One of the many pieces of information that Microsoft revealed on Tuesday was that Microsoft has added 300,000 servers to Xbox Live, up from the initial 15,000.
Now, General Manager, Matt Booty talked to Ars Technica about how this will improve game play. He said that the improved cloud architecture will speed up CPI heavy chores that are not dynamic on latency- for example lightning and cloth dynamics- by pre-calculating them before applying them to a scene.
To make this possible, the cloud server will provide three virtual devices for “every Xbox One available in your living room.” It will however be up to game developers to manage transitions between console-only and cloud assisted graphics as the first few seconds of lighting in a new scene will be handled by the console before servers can take over.
Because of this, many titles may look better when online but you will still be able to play them even if the internet connection is lost.
Source: Ars Technica