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The problem with "The Cloud" for gaming is that developers have to want to use it and they simply haven't. Why would they, unless it was an MS exclusive? Even then, with no Crackdown appearing, why would they take that risk unless it was a "technology showcase"?

It was never going to get off the ground in the first place and I bet it was one of the things Spencer deemphasised after it turned into something of a joke. Developers weren't biting on split development for multiplayer games and that pretty much ended it as a selling point.