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Why don't MS offer dedicated servers to 3rd party MP games?

Interesting tangent - Id like to understand how 'interactive' cloud compute could be as I just dont see how you can really do anything thats user-interacted without having the massive issue of lag.

I've said it before in this thread - MMOs do it... although less is going on (not complex physics, etc.)

Also check out this video, which shows cloud-based lighting at varying levels of latency:

https://www.youtube.com/watch?v=aiWdJxshWMM
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