Except Milo was a proof of concept and this is an actual product available to any developer currently developing games for Xbox One. Titanfall devs are using it to offload the calculations for AI for enemies and friendleis alike. 

I believe this is something a lot of people are not understanding.  Its not like MS is saying developers can use the cloud in 2014 at some point in time but instead they can use it now.  MS is giving examples now and the probably will have a few studios do some proof of concepts to get developers rolling.  Already the 343 Halo team is using the Orleans platform for the development work so you might see somethng come out from them.

This does remind me of Sony and the cell back in 2006. But none the less this still sounds AMAZING for what it can do for games in the future. Hopefully it works out the way they are envisioning it. The only issue I am worried about is how the CURRENT picture they have painted for themselves will effect the sales of the console.

Everyone keeps saying internet nerds and Sony fans don't know what they are talking about and have future proofed their console. But if those same internet folks are SOMEWHAT more informed than the average consumer then it doesn't look good. The average Joe won't look at the system that is $100 more and say "oh with the cloud they can do X/Y/Z" they will wonder why they should pay $100 dollars more for this system with all the bad press it is getting over this other system that is cheaper.

None the less I hope MS works things out and gets past all the PR and bad press. And shows EVERYONE what the machine they built can do. Me personally I won't be getting either system for about 1.5-2 years after a price drop and more games or out. As for all the POINTLESS back and forth arguing and bickering...how about we just ALL wait and see what happens and what can be done on BOTH systems...

No.

Milo was a proof of concept about possibly cool stuff working with an actual product (kinect).

This 35 light years space sim is a proof of concept about possibly cool stuff working with an actual product (cloud).

Don't tell me you are buying into the hype twice?

It'll be a thing of the past as there will be no other option. What I really mean is the conversation about DRM will be thing of the past.

Ok... here we go.

1) OnLive official response (and sorry my mistaked... they stream games at maximum 720p@60fps).

"Today we have a target of 720p at 60 frames per second. The nature of the codec means we sometimes soften things a little bit depending on the state of the network. But if you give us a bigger pipe we can go to 1080p, do 3D. At the backend we already have the technology to do this. At the front-end it’s all down to the networks."

http://onlivefans.com/news/onlive-is-capable-of-1080p-and-3d-but-networks-apparently-are-not/6104/

The servers can do 1080p@60fps and even 3D but the Network that I'm using "internet connection" can't.

2)  The latencies never changes... what changed is the internet spped... now you can transfer a lot more than your old modem... but you know latencies is caused by how much time a data package needs to go from a point (server) to another (cliente)... It is physical distances... like a Server here in Brasil have a better latency for me (that lives in Brasil) than a Server in US.

I think that is a point because Xbone won't be available in all countries at launch... to archive the lowest latency possible they need to have a server more close possible to the user home... so they needs servers distributed in each country that Xbone will be release.

I made a test now for you...

My Work Machine to Google Severs: 130ms (Google is the fastest server response I have here... but it is not a dedicated gaming server)

I don't have the Azure IP server do make test but Digital Foundry stated that anything bigger than 100ms won't work for gaming cloud and I agree.

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

And I will added to graphic processing they will need something below 50-40ms... that's almost impossible with the actual world network infrastructure.

For a comparison... the Killzone 3 controlls lateny is 6ms (the time you command in controller leaves to be processed by console in a offline simple-player campaing).

3) Like I said the World Internet Network doesn't support 1080p@60fps streaming for games... and the NetFlix uses a high compacted video that at the end the quality of 1080p is worst than a 720p offline video (or even worst)... five a look at the YouTube 1080p quality... for games you need better quality after all... so the streaming is way more massive (more data transfered by second).

Just to put another point...

Yes... we have Fiber today (well Fibe was created almost 20 years ago) but the World Internet Network is old... 10-20 years old or more... the cables liking all the continents are the same and they won't be changed until they have some big problem.

MS alone won't replace all the crap cable and equipment existant in the all World Network.

Space sim with Xbox One = proof of concept

Games utilizing cloud computing  = true since the 1990s

Microsoft Azure being one the best cloud services available = true

Xbox One offering free Azure based cloud computing for all Xbox one devs = fact

Devs utilizing cloud computing on Xbox one in games being released this year = fact

I am not sure what hype there is to buy. 

I dont neither believe or not believe but show a graphically amazing game running on xbox one using the cloud or stop talking about

you NEED an internet connection to use the xbox one though, without one you cant even play games