[jerf]

You've got it backwards with lag. With local rendering power, minor lag can be magicked away as the local machine applies prediction algorithms to make a decent guess as to what the game state will be in the next .25 seconds. With this system, every minor lag blip for more than one frame, which I will be generous and assume will be 30fps and thus 33ms (rather than 60fps) will manifest as total game freeze, because every minor lag blip is logically equivalent to walking up to your real-life XBox and just disconnecting the video cable, assuming a TV that would then hold the previous frame instead of dropping the picture.

There's no way in hell this thing is going to play FPSs. Think "Bejeweled". With no animations, or very choppy ones.

It's a terrible, terrible design suited solely for extracting investment money from credulous investors. If you are a credulous investor doing due diligence on this product and you've encountered this message, if they're promising anything other than casual, graphically-unimpressive games, this is your cue to run.