[user104658]

Controller latency simply means that game streaming doesn't work well. It doesn't even work well across gigabit LAN with close to zero latency. It's not like video or music streaming... Even the most miniscule of buffers that a "layperson" might not even notice, someone who has been gaming for years will "feel" instantly. It feels unresponsive and sluggish. This won't be any different because connection speeds mean there is NO WAY for it to be different, no matter what the tech is on their end.

To be honest I can't see 100% cloud based games working at any time in the near future, even as connection technology increases. There's always going to be that almost imperceptible data transfer delay that in fast paced games makes all the difference.

"Cloud power" for things like complex AI and physics processing? Yes, I can definitely see that becoming a thing, and it has the potential to be amazing. Imagine going up against realistic AI enemies! Or I can even imagine in the not too distant future, AI NPC's you can converse naturally with, which would be a game changer. And the latency wouldn't be an issue as it'd only mimic real human reaction times. But all of the direct input processing simply has to happen at a local hardware level for responsiveness.