Xbox’s Marc Whitten wrote in an email to the media after the press conference, “We are making it easier for you to sign into your Xbox Live account from any console at any time to access your game saves and full profile, including items such as Microsoft Points to make purchases, Achievements and friends. Cloud storage will allow you to enjoy the same great Xbox Live gaming experience even when you’re not in your own living room by giving you the option to store your ‘game saves’ securely in the Xbox Live cloud instead of on a portable memory unit or your console’s hard drive.”
How important is this? Cloud storage will allow players to log into their account from any Xbox console, without any gamertag recovery. This update will be activated in the Fall Dashboard Update later in 2011.