Interesting and clear explanation, though nothing new other than they will use an already existant network of data centers (Azur). Cloud computing is an interesting idea, but with obvious problems in the implementation, cost being the main problem.
So, after reading that blog entry there are still many things that have no answer:
- I felt a treated like an idiot by the article at this point. "Having thousands of servers is expensive, but using Microsoft servers will be a lot cheaper".... Ein? How can Microsoft support this in an unlimited way? I mean, the costs are there and are extremely high anyway. Not for being called Microsoft they will come free, right? So, are we supposed to think Microsoft will operate on the loss with the cloud network to gain an advantage over competitors through exclusive developers? I don't see how they can handle more servers with more power with less cost. something is wrong in the equation. I bet someone needs to loose money in the process, be it Microsoft or... the user.
- What are they using the cloud computing for in their game exactly, other than handling the matches? Are they going to use cloud computing for physics? AI? They tease things but it would be nice to have practical examples. It will hardly be used in graphics, mostly in multiplayer games AI or stats mining (such as in Forza 5).
- When a company decides to stop supporting a game, you won't be able to play anymore, right? Even if it was a single player game. That means that cloud computing (at least for now) won't be used intensively as it could, because people are not ready for this kind of consumption of entertainment. Think of The last of us using cloud computing for the AI. The moment the server is down you can't play or you have a lesser experience. Who wants that now?
To add to this, I think this vision is very USA-centric. People all around the world doesn't have connections that good for online playing. Even now, I have terrible problems now and then to set up and play a multiplayer match, even with dedicated servers. Considering the implementation of cloud computing for other than handling multiplayer matches or stats tracking seems to me a bit risky by now, even if they like to full their mouth with marketing saying it will enhance your games.