It is merely speculation at this point, but the PR bullshit of making your local machine 4x more powerful is what is unbelievable. Nobody denies there are certain things that the cloud can do better.
I've only made a few simple games myself, those used pre computed data. Sure a cloud could do that, but it would have been an unnecessary complication. I've had a lot more experience with cloud based computing in the gps navigation field. There it makes sense, maps change all the time, a server has more up to date information of local traffic conditions etc. I made a caching system to retrieve pre processed vector map data in parts. It wasn't used though, too complex (more drain on the machine then rendering locally), too many variables with outages, too much bandwidth. A system with a local change file on the existing map is used instead.
Rendering games is far more complex and requires a lot more resources. 1080p60 is the next target, 5 to 7 GB of ram available for game engines, 8 core cpu's. It will be hard for the cloud that add much to that raw power.
We're at a point now where development tool are being simplified with engines in which you can instantly test your artwork thanks to real-time global illumination for example. Figuring out where to re-insert pre computed data, coding for data that's unpredictable in timing, coding backup schemes, that's all moving in the opposite direction.
Coding for the cell is a bad example. Totally different. Every ps3 has the same spe's with the same latency and bandwidth. Still it took years to take advantage of it since parallel processing is difficult to do well. Now with cloud computing everyone has different internet, latency is high and undependable, bandwidth is extremely low.
Sure, some people will take the challenge and find some ways to enhance a few things with pre computed data. But making your console 4x more powerful is PR bullshit. Most if not all of the benefits will come from adding dynamic data to games. It will enhance games greatly, it will not make your console more powerful.
Cloud processing could have saved Skyrim on ps3. Keep track of the change data on the server and only serve the relevant cell data to the console. (They could have saved it too by writing a better caching scheme for change data using the hdd, no a lot of excuses there, merely the old foe legacy code and tight deadlines) Server side has the benefits of being able to keep updating the change data, saving a bit of power locally.
Somewhere there is a trade off between updating things locally and waiting for it to download. You can also look at it this way. Non time critical stuff that doesn't need to be updated every frame will also give you a power boost locally. Update something every 5 frames, you have 5 times the power available to do it...
DF is not gospel either. They trounced OnLive when it was announced, not possible. Then it came out and it sorta worked, although most of their fears of laggy game play, compression artifacts, and lower then local rendered detail were true. But instant demos, seeing what everyone else is playing, is certainly cool. Then it kinda went bankrupt...
Anyway as a programmer I'm very curious to see how game developers will utilize this. Cloud computing will have it's cool things too, but I don't expect it helping out with rendering.








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