation. If devs had good net code this gen, they will have good net code next gen.

Just like when playing multiplayer(which will be the main use of the cloud), you will be able to feel if you have a good connection or not. Also since practically every game that will use the cloud will be online multiplayer/mmos, you will be booted from the game, just like this gen.