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The cloud simply was and still is a good way to replace centralised servers and less finely distributed computing (but it still is distributed computing and its concepts were already well known twenty years ago).
It cannot replace local computing for local tasks when low latency is required, like in geming, but it's perfect to manage online services in general and, in gaming, for massive online worlds. But forget about it increasing local graphics power, its lag would make gaming horrible if used that way, at most it could be used to pre-compute the look of some parts of the world visible, but very far away from the player character.



Stwike him, Centuwion. Stwike him vewy wuffly! (Pontius Pilate, "Life of Brian")
A fart without stink is like a sky without stars.
TGS, Third Grade Shooter: brand new genre invented by Kevin Butler exclusively for Natal WiiToo Kinect. PEW! PEW-PEW-PEW!