I think they actually said it was 4x as powerful when using Cloud, so this would actually be the same statement, just different wording.

They found out the ESRAM bottlenecks the One into outputting only 720P third party games.

You're not suggesting M$ would lie? Nah, that can't be it. It could increase powah by this or that, and Celedor's sig girl could deliver my pizza. Honestly, how can anyone prefer blondes. 'All that glitters...' W.S. 'MoV'

M$ may do better this time around. Relatively speaking. 1.5m isn't exactly Mt. Fuji. They don't have the RROD hanging over them at launch, an interactive interface like the Kinnect may appeal to the Japanese slightly more than the average Euro or N.Amis and it sounds like they have a couple Japanese made and oriented games coming down the pipe. The home console market appears to have shrunk as expected though. Nothing to do but wait and see. By mid-gen the cloud could be making a significant contribution.

The Japanese believe MS when it comes to a gaming console? LOL I mean they can try. ;)

  This gave me a good laugh for whatever reason! Thank you so much!

Actually the cloud, the infrastructure and the capability is here today as shown with the Build example.  The key is can MS make  it affordable and also gain revenue from it.  The main thing is that MS probably will have to bring the games first from their 1^st part studios to show if the cloud can be considered as a resource beyond dedicated servers.  Maybe the new Halo or Fable can be the example.  I believe with Titanfall release, MS has shown that Azure can be a platform for dedicated servers which should net them some marketability with developers and publishers to use the service in that capacity.

First, the AI were never suppose to be smart.  They are exaclty what the developer want them to be which is canon fodder.  What Respawn stated is that the AI runs server side instead of client side which when those routines do not have to be calculated by the client machine.  Anything that runs server side frees up resources on the client machine.

The problem with most of your points is the fact that we pretty much run a lot of stuff based on a online connection like Multiplayer games, MP only games and MMO.  There are millions of people that play MMOs where you are dependant on a constant connection and that number keeps going up not down.

They could have done dumb, simple AI with the One if they chose to.  It was just a way for MS to hype up the cloud.  And guess what, if Titanfall 2 comes to the PS4, they'll probably be using the HW to do it, not the cloud. 

You keep living that dream where EVERYONE has internet, and that internet is 100% reliable and fast.  And where people are just going to be okay with giving up their consumer rights, just so a company can make an extra buck or two, and I'll live in the real one.  The one where the console that didn't care that not everyone has internet and tried to take away consumer rights is getting stomped.

AI doesn't require that much CPU power especially the simple kind of AI that controls FPS bots.

Running AI client side, would also be quite silly since, it would have to communicate that information to every other client as well.

It only makes sense to run it on the client when offline. 

That being said, AI is very low intesive compared to everything else, Respawn could've easily made the Bots more skilled but the game was intended to be easy to pick up, so cannon fodder bots, or even bots at all were preffered over human combatants.

No. I mean the cloud is physically far away which means latency issues. The speed of light is kind of difficult to break, with the best theories saying it's impossible.