Nvidia has been working on a system called CloudLight, they are per-rendering some of the region on the server, then each local computer will do a finer detail on each separate system or console. So global illumination, with photon mapping, could be rendered on the server, then your perspective would be rendered on your console.
It's a rather interesting idea. As I think GPU tech will vastly increase in the next few years, this, theoretically could be used to extend the life of a console. It also shows how even with fairly high latency, 200 ms+ it could still be utilized.
http://www.youtube.com/watch?v=JXbEdouUOxI








