How powerful is the Cloud really?

[Zappykins]

FrancisNobleman said:
I don't understand shit but I'm gonna come forward and claim that games with graphics partially made in-box and partially in-cloud are impossible on this day.

Either the game is running entirely on your machine - with the usual suspects like leaderboards, ghost times and replays being offloaded to servers - or the game is running entirely on servers and is being streamead to your device ala Onlive and Gaikai.

This this video may blow your mind.  There really is no reason to do either/or espcially when both the host computer and your local one can work together.  Sort of like how .h265 is going to improve the look, quality, and size of video streaming.