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Enemy said:

lol You seem like a Microsoft fanboy (or girl?). Sorry to ruin your "innovation" moment but this was created by Cloudgine not Microsoft. Cloudgine could use different servers and make games for other companies if they wanted.

The servers are only handling nonlatency dependent physics computations for the CPU. Basically, the cloud is helping the CPU remember the position and location of each object in the world, similar to other online games that rely on dedicated servers to handle massive amounts of players.

Everything else has to be generated by the Xbox One. The graphics are created by the Xbox GPU which means sacrifices will still have to be made to the graphics to accommodate the destruction.

The 3x power with the cloud was a big fat marketing lie that Microsoft used to draw attention away from the Xbox One specs backlash. It doesn't provide 3x the power of the CPU, GPU and RAM of an Xbox One. It only provides a fraction of what a full Xbox One is capable of. What they should have said was, "3x the nonlatency dependent physics" which is not 3x the power of an Xbox One.  

Crackdown 3 doesn't look very impressive when comparing it to offline games from last gen like Red Faction Guerrilla.

lol, what have we even seen of Crackdown 3 that makes such a silly comparison applicable? Also, Guerrilla was a great game, but it was mostly empty land with some small patches of buildings grown in. The best destruction in Guerrilla wasn't "offline", it was in the online MP modes :)