Microsoft has now reversed its plans to require an Internet connection for the Xbox One to function. Used games lending and trading also won’t require management via Microsoft’s cloud-based licensing transfer system. That would suggest Microsoft won’t see the same demand on its Xbox Live servers as previously anticipated because regular connections are no longer mandatory, but that hasn’t stopped them investing heavily in the cloud.Late last week it was announced that Microsoft was the company behind Project Mountain — a planned $677 million investment in a West Des Moines, Iowa data center. The reason for the investment? To primarily support Xbox Live and Office 365.That’s very good news for gamers who intend to pick up the Xbox One on launch day. You may remember the pain gamers went through when the Wii U was launched and required a day one patch. It took hours and left your brand new console unusable during the process. Microsoft is planning a similar system update at launch, and it will also have to support game activations, meaning its Xbox Live servers will be kept very busy 24/7 for the first few weeks at least.The investment also points to Microsoft’s continued focus on cloud-based services for its next-gen console. Microsoft wants the Xbox One to be your entertainment hub hooked up to HDMI1, overlaying content from your cable box, offering a growing range of streaming services, as well as pushing download games and the multiplayer features of the console. All of those require a reliable and fast connection to the cloud.