Microsoft has announced that their upcoming game console, the Xbox One, will feature unlimited cloud storage for both game data and "entertainment". The feature will be available to all Xbox Live users on the Xbox One for the first time, not just those with a Gold subscription.
Xbox Live offers Xbox One unlimited storage space in the cloud for all Xbox Live members to store numerous types of Xbox Live content, including your profile, games, Achievements and entertainment. This content is stored and saved in the cloud so you can automatically access it anywhere, anytime, no matter where you are.
It's not quite clear at this stage what Microsoft means by "entertainment" as we can't imagine they'll want users uploading terabytes of Blu-ray movies, but it could refer to the console's in-game screenshotting and video capturing capabilities. However you'll still be able to upload an infinite amount of game data, giving you - as Microsoft puts it - an "unlimited sized" hard drive to store everything on, complementing the 500 GB internal drive.
The Xbox 360 had a mediocre cloud storage limit of 512 MB for game data, which isn't really enough to store your entire gaming profile including all your saved games for the lifetime of the console. With Microsoft's efforts to improve both their Azure cloud platform and SkyDrive, and with some companies such as Flickr offering as much as 1 TB of free cloud storage, it's not hugely surprising that going into this next generation of consoles we're seeing significant improvements to online services.
Since its announcement, the Xbox One has copped a significant amount of flack for various features, some, like the infamous 24-hour online requirement, have been removed for the final version. Closer to the actual release of the Xbox One, Microsoft is trying hard to improve the public's opinion of the console, and features such as unlimited cloud storage are a step in the right direction.