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BenVTrigger said:

Im aware of this but MS version of the cloud is just PR speak.

Its just dedicated servers. Thats it. Still very nice and can streamline some aspects of games but not this huge power source MS was pretending it was.

And there you're incorrect.

There is a lot that behind the scenes is being done that you will never visualize that is going on.  Azure to begin with isn't the name of the cloud.  It's the name of the software technology that Microsoft built their cloud with.  A software technology that they built.  As that technology grows and matures, some of those features are being developed with the PC client in mind.  So already Windows 8 includes some of the technology necessary to make the cloud a functional extention of the client PC.  The patent development that exists with regard to cloud-based computing seems to suggest that will only become deeper between the client (PC) and server (Cloud). 

Likely not this generation, but more so by next generation, cloud processing will be an integral feature of any computing device.  You just won't be aware of it.  It'll just be.  That won't mean some things can't exist without the cloud, just that most things will be better with the cloud.