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I think it's inevitable it goes there. Right now the level of detail and quality of games is limited by the console/PC hardware you're playing on. But with the splats they can render the whole game's world in a massive server farm at Hollywood Movie quality. I imagine there might be some balance of splat and traditional rendering technology since not all objects will lend themselves well, but this might be truly transformative.

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Why would you limit one to your local hardware and one to a cloud infrastructure?

Both can be done locally or on cloud? the comparison point becomes moot if you change the parameters that drastically

There wouldn't be any cloud. Splats are still local, but all the lighting and texture are pre-rendered. The problem is they're not interactive, so they'd be good for a lot of the environment but your main character and other things that need to be interactive would need to use a different approach.

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