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Unless microsoft is going to charge an expensive subscription then yeah it will under deliver.

Microsoft is gonna have to be forced to buy extra hardware in order for that to happen because the cloud doesn't actually have infinite power. It's power will essentially scale based on the amount of subscribed users. The "cloud" essentially goes to some dumb terminal's where the X1 will offload some processing on it. To top it all off microsoft also has to pay for maintenance costs too as well as electricity bills for the extra hardware being used.

All of this is really expensive and only some users will attempt it to subscribe.