The bottleneck with Cloud Gaming is physical hardware (GPUs). You need both a dedicated GPU to run the actual game, but also a fast CPU (or expensive FPGAs) to stream the video to your thin clients. GPUs are expensive, power hungry, heat up quickly, take up space, and can't be shared across multiple players.
As a Cloud Gaming provider, you need to invest heavy capital into distributed hardware across the globe, before you make your first cent. This makes this business non-viable for all but a small handful of players in this space.
Cloud Gaming providers have been trying to get around the hardware bottlenecks by introducing various optimizations (time sharing, like with old mainframes) - at the expense of flexibility and the user's experience. Your users pay a monthly subscription, but get various limits imposed on them to allow for the other players to get enough GPU time and maintain fairness.
As a Cloud Gaming provider, on-top of the GPU bottleneck, you're also going to spend a lot on bandwidth (real-time streaming at high resolutions). Your clients also need a good internet connection to enjoy a seamless experience (which is still a precious commodity, in large parts of the world).
Finally, you need to offer your subscriptions at a reasonable price. If the price you're charging is too high, your clients might as-well just save up for a new PC/GPU for a couple of months and buy their own machine from which they can play and cut off the middleman entirely.
Without solving the hardware bottleneck problem - Cloud Gaming becomes too expensive to run, as it can't scale to serve everybody the way something like Netflix does efficiently.
This seems like a fundamental problem with this business that has brought down multiple big players in the Cloud Gaming world already.
Cloud Gaming sounds like an impossible business to run in 2022.