Some questions.

Potentially will this be hidden behind the Gold pay wall ?
What if web connection is dropped, will a game heavily reliant on cloud be unplayable.

I live in a country with data caps.
However, Microsoft struck a deal with most internet providers here to have the data captured over Akami for Xbox Live, made data-free so it doesn't effect your data caps, internet providers then advertise the "feature" to draw in customers. (Providers like Internode, Westnet, Netspace, iiNet come to mind.)
They also have a similar deal with Steam, but Sony is pretty much missing from the equation.

So if you have a data cap, pressure your internet provider or look for alternate providers that have such services as data free or better yet, unlimited data.

The main issue I find with cloud computing is one of game longevity, there are people all around the world who enjoy pulling out a 15-20 year old console, plugging it in and having fun, if games become reliant on the cloud, then essentially retro gaming could be killed if it doesn't have an offline mode, because lets face it, what company is going to keep gaming servers up for several decades? It's a cost burden and that's not a good thing in the long term for a business.

Really impressive. God to know Microsoft have before the gen started been allocating server farms for this. I exopect this to be pretty common on first party titles on Xbox One in 2017 onwards. Big jump in realtime.

Potentially.

It'd be just like playing an online multiplayer game, except it'd pause when booting you. Once the connection is reestablished you'd jump right back in.

Or more likely devs would program an alternative offline mode. This would allow gamers without internet to still enjoy the experience, as well as offer an alternative when the connection is dropped. Visuals and performance wouldn't be affected, but destruction physics would.

Nice tech demo, but given that one powerful rig was running at 2fps imagine how many servers have to run to maintain 30fps for a single world.

I guess it's only economical for a multiplayer game, where you have a dozen players blowing up the same world and sharing the computation.

This cloud thing it's starting to sound like DMR is disguise xD
I don't believe they can achieve such greater performance difference just with the cloud, atleast not in near future. Latency issues, same old problem, that is here to stay ~

Its certainly impressive. But I agree with some of the previous comments - I dont know how close it is to real application. I still sometimes have slowdowns and issues when livestreaming so I dont know if this would work for me as it is shown here.

But if MS were to get this going, and they are able to get good streaming without any problems then it may very well become a factor. I will be interested to see how well the Playstation Now does and whether that works well or has issues with the streaming.

My latency on Tianfall with Western EU Azure Cloud Servers is 17 ms. I know because the game tells you your latency on te main menu. Thats way better than anything else last gen. Azure is so much better fo Cloud. 

I just don't see it being real. As in useful in real life I guess you can say

They've promised a bunch of things, partly to convince people that in the near future the Xbox One can do everything visually that the PS4 can do... and maybe more with teh cloud

They even had the balls to say 4k lol

They can't seem to do 1080p too well right now

So they are gonna jump from 720p (or 792p lol) and add cloud, then BAM 4k son?!?

Like putting a wing on a Honda Accord and saying 500 hp imo

How is that a question? I'd prepare my wallet unless they suddenly decide to let YouTube past the golden gates.