There was an article about the hardware necessary to handle the processing of each individual game, and it boiled down to basically having a beefy computer in their service center than in you home.

http://www.eurogamer.net/articles/gd...article?page=1

I don't know how much I believe either way on this situation, but I certainly believe they would have to have pretty beefy systems running back at base to handle the load and rendering of games like Crysis. I have a feeling this'll turn out to be nothing more than a glorified Gametap or something.