Neither do Microsoft by the sounds of things. The power of the cloud will do very little for the raw performance of the Xbox One. Unless it's running an MMO, what the Xbox One is capable of online, it must be capable of offline. Even if Microsoft do utilise the power of the cloud in an always online game, internet speeds will restrict what it is capable of, and the power that they gain will probably be nowhere near the 600 - 900 GFLOP advantage that the PS4's GPU has.

I'm getting a little out of my depth now, but there are plenty of articles on it.

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

As for a PS4 game that looks better? I'm not sure at the moment. Some games don't have very good footage or direct streams, some games were incomplete and other games were running on GTX Titans apparently. The Division running on PS4 looked pretty incredible to me and was definitely in the top tier of games shown at E3, and despite being a tech demo, The Dark Sorcerer blew everything else away in my opinion, it looked incredible.

No need to get nasty.
You make it sound as if other devices can't have any form of cloud computing, which would be false, no special hardware is required other than a dash of Internet access and a pinch of server.

Do people really think that the PS4's GPU being (allegedly) "50% more powerful", that it means that the entire PS4 is 50% more powerful than the X1? Give me a break.

One part being more powerful does not mean that the sum of all parts is equally as powerful. That is just bad arithmetic and people are setting themselves up for disappointment.

I'm just saying there's no need to fuss over hardware specs anymore when Microsoft and even Sony eventually are gonna move towards an all digital, cloud computing future sooner or later. The third party games are gonna look the same. The games on Xbox One like Forza already look amazing. Yeah the PS4 might be better theoretically on paper, but anything the PS4 is capable of, the Xbox can do just the same or better.

Wow, you sound so ridiculous at the moment I had to refrain myself from questioning your intelligence. 

1. Infinite Amount of power? Okay, say Microsoft has 300,000 servers, the difference between the PS4 and Xbone's GPU is roughly 600 - 900 flops, let's say that there are 10 million Xbones all of them processing from the cloud, how the hell would 300,000 servers supply 10 million xbones with more than 600 Gigaflops? Here's a hint, it simply can't unless each server has a Nvidia Titan in them, then they still wouldn't even be able to do it, not to mention that financially it would be a disaster to create 300,000 servers capable of even outputting that much from Xbox live costs alone they wouldn't recoup their losses for the hardware inside. I'm calling bullshit on the 300,000 servers itself, sure Microsoft has 300,000 servers but I seriously doubt that they'll all be for Xbox Live, even if they were towards Xbox Live how would they provide infinite power across millions of consoles? They can't. 

2. Alot of people actually do know what the power of the cloud is capable of, it's simply not capable of what you're proposing or what Microsoft proposed, it has been derailed again and again and it' sounds downright silly to someone who knows tech.

3. PC hardware is already superior to PS4, and the same PC hardware will be in the 300,000 servers that'll have to divide the power across millions of consoles...see what I'm getting at? Knowing you, probably not.

4. Killzone: Shadowfall, The Dark Sorceror, INfamous: Second Son, and The Division were all running on PS4 hardware in realtime, and are technically and graphically superior to everything shown for the Xbone.

5. Before you start stating "facts" or get into arguments over hardware, please, ACTUALLY KNOW SOMETHING ABOUT GOD DAMN HARDWARE. 

Otherwise you'll look silly. 

1) The ESRAM is to make up for the 60% slower RAM.  Even then it is still not as fast (Theoretically) as GDDR5.  Slightly more cores, much worse RAM, and 20% slower clock (800MHz vs 1000MHz) = 7770 at best, but probably closer to a 7750.

2) The GPU in the PS4 IS stronger than a vannilla 7850 with those enhancements as well.  It should easily catch up to a 7870.

3) A 7850 is already over twice as stong as a 7750, and 50% stonger than the 7770.  Then the 7870 is about twice as strong as a 7770 as seen here:

http://www.techspot.com/review/661-nvidia-geforce-gtx-650-ti-boost-sli/page2.html

Anyone with a solid understanding of AMD's current GPU archetecture will tell you the same as I have (And I am an Engineer so this is kind of MY JOB).  But if you don't believe me, maybe some actual developers will convince you:

http://www.gamechup.com/jonathon-blow-some-games-could-be-60fps-on-ps4-and-30fps-on-xbox-one/

Pemalite I think Dmick90 is trolling.  There is no way someone could be that stupid...

1. "Here's a hint, it simply can't unless each server has a Nvidia Titan in them, then they still wouldn't even be able to do it, not to mention that financially it would be a disaster to create 300,000 servers capable of even outputting that much from Xbox live costs alone they wouldn't recoup their losses for the hardware inside." Why do you think Microsoft had this DRM system and always online in place? They need as many people as possible to be connected with Xbox Live accounts in order to sustain those servers and build a bigger and better infrastructure over time. Microsoft has money to burn though so I wouldn't put it passed them. I'd be willing to bet on it. Sony does not have Microsoft's money to invest in an equivalent cloud infrastructure. 

2. No you don't know what the cloud is capable of, you haven't even seen what it can do yet. Stop trying to spin the facts and downplay Microsoft's investment in the cloud. What do you think they have been doing for the past 3 years?

3. The PS4 was built to match the best in PC hardware at the moment because when you launch a console you need to be inline or ahead of the PC because game consoles need to have a long shelf life. Thought you were smart enough to understand that.

4. That's an opinion, I don't think they look better. I haven't seen any PS4 games blow me away in terms of graphics when compared to the X1 exclusives.

5. You don't need get all ranty and butthurt, take a chill pill. I think you're making yourself look foolish with your obvious Sony slant.

They were running on dev kits. that has higher spec than the actual box. Even so drive club still looked better than the everything baked on forza, Infamous and killzone both looked better than ryse and MGS5 will look the same on both systems.

Wow, everyone else in the thread is pretty much laughing at your argument and commenting on how misinformed you are, and yet you're still defending your beliefs, despite how unrealistic and impossible they are?

The PS4 was built to provide a next generation experience that's cost efficient, not to be ahead of a PC.... My current PC has better hardware than the PS4 and it costed 800 dollars. 

I do know what the cloud is capable of, yes it's capable of enhancing games, but unless you have a extremely good internet connection, and I do mean extremely as in many MB/s per second than it simply won't do anything worthwhile. 

I'm not getting ranty or butthurt, it just angers me to see how misinformed some people are, and how even bad PR can brainwash a gullible person.