with the DME's able to directly access the display pane...this opens up a lot of possibilities. pre-computed renders could be fed directly out.
also, with the 4 DME's, there looks to be 2 "pack" and 2 "unpack"...so compression is going to be ridiculous, as well as de-compression of data. depending on what compressing techniques they use, this could turn mb's of data into mere kb's.
This could be really big in the coming years, as first party devs start to really push the envelope of what's possible in a cloud-compute scenario working together with local hardware. physics, AI, draw-distance, texturing (to a point) could possibly be handled outside of the local system and free up that space to enhance the performance of the hardware itself.
latency IS an issue, but if the compression is good enough...it could be brought down in a lot of cases to 100ms...which would work out to...about 3 frames in a 30fps game or 6 frames for a 60fps game. Look at it this way...a human muscle reacts in 200 milliseconds.
Now, this tech wouldn't improve IQ/frame rate/display resolution...but it would make the game a hell of a lot prettier i'd imagine. better textures/AI/lighting...freeing up GPU cycles and CPU cycles to optimize other aspects of the game.
Good move Microsoft...future-proofing your console intelligently.
Now, those worried about broadband connection...congress is trying to pass legislature that would bring 1GB/s connections to most homes by around 2015. average broadband speeds have also increased at a level of ~25% YOY...broadband/high-speed internet is penetrating even the most local communities now, as the cost of investment in the system is not only subsidized by most governments, but the cost itself has bottomed out as the tech has gotten much better and the materials have reached a mainstream level of production.
This is one hell of a gamble...but it's one that theoretically will pay off within the first few years of the console's existence. Expect mostly first-party developers to really push the envelope with this tech, with 3rd parties following suit as the implementation becomes available. There needs to be some decent coding breakthroughs before what I envision as the future of cloud computing comes to pass. Devs in first party will have the advantage here, and Microsoft is willing to make these investments. It's a good day to be a gamer
