Sounds to me like he's clearly referring to compute offloading. I'm more than ready to see this demo-ed. Also talks about 343 being focused on Halo. If Halo ends up being one of the first titles to put it to use, it would be pretty sweet.
@XboxP3 Will we see full cloud-powered games? I mean, using all the power of the cloud....
Phil Spencer @XboxP3
@joe_GeoThor Given local CPU/GPU likely see XBOX One games using local compute but we have things incubating that are primarily cloud based.