https://www.gematsu.com/2020/05/japanese-tech-journalist-teases-huge-scoop-on-the-level-of-wireds-ps5-article-for-june-4-due-issue-of-weekly-famitsu

The “huge scoop” teased by Nishikawa is that Sega is doing research and development on “Fog Gaming,” a potential new game platform that could be utilized by Japanese arcades.

Fog Gaming would repurpose arcades across Japan as part of the cloud, as well as channel arcade game machines’ CPUs and GPUs, resulting in lower costs. This would provide ultra low latency, and the concept is similar to fog computing. Players would be able to enjoy high-quality games, and arcades wouuld be able to make money even after business hours.

So it's stadia but for Arcade local store.

Good for Sega and arcades in Japan I guess...

I'm not sure what's more underwhelming: a miniconsole with only four games per model, or a cloud service only a handful of stores around the world will ever use.

Well, only for Japan

I remain unriled.

This will be really big for casinos. Truly huge for them and SEGA.
Arcades outside Japan will be able to get more Japanese games without the need to import expensive machines. This will increase their profits and lower their expenses. It may help prop up the struggling arcades gaming market in Japan.
But more than anything this will be huge for casinos, which is where SEGA started so it's apt that they've done this for their 60th.

Sure, but it will also mean old and dirty machines. Also most of them will look the same. The machine itself is a work of art, but with this most of them will probably just be single color machines to make sure they fit different games.

Shake up arcade Industry in Japan, some lost translation probably. But it's actually big. Arcade store dont have to pay a lot of money to buy and change the hardware. Cloud actually good for retail arcade and mass amusament place. 

probably the main hardware will be the same, but the input controller, screen,  and accessories will be different depend on the games.