Square Enix worldwide technology director Julien Merceron has said he believes that cloud computing will play an "instrumental" role in the next generation of consoles.
Speaking to GamesIndustry.biz, he urged the platform holders to embrace the technology for its future hardware.
"When it comes down to future hardware platforms, and official home consoles, I think its going to be instrumental," Merceron said.
"I think it has tremendous benefits. I don't see any good reason not to investigate for platform holders how they could actually think about cloud storage and cloud computing for their next platforms."
He added: "If you imagine platform that would basically have cloud computing capabilities, for example, then why would you eventually need to change the hardware? Because actually what you then just do is basically change the back end to be more powerful."
Last September, THQ CEO Brian Farrell said he expects future consoles to drop support for physical discs, resulting in lower hardware manufacturing costs, lower console prices driving mass market adoption, and no physical goods cost for game makers.
However, Sony Computer Entertainment's chairman Kaz Hirai suggested last week that disc-based consoles will remain the norm over the coming years, having previously said "there's always going to be requirement for a business of our size and scope to have a physical medium."