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I like the thought of just making centralized game servers the norm, overcoming many of the foibles of p2p. Utilizing cloud elastic scaling, games can commit to having servers without the length of a piece of string issue of how many to commission for launch, common problems being not enough servers making for sad gamers, and too many making for wasted money. Being able to spin up servers on demand means that it also makes it easy for games to have dedicated servers even once popularity goes away or not gaining critical mass, no more servers going away for old games.

That in itself makes MS' cloud infrastructure worthwhile, ignoring scope for cloud AI calculation, game world management and possible unrealised applications which may become apparent later in the generation.