For AI, it's mostly machine learning that's attractive today. physically based animation will probably be the next big breakthrough to finally reign in the increasingly burdensome costs of asset production. It's been around for years in various white papers, but it's only recently starting to show up in commercial products.
Cloud is simply what it is in other media: having your device be a thin client that the developers/hardware manufacturers deliver your media to. I know it's a thorny topic for enthusiasts, but it's very likely in 2 decades' time that most players won't be using a dedicated console nor gaming computer to play AAA games. "Netflix of Gaming" is too attractive a title in this multibillion dollar industry to not pursue.
Square Enix may not be looking to host those games, but it's had this tech around for a while and probably wouldn't mind being a middleman: https://www.destructoid.com/project-flare-square-enixs-cloud...
>so it's questionable whether the cost of moving into blockchain is reasonable for a company like Square Enix that can already rake it in via microtransactions.
TBF Square Enix's MO for the last 30+ years is to try and be on the cutting edge as a market leader. It may not make financial sense, but they've constantly made huge gambles. Some paying off huge, some bombing hard, and a few almost bankrupting the company.
As an engine programmer, I can't help but admire the ambition in an age where so many studios seem to instead rely on Unity or Epic to leverage that for them. But it also makes me wonder how long until the company flies too close to the Sun.