You are misunderstanding immensely what Cloud Computing is about. It is not about streaming HD movies or textures, or auto updates. That's Bandwidth and that has very little to do with _servers_. It's about Computation. Say it with me, Computation.
What it means is that complex tasks such as computing a massive world scene in a game, where computing where all the units will go and what they might do, can be offloaded from an individual console, so it can do other things, It means multiplayer games, not necessarily MMOs, which are notorious for needing lots of processing power, can be offloaded from an individual console, so it can do other things.
Remember, its not about streaming, its about computation.
If I seem a little peeved it's because I have seen SO many people get this wrong.
The article you are talking about might indeed be that the MS network has a theoretical max _transfer_ rate of 3 terrabits per second, which seems really really low. But just to give perspective. The current top Super Computer has a theoretical max _compute_ of 54,902.4 Tera Flop per second. Super computers are used to compute things like nuclear explosions physics and other shit.
A warrior keeps death on the mind from the moment of their first breath to the moment of their last.
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