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Zappykins said:
Well, think about it like this. It's WATSON powerful? Well, it's powerful enough to win at jeopardy (and that's off-line.) So more powerful than that.

I'm still wondering why you're talking about Watson, since it has nothing to do with cloud computing. But I agree: Many cloud computing systems could theoretically win at jeopardy as well.

Zappykins said:
Also, in your original post you are forgetting about compression. You wouldn't need 5mb/s to send compressed game data - you could use much, much less than that. You could send the basic structure, and where all the light is bouncing around, then the local computer/X1 would do the rest with it's GPU.

Think about all the data that Netflix is streaming off Amazon servers.

He's not really forgetting about compression. He simply used the bandwidth numbers for streaming compressed video provided by Netflix. His only mistake was that that bandwidth is actually higher: For compressed 1080p video, Netflix actually mentions a bandwidth of 7 Mb/s; The 5 Mb/s they mention is for 720p.

If you just want to point out that it's not necessary to stream video for cloud gaming, well, that's correct. The above bandwidth numbers would be about right for a cloud gaming service like Gaikai. But if the cloud gaming service is not actually streaming image data, the required bandwidth can be much smaller.

But of course, that still doesn't change the fact that Xbone's "cloud" is mainly just a propaganda term. If Xbone owners weren't constantly being told about "the power of the cloud", they wouldn't even realize that something has changed since last generation. Because  from the end user/gamer perspectice, the cloud is pretty much just a bunch of virtual servers. Whatever the cloud can do, it could have been done with last generation's regular servers as well. If there was a good reason why something wasn't done with last generation's regular servers, chances are it won't be done with the cloud as well.