I always thought the cloud gamming is really just a way to move gammers to "subscriptions" instead of one time purchases, in the end milking more money and taking more control from them just like Adobe did with their creative products.
Microsoft has been successfully charging subscriptions to millions of players every year without needing to run games in the cloud. Cloud gaming is a play at capturing revenue from people who aren't willing to shell out $300+ for hardware and $60 for every AAA title they want to play.