If it really delivers i can see it affecting the PS5 and mostly next xbox console. I can see the American market picking this idea up pretty smoothly if it works as well as they said but Sony and mostly Nintendo will still have their IPs and strong fanbase.

I do feel like if this is a success, it might be a little dangerous from Sony and Microsoft to only announce their next console several months later and launch it like a year after.
The whole thing seems really convenient for the grand public, let's just see now how well it works and the pricetag.

"What ? Google is launching a streaming service ? Sony is worthless now... even if they did a pretty good and functional service since 2014 and have a huge library of games"

Sony's stock has been falling for 6 months. They have no public road map for the future of PlayStation, and the rest of their business is either dead, dying, or flat. The stock will continue to fall as more and more competition goes after PlayStation. It will also continue to be hammered as long as they stick with Xperia.

At some point Sony will unveil what they have been working on for the last 2+ years, since they stopped supporting the PS4 and the current version of PSN. If it looks promising, they will gain all the losses back quickly. If they just show off PS5, with no improvements to PS Now/ PSN, no PS5 Phone, and no new Pub/Studio acquisitions, then they could be on a course that is irreversible. They have all the tools to succeed, and make sure they remain the dominate player in gaming, it is just a matter of whether they have the leadership that understands how to use them.

LOL, pretty much.  I wouldn't be surprised if Sony has some new announcements for Now with the PS5 announcement.  At least, I have noticed that in the past few weeks they have really been pushing Now ads on Youtube.

Also, with Google announcing 10.7 Tflops "consoles," I'm more optimistic about the rumors of PS5 being 12-14 Tflops.

The thing is the consumer doesnt have to buy that 10.7 flops so instead of having to buy a ps5 pro halfway they get the upgrade for free

It's like that method have not been implemented before with Gaikai, on live or even PS now. Yeah Google has more server but it's just the same and will be the same. There will be more people who will buy a physical box to play games rather than streaming it even if there will be no more  lag in far future, stable speed  or people around the world already has minimum speed 100Mbs (which is possibly in another 100 years to wait) . 

They still have to pay for the service and Lord knows how much that will be.  Of course, there will be tons of people who don't have access to the speeds or high data caps to get a good experience from game streaming.  In those cases, local HW is the only option.  There are also people like me who will not want to put up with the compression that comes with game streaming and will want to take full advantage of their 4K TV.

Also ,  when Phil Harison said  "open free Internet " in the Stadia reveal conference he forgot that  Internet it self is not free, far from freedom and limited by country law, and bound by politic, censor policy and monopoly by ISP.

People will not let their favorite games hobby and life,  bound by others peoples will . Normal people who is not crazy will not pay and let them self bound by that kind of rule. There will be more people pay for freedom of owning games , rather then just renting and ruled by others people will. 

Renting will just be renting, but others will just buy games and owning the games.  Streaming will just another renting that will not replace or even on par with buying your own games and console/PC. This is just pure fact from the moment the world is created until the end of times. This just basic economy. 

With none of the games in the Playstation library tough, its the videogames business, what drives sales are games. And Stadia (thats a terribad name) is not free.

I didnt claim it was, i merely claimed the flops were free outside whatever subscription model they will be running