Erm... "DRM" ("digital rights management") just refers to policies that prevent stuff like used games. It's cloud/Azure/servers that they're talking about assisting games, not DRM.

: A great example is Forza5 (since
: it's the only real game showcased). Elements of the game disappear during
: it's play. Trees suddenly appear that weren't there before and then
: disappear and reappear. Textures Clip in and out as do shadows. And this
: is before the console even reaches the E3 public!! Not only is it very
: distracting, it forces requirements on ISPs. Cloud is meant to store
: shared files on servers to be downloaded later. Not to be broadcasted to
: millions of people/players all at once. These files that are being shared
: in games (tree, code, etc) ARE NOT SMALL FILES by any means.

If they were experiencing graphical popping, I guarantee you it has absolutely nothing to do with cloud processing. Streaming graphical assets over the internet is, as you note, not exactly practical. If they stream them from anywhere (which some games might not have to do at all due to the size of the RAM pool), it'll be from a disc or a hard drive.

: If games (like Forza or Halo) are forcing consistent
: updates/uploads/downloads in the background (or not) then it's going to
: result in higher internet bills and less buyers. We already have players
: lagging when they have great connections. I have excellent connection here
: I live and yet I've experienced lag as well. That's just going to increase
: with more files being shared on my network.

Actually, it might get a lot better. If there's one major benefit of giving developers access to Azure, it's that dedicated servers could get a lot more common. Poor connections happen because your games on XBL are hosted peer-to-peer; even without lots of stuff happening on their network, random people on XBL tend to have laughably bad upstream bandwidth for game hosting. Servers would help enormously.

: And what about the security of Cloud Processing? Sure, MS has excellent
: encryption for their servers. But they to have been hacked. Not on the
: level of Sony's but a hack is a hack nevertheless. The closer we get to
: strictly wireless internet and the more we share over the web, the easier
: it gets for Hackers to steal information. Even tough it's still pretty
: young, Cloud encryption has proven it anything but secure. So who's to say
: that a hacker won't piggyback on a game 's cloud file and steal my
: personal information from my XBone? Don't tell me it's not possible.

It's not like your console isn't already hooked up to the internet. And if you're like most people, the really sensitive personal information is more on Microsoft's already-existing account servers than your console. Nothing much changes, I think.

: So you care about the game experience NOW more then later? Nothing wrong with
: that. From this day forth, you are obligated to NEVER touch a used game
: ever again. Even if you already own/played it. I don't care how much fun
: the game is, where how long it's been in your family, nor what how much
: goo your friends/family said it was. You only care about New Games .

: Why stop there? from this day on, you are to NEVER play with, touch, or use
: anything that has already been played with, touched, or used again. You're
: not even allowed to look at anything used again. That includes your
: eyelids for they are used as well. Learn to hover around and go ahead and
: pluck out your eyes. No need to eat for that food is not new either. Need
: to poop or pee? Too bad. Hold it in because your private parts have been
: used already. Grow NEW ones first. Just remember that you have to grow new
: ones each time you need to use the restroom. Oh and each rest room needs
: to be new as well.

: I was exaggerating there of course but it was to prove a point. New is not
: always better.

I'm not sure you got Kal's point. It was more "I want to go have fun right now regardless of potential consequences in the future" than "new is better."

: Fifteen years from now NO ONE will be able to play
: Halo5 or any other XBone game because they will require a internet connect
: and dedicated servers for those games. That means new developers will not
: be able to go back and experience what made the 8th generation of games so
: much fun/great.

Well, maybe. Concern that this could happen is encouraging me away from Xbone, but I expect the probability to actually be somewhat on the low end. A major benefit of systems like Azure is that they can allocate easy-to-use VM's to host stuff whenever necessary. Unless they were total idiots about establishing their codebase, there would be nothing that would require perpetual updates.

Xbone *might* receive good long-term support. I'm not sure enough about this to feel completely comfortable buying an Xbone (especially since I wouldn't be too shocked if Microsoft shut things down anyway out of corporate supervillainy), but I wouldn't be surprised.