the cloud is like "the internet 3.0".
what this means is MS will no longer own your games. basically the market chose MS office (documents on my computer) vs. google docs (documents in google's cloud).
the cloud will still be very useful. you can transfer your game saves around if you want to play at a friends house or own multiple consoles. you can have the cloud assist games if they are already online based (acts like a dedicated server).
oh,. and while sony went with a hardware solution i think MS's game DVR option is the cloud.








