In what way? For a local upgrade, as I said, it's fine. The moment you go trying to turn all these boxes into a cloud resource, you hit all the issues mentioned. the patent covers both uses.
Here's what the patent has to say about close and far away network resources:
in terms of network distance, a network computing device that is "close" has relatively low latency or hops, and one that is "far away" has relatively large latency or numbers of hops. Relatively close supplemental computing devices may be able to provide services at a nearly real-time speed (e.g. processing real-time graphics and sound effects), while relatively far away devices may only be able to provide asynchronous or supplementary support to the events occurring on the console (e.g. providing for weather effects in games, artificial intelligence (AI), etc.).
The way I see it, using the computing devices that are "close" means a friend bringing his own NX to my house with one TV and an existing NX connected to it. He simply connects his NX (home console, handheld, tablet, or whatever Nintendo wants to form up their NX family with) to my home network and it sends the audio/video stream of a local multiplayer game to my NX, which in turn composites the incoming stream with its own audio/video and sends it to the TV.
This would allow for much better IQ in local multiplayer games, specially if it's connecting to a 4K+ TV. Plus, if the "guest NX" is a handheld, my friend can use his own customized touchscreen button layout, customized characters, etc. without having to rely on a cloud service like PS Plus.
This feature has been rumored lots of times for the NX from numerous different sources AFAIK.
While it may not make a lot of sense for a person to carry his home console box to his friends, it would be a spectacular feature for e.g. a tablet-console.
Nintendo may be planning a handheld that has similar processing capabilities as the home console to be released later in the platform's life cycle.
As for the "far away" compute resources (the actual
cloud features), it's just stuff that host servers already do in online games with Player-vs-Environment (e.g. Destiny): weather information, NPC behavior (AI processing..), map/landscape deformations, etc.
We've had that for years, to assure a coherent experience between gamers playing in the same map.