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Soleron said:

This will also increase the price of the Xbox or Gold, since MS will not just eat a loss on server hardware they're letting you use for free.


Yep.

And exactly how messed up can a game utilizing this feature become if the internet becomes laggy or disconnected?

Personally, I'm of the opinion that computing is getting cheaper and more powerful faster than network is getting cheaper and more ubiquitous. There are some tasks network is essential for. Trading local computing for generic number crunching in the cloud doesn't seem like a good use case to me.



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