I remember there was a discussion about the experience and relevance between Sony and MS when it comes to cloud computing. Some users here argued that an overpriced 380 million USD buy out of Gaikai would put Sony close to MS for cloud computing / cloud gaming. Most of the users here know that Sony is not even in the cloud computing market and MS invested several billion USD already. Of course MS has a deeper understanding and simply more knowledge for cloud computing, that is just logical.

Here is a dev confirming what most of us already knew:

Xbox One cloud is 'one area console has advantage over PS4', says Avalanche tech lead

But believes Sony could implement a similar feature in PS4 if Microsoft is successful.

Xbox One's cloud-side computing is one area that gives Microsoft's console an advantage over PlayStation 4, Avalanche Studios' chief technology officer Linus Blomberg has told VideoGamer.com, despite PS4 featuring more impressive 'raw power'.

Discussing the next-gen console alongside studio head Christofer Sundberg, Blomberg said that the console's ability to compute processes on the cloud is "definitely an area where the Xbox One has a step up over PS4, and it opens up for many interesting things.

"It's perfect for open-world games like ours as it enables techniques to make the game worlds more alive and social, such as persistence and asynchronous multiplayer features," he continued. "We are already using server-side computations in our PC hunting game theHunter, so that's nothing new for us as a concept. But Microsoft's solution may allow us to do this more efficiently and to a greater [extent]."

Xbox One's architecture is said to allow developers to off-load non-latency sensitive processes to the cloud, freeing up system resources on the console.

According to a report on Ars Technica, processes that could be off-loaded to the cloud include physics modelling, fluid dynamics and cloth modelling, each typically CPU-intensive.

A Microsoft representative (via stevivor.com) has also claimed that the cloud's processing capabilities will make the Xbox One "40 times" more powerful than the Xbox 360.

However, if the technology "proves successful for Microsoft", Blomberg expects "Sony to follow suit and add similar support" to PS4.

Whether Xbox One games perform will better than PS4 titles (or vice-versa), however, is "too early to say," Blomberg adds.

"I think [Xbox One and PS4] will be very similar in the end," Blomberg says. "Of course, if we find areas where either platform is particularly strong then we'll take advantage of that. But it's too early to say if our games will look better on any of the two platforms. All I can say is that there's potential for visually stunning games on both platforms."

Besides Xbox One's cloud-processing, Avalanche is also considering making of use of Kinect 2.0 and the console's TV functionality.

"If it makes the experience better, we’ll definitively support the Kinect and TV functionality," adds CCO Christofer Sundberg. "We have a few ideas at this point, but will only implement them if it adds to the core experience rather than take away from it."

Avalanche is currently gearing up for its "biggest" E3 since 2005, where it's expected to reveal a Mad Max title and a new game in the Just Cause series.

http://www.videogamer.com/xbox360/just_cause_2/news/xbox_one_cloud_is_one_area_console_has_advantage_over_ps4_says_avalanche_tech_lead.html

Ok don't want to spoil it.. but there is no way that a cloud based system will be better than a run locally process. The internet is too slow for that type of processing. Also how can any 3rd party make something that will work off this cloud without taking into account any other platforms.

I recommend you take a look at the eurogamer article released today for more information...

But dont get suckered into the MS PR... this isnt going to figure much in actual games in the next 10 years.

Just keep drinking that PR Wine then ;)

http://www.eurogamer.net/articles/digitalfoundry-in-theory-can-xbox-one-cloud-transform-gaming

Goes into a lot more depth.

lol god forbid Xbox 1 has one pro over PS4. Inconcievable!

The PR speak is beyond annoying at this point. If you want to know how exactly cloud computing will be used in the XBox and if it is even feasible, I suggest you read this Eurogamer article on the subject. Do you research and form your own opinions.

http://www.eurogamer.net/articles/digitalfoundry-in-theory-can-xbox-one-cloud-transform-gaming

This is unfortunately the problem when fans of a product has been slated that even common sense goes out of the window, because they want to feel something... anything is positive. 

Ignoring the fact of PS4 and its capabilities because i didnt even mention that... you really think cloud processing in games platform (from anyone) is actually feasible.... interesting.

The key difference being that the PS4's raw performance advantage is available at all times, on all types of processes, regardless of internet speeds or the lack of a stable connection. Cloud based computing would be very nifty in some select instances or with some types of games, but it would be a method with more variables and a much narrower array of potential uses.

It would also be an extra development step for multi-player games.

My guess is that most developers aren't going to use it very much, outside of XO exclusives, just as most developers aren't going to attempt to squeeze more from the PS4's extra horsepower. It's just a lot easier to make multi-platform games essentially the same.

That being said, it will be interesting to see which console ends up with the more advanced exclusives.

I'm saying cloud processing by anyone (MS, Sony, Nintendo) will not work for games. It doesnt matter who its from.

I'm also saying that saying that any PR from any company saying their console will be x40 more powerful due to cloud processing, is BS.

You know this stuff can be feasible further in the life cycle right?