Is this cloud as in streaming or cloud as in offloading calculations to a server? The latter hasn't really been explored much yet, so it'd make sense from that angle.
This sounds like running games in the cloud. Pretty sure this is also related to Square-Enix previous comments on making cloud native games.
"The arrival of streaming as a new distribution platform will not only further accelerate the transition from the traditional disk-based sales model to digital sales, but could also drive significant change in business models themselves via the adoption of subscription models, for example. We are especially hopeful about the major potential cloud streaming services possess to expand markets in growing regions such as India and South America, where there has not been significant adoption of traditional game consoles. As telecommunications infrastructure improves, cloud streaming will directly provide customers in such markets with playing environments that eliminate the need for traditional consoles or PCs.
From a game development perspective as well, we will strive to create gaming experiences only possible in the cloud, meaning developing cloud-native or cloud-centric games.
For cloud streaming to enjoy mass adoption, there will need to be innovation not only in terms of distribution, but also in terms of gaming experiences. We believe that new gaming experiences that would have been impossible on traditional game consoles will be a major driver of cloud gaming adoption.
Our efforts to develop cloud-native or cloud-centric titles are already underway, and we will strive to create new gaming experiences. We naturally face a mountain of challenges, including technological hurdles that must be overcome and issues with telecommunications costs. However, we have no doubt that cloud gaming will represent a major trend over the next five years as we enter the age of 5G and that our strategies for flexibly responding to that trend will be key. We intend to stay on top of new developments and leverage cloud gaming to drive new growth."