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theprof00 said:

You are agreeing. MS having HUGE resources put into cloud :

a) does not mean their xbox cloud service is further ahead.
b) Does not mean their xbox cloud is better
c) does not mean that Sony's gaikai is not competant for the purposes aforementioned.

Why? Because
a) Having more invested in a company-wide cloud system does not inherently mean apps and services are yet developed for the xb1. One is hardware and one is software.
b) Having more invested in servers only means that you are capable of running MORE and delivering MORE content. As a correction, the POTENTIAL is far better, but again, hardware and software are not the same thing.
c) Because Sony may have exactly enough for what it requires. Sony doesn't need to have 500k servers to make a sandwich, if you catch my drift.

I believe there is a misconception on cloud service and more important to this discussion MS Azure platform.  People believe its just a combination of a bunch of servers to serve up content but thats just one service out of 3.  MS cloud service does way more than streaming, it does all of the different cloud services and the cornerstone of those services is the software that makes it all work together.  The software that allows Azure to spin up and down resources to allocate resources at a moment notice, to distribute resoruces locally to a requestor.

One of the new platforms MS created is called Orleans.  Orleans allows MS or any developer to create cloud based applications that can distribute their work across many different servers at one time.  Combine this with Azure ability to spin up resources locally to the requestor, you have a service that can increase the quality of service when streaming content to a user. 

What I am stating is that MS has a complete cloud solution that allows them to leverage the complete ability of their Azure services to deliever content to users locally. The closer you are to a datacenter the lower your ping times and thus the faster the respone will be for game streaming.  This is a pure numbers type of game couple with an advance software cloud service.

When both services go online, it will not be the one that started first that gets the nod from gamers, it will be the one that present the best quality of service.  The service that has the best quality in picture and the lowest pings to present a more responsive game.  MS has the advantage in that they can leverage Azure capacity and ability to spin up resources local to the user with Orleans ability to spread out processing to deliver a better picture.

@ Bolded: Enough to do what.  Sony and MS operate on a global scale not a basement.  The quality of the service will definitely be impacted if Sony does not have enough server to serve content locally. Why do you think Sony is only doing the US, Its capacity.  Even if MS release a year later but have the capacity to present a much better quality of service because they can serve up content locally to everyone in the US and internatioanlly is a huge advantage.

You are basing your opinion that MS just started yesterday on their game streaming service.  Thats a fallacy in your argument.  Who knows how long MS has been working on their streaming service.  Just because you are hearing about it now does not mean the service haven't been worked on.  The Orleans cloud platform only got leaked this year and MS was working on that for 3 years.