Then comes the beauty of mainframes. What makes hardware expensive for end-customers is the so many reselling steps and manufacturing process that comes with any pirce of hardware. Making a powerful server costs much less than making equally powerful pieces of hardware
Besides, most of hardware we buy is obviously idle for 84% of the day even for gamers who plays as much as 4 hours a day, which furthers decrease the costs of maintenance to keep games running
Of course, companies will exploit it and charge as much as they can even with less costs involved, and yes I'm aware cloud will hardly make me paying less money for games, but money is not the reason I'm a cloud advocate, if price was the problem Microsoft already solved it with the very cheap Game Pass that you don't even need a Xbox to enjoy
The beauty of cloud is to not care anymore for hardware making your experience worse. You subscribe a service and/or buy a game and you play as good as your TV/device can display it and as well as your intent allow it
You can even charge different prices based on the quality of experience and how demanding it is to serves. Standard 720p and 3p FPS? 30 USD, 1080 and 60 FPS 60 USD, 4k and 120 FPS 90 USD
Make gaming more popular allowing different kind of customers deciding how much they are willing to pay for some kind of experience
I would say you got it wrong. Just look at stadia or any other cloud alternative.
The cloud make your experience worse, exactly because of not only its limitation (like broadband connection) but also that on PC you can have as good an experience as you want but hardly you'll have that on the cloud.
Let's look at netflix for example, even if you pay for their best option of service the 4k is subpar quality and content on it is minimal.
duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"
Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"
Azzanation: "PS5 wouldn't sold out at launch without scalpers."