Advantages are on the admin side, not the user side.  Unless someone is talking a grid type configuration, where computing is distributed across a number of servers,  then it is just dedicated servers, with ease of scaling and administering.  It is not magic.  It doesn't make graphics better either.

I wrote this on N4G:

I think this will be huge for RPGs. A changing world that evolves around you, even when you are not playing. Sounds like a MMO... well without the 2nd M and more a MSPORPG

Or imagine a HUGE FPS / RTS where 2 forces fight each other all over the world. Something like the EARLY Command & Conquer games, where you could chose the battle you wanted to take.

http://www.pcgameshardware....

So you might acutally lose territory you won last week and when you want to take it back again, the landscape totally changed (buildings collapsed, different enemies, different routes to take) so that it feels fresh everytime you play it.

There are huge possibilities right here.

Or an AI, a teammate of your squad for example, gets smarter because the data of millions of gamers around the world is gathered in the cloud. The Milo demo was built for this. Let Milo learn millions of voice commands and accents, because of the cloud. Use this to improve your actual game experience. Yell "cover me" or "snipe them" and the squad members actually do this and not because you mentioned pre-set commands, but because they heard this command somewhere in the world before...

I can't believe you guys fail to see the potential here. This will be as big as multiplayer gaming on consoles.

ROFL.....too funny.

well structured arguements you have here.

It is a proper response to something that is simply out of touch with reality.

Cloud Computing is a new fangled marketing phrase for Client/Server.

Client/Server applications are what were used when dumb terminals were hooked-up to mainframes or Unix servers. Later, PCs were hooked-up to them. The dumb terminals or PCs then ran applications that essentially were on the server or mainframe. This allowed the far more powerful servers or mainframe to do the majority of work.

This past decade or so, Web-based applications have been doing a similar thing. It once was, ActiveX or Java were necessary to run applications on the server to provide the UI. The stub application then sent data up to the server. Today, Web-based applications use scripting languages to present the UI in the Web-browser but the apps still send data up to the server to get processed. About 7 years ago Oracle and Microsoft started working on competing standards for remote computing, though essentially they were the same thing, Web services. A Web service is an application that runs on a server and can be remotely called via any type of application. The majority of functionality can be provided through this Web service, or various feature sets can.

With the Xbox One, some aspects of the game can be housed on a server and accessed via the game on the console, much like with Web services. The game sends data up, it gets processed, and the results are sent back down to the console to present on screen. There are a lot of a features to a game that can be off-loaded processes. Running NPC AI, for example. Why waste processing power on the console to run NPC AI for characters not on screen? Off-load that to a server, let it run there, and access it when the user actually needs it.

What it won't be used for, not in this generation, will be to do real-time rendering.

It does not play the game for you.  The Drivatar would play the game in place of a NPC/game AI. 

Basically what the Drivatars do is make it so that you can play a game by yourself and your friends Drivatars will provide realistic drivers to compete against.

To summarize:

Microsoft fans: TEH CLOUD IS DA BEST THING EVA
Sony fans: TEH CLOUD IS SO DUMBBB
Real world: It has some cool functions that could prove interesting, but is unlikely to be bring much more than improved AI to gaming for the next few years. In several years time it will be a big deal (very big deal), right now it's mainly PR crap with some truth thrown in.

I don't see why this isn't feasible now? The capability to do this has existed for a long time. Everything you mentioned sounds like a simple evolution of what we have in the MMO space already and all indications suggest that's where it was heading regardless.

Isn't it funny that you say this is out of touch with reality and the next comment quotes me again with "I don't see why this is feasible now?"