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jlmurph2 said:
http://www.reddit.com/r/xboxone/comments/27yczf/i_just_calculated_an_estimate_of_the_internet/

In summary of the estimation: Cloud computing is definitely feasible on normal ISP connections. Would require 391kbps when the explosion starts.

That's a pretty simplified esimate. The server would first need to know the exact state and position of all objects in your game, then you need a quick burst to get the explosion data back to the console. Averaged over a second 391kbps for 10k chunk paths sounds fine, but you don't want to wait a second for them to all appear. Ofcourse you can pre-empt an explosion as you can start calculating and transmitting data as soon as you press fire on that rocket launcher. No different from having an online shooter handle hit detection server side.
The heaviest part of the physics calculation and data transfer comes when all the stuff starts hitting the ground, shattering, bouncing back / glancing off things breaking up incomming stuff, but I guess you can hide all that in a cloud of dust.

Still the console suddenly needs to light/shadow/z-buffer 10k extra objects. And from the comments of your link http://kotaku.com/the-new-crackdown-will-use-the-cloud-a-lot-1589866608 they're talking about millions of objects. /grain of salt