http://youtu.be/TD_b6t_LnNI

Yes and no. Xbox One cloud will be limited in a way because the player must not feel lag so it cannot be use to stream part of the screen. Where on PlayStation Now, lag will not be a concern since it's a streaming service an customer will be prepared to it.

On Xbox one the cloud can be use and will certainly be used to prerender some elements but the graphics will still be limited by the rendering capabilities of the Xbox One.

let say that the Xbox One can render (those are not true numbers)
1000 objects on screen at 1080p 60 fps
and ps4
1500 objects on screen 1080p 60fps
This is when the console is only use to display but game need many more aspect
lets say we add an ai to every of those objects
now the xbox one can display
200 objects on screen at 1080p 60 fps
and
300 for the ps4
but if we offload the Ai calculation on the cloud both can in theory use there display capabilities to near there full extend.

In reality offloading Ai alone will not be enough for the One to catch up the rendering capabilities of the ps4 but many other things can be done async using server calculation such as some parts of the physics and lightning effects etc... And if used well the Xbox One can really benefits from it an can even beats the ps4 in some games where some features use much off the system rendering capabilities for other task. But for this theory to become reality you will need to have third party dev to rework there engine in a way to use the cloud on the xbox one while using system resources on the ps4 which will not happen soon IMO.

Where, I think, the cloud will be use nicely in the future is in some features like maybe real time growing forest. But this kind of feature will be done most certainly only in first party project an even if this feature is used in 3rd party multiplat project you would not see the xbox one version having better graphic because those feature will probably only be drop on there ps4 counterpart.

Eh?

That is a hell of a presumptions and you are utterly ignoring the enormous hardware cost of that. To achieve this, the cloud would have to be a state of the art super computer with incredible bandwith. It would have just been cheaper to make the Xbone more powerful than have a computing cloud.

I think the cloud will sooner or later lead to some kind of religious "cloud power war", between "cloud power believers" and "cloud power atheists".

The cloud power believers will never stop believing in "the power of the cloud". They're absolutely convinced that someday, the cloud power messiah will come around and fulfill the ancient Microsoft prophecy of an inferior console becoming 50 times more powerful, by means that they cannot even comprehend. The more time passes, they might become slightly irritated by the fact that there is still not the slightest hint of it happening, but they so strongly believe in it that they can never be convinced otherwise.

The cloud power atheists on the other hand do not even believe in the power of the cloud. They'll be saying that "the cloud" is just a myth, very closely related to an even older concept called "dedicated servers". They'll say: "If there really is some magical "power of the cloud" that makes the Xbone 50 times more powerful, why is there still not the slightest proof?" And they'll be pointing out the theodicy problem: If there really is an almighty cloud power god, why does he permit the manifestation of outdated 720p graphics?

It's easyier for people to say it's not possible because it's from Microsoft... the technology isn't exclusive to MS though and sooner or later it'll be widespread until it reaches Sony then people will act like it's some legit new thing. Useless to argue in these conditions.

I really want to know how the internet helps pump out more pixels and boost performance. If rendering graphics and such could be dumped off to your bandwidth, then my low level laptop should be able to run Crysis 3

Well, its obvously not a good deal cause I was comparing Japan's plans and Canada's plans and Canada has terriable plans. The good thing with this ISP is that they don't really care about the datacap but thats pretty much my plan, just add $10 more for home phone and thats how my I pay for my service provider... The only reason I don't switch is cause to another ISP is cause these guys don't care about the datacap and won't fine you if you go over them and if you are a customer with them, you can use their wifi services around Vancouver for free which is virtually all coffee/restraunts/stores which is good for having internet for my phone/laptop

We will see it first in Titanfall. The first game to use the cloud.

Actually latency hurts Sony more than cloud compute.  Cloud compute can be used for background task that do not require constant update like the graphics pipeline.  By taking over those task, this can free up resources to push out better graphics.  People only think about graphics when it comes to a game but there are many things a game engine does and a few of those processes can be offloaded.

Also there have been development on doing raytracing server side.  There is a project intel did with wofenstein where they use cloud compute to ray trace the games graphics and stream it to a PC.  This is the type of cloud compute that MS is stating they will be able to accomplish.  Here is a link to the article and the youtube video.  There are a few advance graphical techniques that can be done server side using cloud compute to deliver graphics that cannot be done on current consoles today.  This might be something in the future once someone put the effort to make a game using cloud compute.

video: http://www.youtube.com/watch?v=XVZDH15TRro

dead rising 3 and forza use it