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It`s not really a rumor. They are looking into it.
I don´t really expect cloud computing to do the job instead of the actual hardware, but if it`s possible to use it to add some power to the machine, it could be cool.
In my mind, and i really don`t understand it all that well, it would be like playing a game on 2 graphic boards, with the most powerful being the cloud one. That way people can still enjoy the console by itself and those who have a great online connection, having the best experience possible.