What does that have to do with anything?

Your movies, music, TV shows, games, and DLC are all already stored on Microsoft's servers.

If 40 Million people have Halo 5, there's only going to be one copy of Halo 5.  Not 40 million copies.  The "list" that shows your games just shows you have Halo 5.  If you redownload it, you just accessing that same copy everyone else is.

Same with everything else.  In the industry, it's called content managment.  You maintain a single instance of the content, yet give everyone authorized to access that content, access to it.  If you bought it, you have access.  If you didn't, you don't.

The only real data going up on the "Cloud" is your profile (game saves and kinect profile).  You'll have access to the content you upload to your SkyDrive but that's a part of the amount of data you have through SkyDrive and unrelated to Xbox LIVE.  

The only other data type that might be uploaded are videos, but as far as I'm aware those are going directly to Twitch.  

Microsoft is just saying that you don't have to worry about how much content you purchase or the size of your profile.  There is room for everything.

Music upload via Xbox Music on Windows 8 will be available on Xbox LIVE and there is no limit to the amount of music you can upload via that service.  However, that said, only certain songs/albums are available to upload to Xbox Music and it is an automatic process.

You cannot upload video to the cloud.  The movies and TV shows that are available via the cloud are the ones that you've purchased via Xbox LIVE.

It isn't a ruse so much as it is marketing.  Confusing marketing at that.  I personally hate "the Cloud" reference.  Just say Xbox LIVE.

Certainly there are no limits to the game saves.

See above post. I'm reading through multiple topics here.

Its good that they've not put an arbitrary limit on your game saves in the cloud.

Call me an idiot ,but how do they work around multiple people dL say Halo at the same time , I'm sure  It wouldn't be in the  millions , given all the variables but it could be quite a few people?.

I'm confused.  Why do they need to work around it?  When you download something, nothing happens to the copy on the server.  The OS just has to be able to handle reading a file multiple times.  Oddly enough, Microsoft has been doing this for ages.  In fact, back in the day, before the Internet, Windows NT servers functioned as file servers where lots of people withing a corporation would connect to a server and access files.  Not to mention, once the Internet did make its way to the public, they added a Web server to Windows NT, and IIS was able to serve millions of connections in which every connection downloads hundreds of files without major issues.

That said, it isn't as if one server is serving out all these files.  There are farms of servers, connected to distributed storage systems, spread across the world in multiple data centers.  Not sure what the concern is yet.

Not everyone will be installing a game at the same exact moment.  I mean, even on a new release game, it'll actually happen in a wave that spreads across the planet in hour intervals.  As long as they have the capacity in servers and bandwidth, no one should notice any impact of 40 million people accessing the same game, if that ever did happen.

There was no concern it was a question about how they or anyone else for that matter  handle multiple down loads to a single game file  since you said that they only need the one   , and yes I realise and stated it wouldn't or shouldn't with alll the variables be in the millions, forgive me if I'm wrong  but with multiple data centres and server farms would this not mean multiple copies of the game files spread across the system rather than one.

Yes.  Data farms are replicated, so content is available across the globe.  However, in terms of quanity, you're looking at less than a dozen compared to 40 million.  The point being is that every user who has rights to that game, has access to a single copy of it relative to their geographical location rather than one they've uploaded or specifically copied to their data store.  And the reason for this is simple, it cuts down on the amount of storage space required. 

I'm guessing the software technology behind it is from SharePoint Portal Server.  When someone purchases the game, they're given the right to download it, which in terms of a file system is just a read.  But the user doesn't actually see the file in the file system location, they see a list.  The list is the same for every user, however based on what games and content they have rights to, the list gets populated.  Even when they request the file, they're not directly accessing the OS, they're accessing a reference in a database, that references the file in the file system.  That's as opposed to storing it as a blob in a database.

Basically, Xbox LIVE uses some fancy code to hide the file system from the user and present files, like a game download, in a pretty context.  Xbox LIVE users might see "My Content" and that might include "My Games" but those games arean't really physically anywhere where they can touch them.