Thisnaturallyplacesrestrictionsonthemas acomputingplatform; computeresourcestend to be limited, in terms ofprocessingpower, memory, andpersistentstorage.
One biggie was the announcement that any and all companies looking for computing horsepower can jump on board its formerly-limited Google Compute Engine, part of the Google Cloud Platform.
There is processing done at the camera and on the XBOX, but the user must stand in a certain place in the room and games are limited to non-complex titles that take minimal compute resources.