Despite the suggestion by some that it can all be done in the cloud, the reality is that local compute power continues to rise and when coupled with bandwidth caps, this makes things more than a little difficult in the near team.
Sony as we have seen is moving in the other direction, but it is all about striking balance and we are not there yet. Still they additional power provided by local compute, meaning a new console will be too tempting for it not to be used and that will lead to the next console system.
Read more here.