So the new thing going around is that the new XBONE update brings 1080p. I don't blame people for believing it, since it's actually possible.

Modern games with deferred rendering usually have large frame buffers. These buffers need to be stored in ESRAM on the XBONE, but they go in GDDR5 RAM on the PS4. At 1080p with tons of effects a next gen game could have a 64MB buffer. That would fit in the 8 GB GDDR5 RAM on the PS4, but it wouldn't fit in the 32 MB ESRAM on the XBONE. Hence in this situation the dev would have to decrease the size of the buffer to make it fit in the ESRAM. Lowering the resolution is the simplest approach. At 720p the buffer fits so that's what most devs would do in this situation. The new update supposedly fixes that so somehow the 64 MB buffer fits in the 32 MB ESRAM. Maybe the cloud upgrades the ESRAM to 64 MB. Even if the update had Microsoft technicians go to every single owners house and install bunches of RAM, it wouldn't really matter. That's what people seem to be forgetting.

ESRAM is a bottleneck that does exist and needs to be dealt with by devs, but it's not the main reason XBONE games look worse than PS4. It's pretty simple to prove this conceptually too. I think most people can understand rendering a game at 1080p 30fps and rendering at 720p 60fps use about the same amount of power. The differences in resolution and framerate basically balence each other out. So if for some reason you were to lower the resolution of a game, in almost all cases it would increase the framerate. Titanfall according to the ESRAM theory could be running 1080p 60fps, but the devs had to lower it to 792p to fit the buffer in memory. Lowering the resolution to 792p would free up so many GPU resources that the game shouldn't have any problems keeping a rock solid framerate, except it does. The beta drops down into the 40s and hovers around there towards the end of matches. Yes this is a beta and I fully expect the framerate to be improved for launch, but it also shows that the beta is being restricted by GPU power even at the low resolution. Fixing the ESRAM size issues would make it possible to render the game in 1080p, but it'd still need to drop the framerate to hit it. Titanfall beta with even 256 MB of ESRAM running in 1080p would be like 20fps. Same thing applies to every other XBONE game with framerate issues. This update would probably get games like Powerstar golf and Plants Verse Zombies in 1080p. It could even get Sniper Elite 3 in 1080p. It's not however going to have any effect on the big graphic intensive games. MGS: GZ, the Witcher 3, and Watchdogs are still going to be sub 1080p on the XBONE.

TLDR :Here's the best analogy. There's a really nice house you want but it's not for sale and you only have $100. Fixing ESRAM puts the house on the market, but you still only have $100.

esram can't do gpu tasks at all

I don't know and I'm not going to pretend like I know about this type of stuff, because if I did then I would probably get a job in that career field. But hey if some people are really into the technical aspect of video games/software then It doesn't bother me.

I didn't know the Xbox One costed as much as a house?

Its the power of the cloud finally being released. 1080P / 60 FPS is no match for Xbox One anymore.

Little question for dummies.

Every file can be compressed. (even so it looks/sounds/feels lossless)

Cant they just come up with a super algorithm and decrease filesize by 50%? I know it will take a hit on the CPU/GPU performance but still.

Can this be the reason for the 64 fits into 32?

hmm, when the resogate started with ghost, a lot of people were blaming esram.......that notion has shifted to power difference over time.

for all I know,,,,,,,,,,,,,,,,,,,,,,,,,titan fall will be coming out soon hahahaaha

i'm still hoping it will unlock higher resolutions for those with a stable connection

Which is why saying the update will make most future games 1080p 60fps is bogus.

TBH how is this supposed to work?

How can a generic internet connection even try to add at least 5% more computing power to a console? The DSL speed is nowhere near the memory/GPU/Whatever speed inside a console.

The only way I could imagine how it will be benificial in any way is this:
 
Serverfarm(cloud) Reads your game disk  Packs/encodes "stream info" in .zip .rar .7z whateverfile with SUPER MEGA ÜBER ALGORITHM.
The Xbox one uses 90% of its power just to extract/decode and display.

So the Xbone just uses 10% or so to handle the bare minimum of the game (controller input etc) and adds data it encoded from the internet.

But what happens when the internet signal is lost for a second? Huge bugs/graphic errors and freezes? I mean its like disconnecting the harddrive while windows is running. It needs to have some mini backup inside the ram (you know like the next stuff it knows will be needed)