Cloud technology is little more than a few servers and a smooth gateway. I could create an entire cloud environment in less than 2 weeks, faster if I had money to burn, which Nintendo has.
As for online: I'm prety sure Modern Warfare was 8 vs 8, which was on the Wii, whcih means it supported 16 simultaneous players online.
In essence, all 3 companies are in trouble. We've hit a glass wall with HD resolutions. Networks are getting bogged down with video and audio streaming, so until the infrastructure gets better, the networks can't improve.
It almost benefits Sony and MS to offer services like Steam instead of creating new hardware in the future,whereas Nintendo is a hardware company, and will always have a physical system, as they have been heard saying.

The Carnival of Shadows - Folk Punk from Asbury Park, New Jersey
http://www.thecarnivalofshadows.com
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