Some of you are only looking at this in terms of destruction. The power this allows goes far beyond that
yes it can.
Everyone thought "the cloud" was some joke because they didnt understand the tech behind it.
To understand the cloud for gaming you need to understand it for how its used in the non gaming world.
even to 3 modeling which could be gaming or not. down to crunching numbers for scientists and research.
To put it short. the cloud is giving people the chance of a life time in certain situations to use a SUPER COMPUTER. these computers were only available to research students/ scientists.
for the most part.
Now because of this cloud computing tech(not just MS, but MS seems to have a nice lock on it right now with Azure) even the regular man can have that extra boost in power to crunch the numbers, while your physical machine in front of you does the rest of the work. possibly giving you more ram/more processing power to do other things. The further we go along and the better they get with this(devs cant be afraid to try new things). This could really take us into the next gen for ALL games, not just consoles. but pc games too.
the hell with the FPS wars. i want better AI, i want more physics in all games (sports especially).