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spemanig said:

One thing that wasn't mentioned in that podcast was how reliant each individual SCD is on your internet connection. This is obvious, but if your internet connection is shit, your experience with it will be much worse, and those connected to you SCD will have a worse experience too. Think about it. When the host for a server on an online game has a shitty connection, everyone suffers. Same concept, only it effects the quality of the extra computing power you get.

Reading this patent more, the only way I can see this being marketed is in a similar way that a router is, except you WANT to share it. But I don't think this as being something most people are expected to own. The point have the few build this infrastructure for Nintendo, something that is kind of scummy, if you think about it. It's kind of their way of deferring the costs of maintaining dedicated servers to the end user. But this thing is really for adding computational power to the games that talk advantage of it. I assume that all games would run without it, but I can't even fathom how much the experience would improve if an infrastructure like this was built successfully.

You are dependant on your internet connection but will not necessarily be dependant on yours. That's one of the things SCD suppose to solve. Their console will have many SCDs to choose from to get the best results and yours will be delegated to complete task best suited for your connection.

It's one solution to some inherent problems with cloud gaming, like your host server example. The more centralized your server is the more people will be affected by latency, bandwidth, maintenance, failures, etc. People across the country or globe will have latency problems, bandwith to share, everyone experiences the same hiccups, etc. Distributed servers can help with those, but will also cost more. Nintendo's solution is even more highly decentralized or highly distributed. Sure it defers cost to consumers and you may think it's kind of scummy, but compare that with subscription based cloud services. It's not too different except you will actually own something physically.