[kabdib]

One hard nut: the cost of provisioning datacenters with enough GPU capacity to meet the demand curve of a "hot" title, and still make sense in terms of inevitable idle time and depreciation.

Either you have insufficient capacity to meet day 1 load when everyone piles onto a hot new title, or you over-provision, meet that demand and have much of that hardware doing nothing during doldrum seasons (or when a title bombs).

Probably you need to figure out how to make GPU capacity useful when it's not rendering games, and sell that as a service as well (GPU-based machine learning?). It doesn't help that OSes have been prickly about letting processes share GPU resources; I imagine there are a fair number of thorny security problems, even with GPU MMUs.

This doesn't seem like something a cloud gaming start-up can really tackle; lots of capitalization, with lots of competition from entrenched providers, and no really compelling reason to put games in the cloud to begin with. The bigger (console) players probably realized that having consumers buy their own compute is not only cheaper and more resilient depreciation-wise, but also causes a nice platform lock-in effect once the customers have purchased a few titles.