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Xbox One will support cloud technology and according to Xbox incubation and prototyping group manager Jeff Henshaw, the cloud will provide developers with the CPU and storage equivalent of three extra consoles.

Speaking with OXM, Henshaw said this will allow developers to create larger, persistent worlds for Xbox One users.

“We’re provisioning for developers for every physical Xbox One we build, we’re provisioning the CPU and storage equivalent of three Xbox Ones on the cloud,” he said. “We’re doing that flat out so that any game developer can assume that there’s roughly three times the resources immediately available to their game, so they can build bigger, persistent levels that are more inclusive for players.

“They can do that out of the gate.”

Furthermore, over on Stevivor, Xbox Australia spokesperson Adam Pollington told the site Xbox One would be “40 times greater than the Xbox 360 in terms of processing capabilities” when using the cloud.

“Xbox One is ten times more powerful than the Xbox 360, so we’re effectively 40 times greater than the Xbox 360 in terms of processing capabilities [using the cloud],” said Pollington. “If you look to the cloud as something that is no doubt going to evolve and grow over time, it really spells out that there’s no limit to where the processing power of Xbox One can go.

“I think that’s a very exciting proposition, not only for Australians, but anyone else who’s going to pick up the Xbox One console.”

Last week, EA EVP and CTO Rajat Taneja claimed next-gen Xbox One and PS4 were a generation ahead of high-end PCs in a LinkedIn post reported on widely.

A few in the industry disagreed with his stance last week after the post went live.

Thanks, Develop.

Well, this is quite the same thing we have learn in the past days but still awesome :)
Microsoft Azure is already working and using it to power the Xbox One is a great idea.

I cannot wait to see Skyrim like games running on Xbox One with cloud processing handling all the world events,NPCs, etc...

Who's paying for this? Will each Xbox be $1500?

Does your quest auto fail if your connection is interrupted?

I want to see this in action.

MS, give me Side to Side video's of games running:

1) Not connected to the net
2) Connected with < 10 MB Connection
3) Connected with > 10 MB Connection

I am very curious how this will look and how this will effect development.

edit:  Hell, I want to see a game running on the cloud and continuing to run after the internet gets cut out from under it. 

ahah I guess they will have to keep that in mind while designing it. At the same time; I'm usually playing only online so for me when my internet connection goes down; it is already over. I do not see the why this would be different. I'm all for this :)

But the developpers will have the choice to dynamically fallback on the local CPU if needed: like you send your processing request on the cloud, if no response in a specified amount of time, you just compute it locally). This is very easy to imlement.

This!

Make it happen Ballmer!

Added this too!

edit:  Hell, I want to see a game running on the cloud and continuing to run after the internet gets cut out from under it.

I'm sceptical about using this for rendering processing actually but it looks like even Nintendo is looking into that direction...
I want to see this in action too, esp. the comparisons :)

But there are plenty of other areas where it can offload the local CPU.

Technically, there is nothing very hard to achieve that. Queue up the request, wait for an async response, if no response, compute it locally (with the impact on the gameplay). Obviously everything must be asynchroneous but there are plenty of async. tasks in a videogame :)