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I have said this before, it is not going to work. Cloud based computing is usefull for example research where they can let a cloud based server do several complex calculations that take alot of computing power. They can simply send a request with what they want calculated and then get the answer back in a fraction of the time that it would cost if they did it on a regular pc. Latency doesn't matter in this case.

You can't use it for something real-time like a video game. It's either letting the cloud-based server process everything and stream (compressed) video and audio back or let the gaming console do all the work, not a combination of both. It's also much more efficient to just let the server calculate everything and stream image and audio back since it requires much less information to be send back and forth.