I think the problem with Cloud gaming is the latency. And the network requirements push it to solving a problem for a very small subset of users (games which where latency doesn't matter can usually dont need cloud gaming).
Yes. All I want is a latency-optimized EC2 (I'm no twitch gamer, <= 25ms is fine) instance with a decent streaming client on pc/mobile. Let me decide to install steam or epic or origin or whatever and use my own stuff.
This is where NVidia went wrong. They're basically providing that sort of thing, but wanted to present it as their own game service as though all the other storefronts were just backend plumbing. Not a bad consumer experience, but also not what publishers are licensing when they stick their game on Steam.
I believe that's the joke. I wish latency was getting better but every new thing that comes along moves the acceptance further away. Many don't even notice 500 ms delay from click to something actually happening. On my Atari I often had the feeling something started happening before the mouse button was all the way down.
It's no better than my normal broadband, which is 10 to 20ms, but I suppose you're right. I've streamed games with up to 100ms without much issue with input lag so I suppose that would be fine, although 100ms would probably be too high for some types of games & multiplayer.
I think you're missing the point: Yes, multiple pieces of equipment in the process adds some ms in between input, computer processing it, and screen outputting it.
The issue here is how much will ping time add to that when streaming a game. Consoles hover in the 100ms are depending on game. PC's it's highly dependent on video hardware, but I good gaming system, display, and keyboard/mouse will be around 70ms.
The issue of streaming game ping ms in part comes down to human reaction time, which averages around 200ms-250ms. Given this, you want a ping time that doesn't add enough latency to the setup to put you above that 200-250ms reaction time, or you start to perceive more noticeable input lag. Given 70-100ms baseline, you want a bandwidth ping absolutely no more than about 100ms on top of that.
The math squares with my personal experience as well. I've played a few streaming services, and when my ping gets to the 100ms area I start to notice a little difference. It's often sill playable, but if it gets higher it can be very distracting.