said by cableties:
Xbox Live, PSN are already "cloud" gaming. There is storage on these services, downloadable games and add-on content
That's not cloud gaming. Any games or add-on you buy have to be stored on the consoles or some storage device attached to the console. The only cloud services they have is for game saves and profile saves. XBOX only gives you 512 MB PSN gives you even less. Which is fne for games/profile saves. Not good for actual cloud gaming.