After hearing you could bake normals with a cage in Belnder 2.7+ I decided to give it a whirl. I've been critical of both cycles and Blender normals for game workflows. I get to eat my words now. Which is fine by me if I don't have to use xNormals. Nothing wrong with xNormals, but exporting high poly obj's is a pain. See Daiali Felinto's tut on baking. http://www.youtube.com/watch?v=jOMnNb82DRI
It's quirky since you have go back and forth between Blender Cycles and Blender Render to check the bakes, but still better than highpoly obj's to xNormals. It's a simple test, but the results are very clean, i.e. no unwanted noise or artifacts. xNormals forte was the fact you could use a cage to cast the rays only as much as needed. This means no corners, nooks and crannies to get messed up by rays shooting past where the point where they pickup the wrong surface. Layer 1 = lowpoly, Layer 2 = high poly, layer 3 = cage, Layer 11 = lowpoly with baked normal map, layer 20 = light and camera. Look Ma no seems!