It could potentially become an option in the future ...
Heck, why chalk up technical difficulties to just the Switch or mobile platforms ? There's no reason to believe this solution couldn't be used to circumvent the limitations of PC and home console systems as well in comparison to games being made solely for render farms ...
However, rentals are not as profitable as selling the full copy in this case so cloud services can't only be a viable model for recuperating AAA game production costs. It's highly likely in the long term that AAA 3rd party game publishers will continue to design their games around the large install base of PC and home consoles to be on the safe side ...
Cloud gaming just becomes another invaluable tool so as to provide content on inaccessible systems such as the Switch or other portable hardware platforms where AAA game publishers couldn't monetize before ...
What Capcom is doing is not much different than what Sony was doing back when they were offering a PS Now service for devices other than Playstation to access it's library ...
