Different thing. It's far more complicated to integrate lighting maps or cloth dynamics coming from the cloud (at slightly variable timing) into the existing rendering pipeline then to decode a (slightly buffered) 720p30 compressed video stream.

Plus nobody claims streaming full PS3 games will be better then playing them on a PS3. I have zero doubt that GT5 or Wipeout HD will be a disaster streamed from the cloud as opposed to running on a PS3.

This is PR bullshit, promoting always online (and thus gold) for single player games. Programming parallel streams for physics and graphics rendering is complicated enough without having to integrate data that may or may not be there in time. Plus the time to receive, decode, and the memory required to store that data, and simultaneously have a backup method ready and available is only taking resources away that could be utilized better locally.

It can do a lot for persistant world multiplayer games, mmo's with dynamic worlds. Send all the data around you from the server while doing the rendering locally, second life style. (You can do that for singleplayer too ofcourse, unique huge dynamic worlds. Except it's not economically viable to have a whole world running for each player)

Btw the cynic in me says it will mostly be used for targeted in game adds.

Digital Foundry nicely put it:

"But perhaps the most curious thing about the Xbox One reveal was the manner in which Microsoft's engineers - and Turn 10's Dan Greenawalt - referred to both "transistors in the box", and "transistors in the cloud", the inference being that Xbox One could evolve by offloading mathematical computations from the local hardware to the ginormous servers Microsoft is prepping for the new system's launch. There was talk of new worlds being generated in the cloud, and less latency-specific systems like physics and AI being processed outside of the console. It's true that this is an exciting prospect in terms of creating massively multiplayer open worlds where "next-gen" dedicated servers will be required to keep track of everything that's going on and feed that out to the gamers.

However, even the 20-30ms latency we tend to see on the raw exchange of data over the internet is an absolute lifetime in terms of rendering games locally, plus of course there's the fact that any game embracing this won't work unless your internet connection is always on. We're certainly curious about how this particular facet of Xbox One gaming will evolve in the long term, but we weren't particularly convinced by the ideas set out by the panel - many which came across somewhat as wishful thinking thrown out there with no real exploration or real-life applications."

http://www.eurogamer.net/articles/digitalfoundry-spec-analysis-xbox-one

This is probably bullshit, its only an excusse to make you be always online and force you the DRM crap down your throats like EA did with Sim City 5 which did not need to be always online.

http://www.extremetech.com/gaming/150598-drm-deceit-simcity-doesnt-need-to-be-always-online-says-maxis-developer

Sounds more like you don't want it to be true than it can't be true.  I really can't understand that kind of thinking ...

It could be bullshit (again, nice choice of words again in your post, seems to be standard for you) but the reason why is a different one and can be found in this thread in way better posts than yours.

You are having another meltdown? another one?

This guy keeps posting insults and negative comments in every Microsoft threads... Just ignore him and report him.

It's not going to make much difference. If they are going to offload only particular portions of the game onto cloud there isn't much scope.

Not to mention the more they offload, the faster internet required, and any drop in speed will create some problems with it.

And the effort the devs have to put in to create two versions - offline and online. I don't think it will work out this way.

A step in the right direction, a near perfect step by MS. Azure is huge.... They're all over the world too and not just in the US. There should be another console release after this, even from MS.

Xbox Cloud or Azure incoming?

The cloud isn't viable nearly enough as it is to do tasks like this.

We all need way faster internet speeds and even then only people with access to that kind of internet can use this.
Same with the Gaikai thing. We won't be seeing full PS3 streaming anytime soon. (Maybe not even PS2)

It's best to look at the cloud as a "possibility" rather than it's all going to work. Though for MMOs I can see this working to a degree, but then there's the issue of lag.

Either way highly skeptical.