Sorry, but i'm not so stupid Microsoft. Games use big volume of information at verry fast speed. If you compare the lattency and the speed of the CPU cache memory and ram memory with the internet connection speed and lattency you will see that only thing you can get is an extra low speed storage. If my xbox process an information in 10µs and your servers in only 2µs, on a regular ADSL connection the latency is ~50ms, so what is better, 10µs or 100ms (50ms upload+ 50 ms download + 2µs processing)? Cloud computing can be used only where big processing CPU is required and the output information is not so big.