"It could be more complicated things like rendering full games like a Gaikai and delivering it to the box," Penello told GameSpot, referring to Sony's still-unproven solution for prior-generation compatibility on PlayStation 4. "We just have to figure out how, over time, how much does that cost to deliver, how good is the experience."
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"In the world of things I wish they had not shown at the Company Meeting because I knew I'd be asked about it later, put that at the top of my list," Penello told Polygon earlier this week at an Xbox One demo in New York. "That is a good example, in certain circumstances [the cloud streaming] worked really awesome."
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"It's really cool and really problematic, all at the same time, insofar as it's really super cool if you happen to have the world's most awesome internet connection. It works way better than you'd expect it to," Penello said. "So managing quality of service, the tolerance people will have for it being crappy. Can you imagine, in this day and age, with the bad information around, and we can't control the quality of that experience and make sure it's good, or have to tell people they can't do it?"
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"It was a grand experiment, I know we did a lot of work behind it, and we said this is one of the things where the network just has to get better before we can do it," he said. "When that happens, you're going to have a really interesting conversation around that, can I actually run Xbox One games that way as well."
As for Sony's plans to use its Gaikai service to stream older PlayStation titles to the PS4, Penello said, "I'll be really interested to see how our friends in the Bay Area [at PlayStation] deal with this problem. But I can tell you, it's totally possible. We like it, we're fans of the cloud. We're not shy about that."