He kind of contradicts himself a little in this article, which makes me wonder if it's just a promotion for the cloud service.
At first he says that they haven't harnessed either machine, meaning neither the PS4 OR the XBox One was pushed to the limit. Basically saying that neither would have an advantage over the other.
Then he speaks hypothetically stating what COULD be possible on the cloud (tree physics, etc) and why it might be an advantage. However, he it immediately follows up by stating this is possible within the machines though.
He basically closes by saying if they unload these processes to the cloud, he could spend more time working on "dynamism" which would be more prevalent on XBone.
The whole article is contradictory, if the machines aren't even pushed to the limit, why would he need to unload processes to the cloud? Additionally, although I admit I haven't researched the cloud enough, there are some points that seem unclear. He is speaking physics and other equations. Are these services already created and available for developers to use in the cloud or does he still have to create them and allow the cloud to do the processing? Because if he's still writing the software, the development time he is talking about seems negligible.
A lot of unanswered questions.