True game streaming* continues to be a solution for an environment that doesn’t exist - a world where most people have excellent, reliable Internet connections, graphics hardware is hyper-expensive and is the limiting factor in game development, and mandatory upgrading of hardware is frequent.
In fact, we live in the opposite world. Graphics hardware that’s “good enough” is cheap and widely available. Most games these days don’t rely on pushing the envelope in terms of graphics hardware, both because the cost of developing the art for cutting-edge development is prohibitive and most customers prefer a well-thought-out “good enough” art style to hyper-realism. The lifespan of a PC or a console has never been longer, because there’s realistically little reason to upgrade frequently.
Meanwhile, most people in most places have flaky and erratic Internet connections (even in places where the connection speeds look good on paper) and game streaming continues to be the worst-case scenario in terms of cloud computing - it’s extremely large number of computations per user, and hence runs into terrible problems at periods of peak demand. It’s the polar opposite of the low-computation but high-volume traffic places like Google and Amazon normally deal with. If I have to wait half a second for an Amazon page to refresh I barely notice; if I have to wait half a second for the screen to refresh while playing a shooter it’s a ragequit moment.
The fact that a behemoth like Google may be getting into true game streaming is interesting. But it’s the equivalent of GM announcing they’re getting into the movie business or Disney saying they’re making a self driving car. Given the amount of resources they command, it’s perfectly possible they will revolutionize the business. They’re operating outside their wheelhouse, though, so it’s more likely this is another Apple TV.
*We need to be careful not to conflate true game streaming with services that allow people to play a variety of games for a flat fee per month. True game streaming means doing all the work of the game - graphics rendering, AI computations, etc. - in the cloud, with the user having essentially a dumb terminal.
A service that merely gives access to a variety of games for a flat fee doesn’t require any actual streaming at all, and indeed XBox Game Pass does exactly that on a conventional console.