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theprof00 said:
...

gaming merchandise will always be available. Well, not always.

If this thing comes out this year, then I predict at least 2 more console generations. But in 15-20 years, when every household has a 10MB connection, this cloud processing will be the only thing there is.

In 10 years, you'll be able to fit an high-end PC system of today in a 5W power envelope. A laptop or desktop under $300 would be able to play Crysis-level graphics. Since I believe game graphics will not progress much beyond today (too expensive), all the processing power any household needs will be very cheap, in a very small form factor and everyone will have one. Why would anyone then pay a subscription?