Cloud is still years off. US bandwith restrictions don't help anything, and there is still noticeable "lag" in inputs, especially fighting games. Maybe in 10+ years but not right now, especially from MS because their #1 source of revenue is still the US market.
If anything next gen they will be pushing towards a steam like process and I wouldn't be surprised in two consoles from now if everything is digital, as much as I don't want to see it happen at least it will save me shelf space I guess.
It's just that simple.







