I do not believe even next gen we will meet that requirement for internet speed (especially the UK). If it does go that way i think the idea would be much like TVs are now, you buy a TV because of the TV features then you subscribe to other services, digital TV, Netflix and/or you buy an external DVD/Blu-Ray player. If anything it would mean the death entirely of the gaming console as you could put the technology and services into the TV itself. But even now, with BBC and Netflix able to stream HD TV a stand alone blu-ray player and DVDs is still prefered by many because no service is totally reliable. A box with the hardware contained in it with the latest hardware at that would always be better than streaming.

You are right on the rest though but I'm unsure how good it will be as I'm sure companies are expecting speeds to improve and infastructure as well, which includes hardwired connections, even if Wifi does catch up, wired will also be better with less loss.

And Earl Court is a signal sink, no changing that, unless with wish to rebuild it.

not really. depends on preference. I stream all my media already. I dont use dvd's or blurays. I stream 3d movies, netflix, hulu, etc. a dedicated box would be useless to me. I dont want to go rent movies and games, I want to sit down and enjoy them.

exactly... we are pretty much just waiting on ISPs and all the telecom conglomerate to get there.... once that's done byebye expensive and powerful hardware.... the cloud revolution will be full on and people like me will just rely on very nice but yet cheap terminals supported by massive cloud infrastructures....

Never trust a man who has no EYEBROWS!

Source: Dualshockers.com

Microsoft’s Phil Harrison Explains that Xbox One’s Cloud Can Actually Improve Graphics

The  cloud feature of Xbox One has been discussed quite actively by developers and fans, and one of the points of contention is if it can actually provide enough computational power to improve a game’s graphics. Even the PS4′s Lead Architect Mark Cerny explained that “Trying to boost the quality of the graphics, that won’t work well in the Cloud.”

Yet Microsoft seems to disagree with that view, as mentioned today during his panel at Eurogamer Expo by Corporate Vice President Phil Harrison.

""It’s also about cloud processing and AI. This is where some of the computational effort of a game can be offloaded to the dedicated CPUs on the cloud, to make your game experience even better, better graphics, better lighting, better physics.

This is an example of where we think the the cloud is going to push the next generation of game development in new and creative ways, that will make the experience even more better.""

There you have it, straight from the Lion’s mouth: at least according to Harrison, the Xbox One will actually be able to count on the cloud’s power to improve games’ visual fidelity. Will it really manage that feat? And how? We don’t know yet, but we’ll hopefully see it in action soon.

As a bonus, below you can see a picture of one of the massive server farms that will offer their CPU power to the Xbox One’s cloud.

You missed the mark entirely. They aren't using the cloud to render... they are using it to offload processing (mostly cpu intensive stuff) to free up local resources for better graphics.

That's very possible.

Nope!

They can only offload non realtime tasks as the latency is too great. You can have a mega fast connection but it will still be affected by how busy your isp is and peak times etc.  Graphics will be GPU limited no matter what.

Lol! This again?

No the cloud can't improve graphics. The GPU does the rendering and you can't get more that what it can do. No matter what burden you take off the CPU the GPU is the limiting factor. We could argue about this all night but its a fact that the internet isn't quick enough for this especially at peak times. The latency would be too great for real time graphics.

i see cell phones being all people will really need. get home connect your cell phone to your tv( just a screen with need to compute stuff should make tv cheaper) and do what you need. want to work at a desk, connect your cell phone to  a moniter use your blue tooth keyboard and mouse and your all set. time will tell

Let them keep drinking the kool-aid as they wish LOL. I have already explained the dilemma but I guess their far to up in the heavens to do listen anymore. :)

so wait a leading software company that has been pushing for cloud tech for more than a decade, is lieing to the dev community which are their potential core users and will be the voice of the tech, just to push an agenda on their potential customer of one of their smallest market ??? makes perfect business sense...

while I don't expect better graphics from it, there is far more to it than just highly demanding  real time graphics games.... they are many things I could see using that... from little things to bigger things.... in a sports game you could organize online tournament, where you could have real time reactions to what is happening with other matches, take a soccer game you need a win by 2 goals to make the cut to the next round but the in the other game your competing team is winning by 1 goal so you need 3... you could have the crowd react in real time to that and the moral of the AI and your own team also react to that....
in turned based RPG you could have better renders of battles.... you could have games like magic have great battle animations.... you could offload a lot of the apps computing happening in the background, like they already do on phone apps...
in games like fable you could have everything molyneux was dreaming of with the city growing and famillies expending and characters growing old and all that goodness that is not happening on screen being ofloaded to the cloud and requested when needed...

no matter how hard people try to downplay it and even if we don't see anything right away, there is no doubt that having the possibility to use their infrastructure is a big plus whether it is for games or anything else.... having cloud capabilities dwarfs not having it especially at that scale....