Updated: The future of the Xbox. Hyper-V?

With all the arguments about raw power I think one major thing is being overlooked on the Xbox One.

Hyper-V and the Azure Cloud

With this technology, you could theoretically run an Xbox OS on any computer with equal or greater power. The Hypervisor would be able to translate the actual usage to mirror an exact Xbox system. I guess we will learn more in BUILD with how much low level access the developers will get. But the potential is there.

This coupled with the Azure Cloud distributing model, I think gives the Xbox an amazing amount of flexibility and advantages that may be hard for anyone to compete with.

You may be able to see the X1 in the near future using many different components that we are not seeing today. Anything non-latency specific can be directed to the cloud. New components can run off the Hypervisor and not interfere with the actual game system.

3rd party consoles may even become a possibility.

Anyway, I think using a virtualized model for the new X1 is what is going to allow this machine to have the most flexibility out of all the consoles on the market today.

With everything in the tech society moving to the Cloud and distributed computing. It would make a lot of sense to design your system in a way where it wouldn't be hindered by the hardware sitting in your living room.

What do you guys think?

Update from post at Anandtech that supports my theory:

Arguably the most interesting thing in all of this is the dual-OS + hypervisor software setup behind the Xbox One. With the Windows kernel running alongside the Xbox OS, I wonder how much of a stretch it would be to one day bring the same setup to PCs. Well before the Xbox One hits the end of its life, mainstream PC APUs will likely be capable of delivering similar performance. Imagine a future Surface tablet that was capable of doing everything your Xbox One can do. That's really the trump card in all of this. The day Microsoft treats Xbox as a platform and not a console is the day that Apple and Google have a much more formidable competitor. Xbox One at least gets the software architecture in order, then we need PC/mobile hardware to follow suit and finally for Microsoft to come to this realization and actually make it happen. We already have the Windows kernel running on phones, tablets, PCs and the Xbox, now we just need the Xbox OS across all platforms as well.