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Latency is also critical for VR and AR

Latency is critical-path for VR not just in existing solutions, but fundamentally. Speed-of-light delays are sufficient to cripple remote-processing approaches to VR, so we won't see cloud solutions unless we're wrong about the fundamentals of relativity.

I wouldn't rule it out completely, though. There is some opportunity to mitigate latency, such as performing the heavy lifting remotely with local transformations on a simplified description of the scene to account for head movement and the like.

It would certainly be a much more complex solution that would still have inferior results compared to computing everything locally (just like cloud streaming now). Just that it's not "change the laws of physics" impossible to get to a workable implementation.

See also John Carmack's comments from 2013 on latency mitigation: https://web.archive.org/web/20140719053303/http://www.altdev...

critical but not impossible to fix. I can't find it but Microsoft published a video some time ago to realize cheap VR/AR headsets which do rendering in the cloud

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