This notion that the cloud will help with graphics rendering is stupid, graphics rendering is time sensitive, as such the game is either rendered locally on the xboxone, or it's rendered on the cloud and then streamed to your xboxone similarly to how Gaiki and onlive do it. but not this in between stuff...well not unless your into slide shows instead of playing games.

What I can see the cloud doing is perhaps running a pseudo MMO like persistent game world were certain data is pulled off the cloud so that a town and it's people seems more organic because the town/city simulation can be done on the cloud, it will also allow for random events to occur which people can partake in.....though I only see this working on Skyrim/fallout type games because it's very similar type of game to that of an MMO, Guild wars 2 I think is a good idea on how this could potentially work, and if the net goes down the game can simply default to the standard AI routines which offline games have always had, not organic but can do the trick. The cloud can also assist with FPS, but not in anything new rather in what's been done for years on PC, simply put, dedicated servers so that player counts can be as high on the xboxone as they are on PC for games like Battlefield 3, as well as low pings.

In all honesty as much as we can speculate, Microsoft are the ones who will have to show this stuff working without the cloud and with the cloud, in order to illustrate that their "x40 power with cloud" statement is valid in true, otherwise it's just PR fluff.

http://www.datacenterknowledge.com/archives/2013/05/24/microsoft-will-back-xbox-one-300000-servers/

"Booty says cloud assets will be used on “latency-insensitive computation” within games. “There are some things in a video game world that don’t necessarily need to be updated every frame or don’t change that much in reaction to what’s going on,” said Booty. “One example of that might be lighting,” he continued. “Let’s say you’re looking at a forest scene and you need to calculate the light coming through the trees, or you’re going through a battlefield and have very dense volumetric fog that’s hugging the terrain. Those things often involve some complicated up-front calculations when you enter that world, but they don’t necessarily have to be updated every frame. Those are perfect candidates for the console to offload that to the cloud—the cloud can do the heavy lifting, because you’ve got the ability to throw multiple devices at the problem in the cloud.” This has implications for how games for the new platform are designed."

To sum EG's article, from things that a typical game engine cycle consists of:

- Game physics (update models)
- Triangle setup and optimization
- Tessellation
- Texturing
- Shading
- Various render passes
- Lighting calculations
- Post effects
- Immediate AI
- Ambient (world) AI
- Immediate physics (shots, collisions)
- Ambient physics

things that seem suited for running on cloud:

- ambient background tasks
- some forms of lighting (though it seems only for static environments)
- background AI

So, according to EG, not that much really can be co-processed via cloud, though it obviously can benefit open-world games with background AI/physics.