In my world it's called a Wire Transfer.

because facts are in fact factual.  there are some significant limitations but if you don't believe me maybe you'll believe MS:

source

Ars Technica talked to General Manager of Redmond Game Studios and Platforms, Matt Booty about this server cloud. Ars wanted to know how “laggy cloud data” could help in a fast paced game. “Things that I would call latency-sensitive would be reactions to animations in a shooter, reactions to hits and shots in a racing game, reactions to collisions,” Microsoft’s Booty told Ars. “Those things you need to have happen immediately and on frame and in sync with your controller. There are some things in a video game world, though, that don't necessarily need to be updated every frame or don't change that much in reaction to what's going on.”

Booty gave an example of the utility of a powerful cloud computer with regard to in-game lighting where “things often involve some complicated up-front calculations when you enter that world, but they don’t necessarily have to be updated every frame”. Also physics modelling, fluid dynamics, and cloth motion can be handled by the cloud without adding lag to gameplay. Booty suggested that the power available in the cloud to a single Xbox One user would be equivalent to about three Xbox One consoles working together. Developers will have to decide for themselves in how to manage what is being offloaded to the cloud.

Turning to the use of internet and what might happen if an Xbox One user has a disrupted connection Booty said “If there’s a fast connection and if the cloud is available and if the scene allows it, you’re obviously going to capitalize on that”. If a connection drops the game will “have to intelligently handle that” he added – however that implies that graphics would suffer in this case. This is quite a lot different to how the Sony PS4 will use cloud computing to allow ‘backwards compatibility’, or rather streaming, of previous generation PlayStation games.

does 360 have cloud feature too?? coz i hope cloud (not the cloud from FF7 :D) is not the reason that titanfall is not coming to PS4!

Loll people thinking cloud is a gimmick need to get out.... it's already there to stay and growing day by day in every corner of the tech world....
The only hold back cloud has today to go full blown is ISP infrastructures....

And thinking Sony has anything close in term of cloud infrastructures or capacity to expend it to
MS needs to tell me what they are using I need to get some... cloud and server integration is one of MS main current business...

The cloud is real. But it won't be used the way many people think it will. Only background tasks will/can even use it. Anything front and center can't use cloud processing.

Which is already a lot.... everything static in a game could pretty much be offloaded there.... stuff like the original vision of Peter's fable could have used that for a lot of the stuff in the game that didn't come to life.... and persistent MMO.....

I'm really interested in how a dynamic reactive AI (used in shooters) will works on the cloud... its seems like the dynamic reactive part will be lost.

depends what is offloaded... stuff like squad AI could be efficiently offloaded and would make things more realist... when a squad member gives out orders there is a lag between the order and the execution... to simplify you attack an NPC it sends out an order to support/cover him... that's just an example... but it could give more depth to AI.... having entire groups of NPC reacting to your single actions in a deeper way....
not saying that titanfall will be all that, but cloud computing used right could add a lot to the game experience, there is no doubt about it... the infrastructure will be there up to devs to exploit it correctly....

Cloud processing is only going to get better with each game. And the fact its native to every xbox one sold is brilliant. Cant wait for xbox one.

Native to every Xbone sold?

I think guys are confusiong the things here... Cloud is not client hardware dependent... it is server hardware dependent... so if a dev program a PC game to use Cloud it will use.

It is software (game) using Server hardware capability.

Said that I'm MS devkits for Xbone have the software APIs to make easy the use of the Cloud by developers... but there is nothing native in Xbone hardware related to Cloud.