The problem is: Cloud based gaming sucks. I mean, consider the "warm welcoming" that Ubisoft got for it's games that needed constant connection to their servers, which even had issues of going down a lot during it's first few weeks of service.
When the internet goes down (which it does sometimes), doesn't that mean that all cloud-based games and internet required games will be inoperable to use? Yes, that's what that means. All of your gaming library would be USELESS! That would suck.
And games are not services, they're products. TV, such as the News, is a service and that aligns more with the internet in general. But, movies are PRODUCTS that are purchased and kept and used, just as a video game is. Neither of which are services.
The only video game that is a service is a MMORPG, and that's because it is a service of constant virtual 3D worldly living and experience. Weird when compared to other online games, I know..., however most other online games have an ending, a small map with a single objective that eventually ends at some point and will reload or load a new map. For an MMORPG, the map is ever consistent and never has a clear ending objective that makes it give a "You Win/You Lose" screen right before kicking you to some load or menu (except for included mini-games within said universe known as Battlegrounds, but those end and then drop you back into the game's regular map world).
Edit: P.S. Many more of these foolish developer/publisher need to take a page from Valve and see that when they support their customers through their products with open arms, then they'd make more money and get more general appreciation. Instead of milking the DLC, provide much of it free, that way the gamers will jump on to your next product without a second glance; instead of hosting your own servers and then shutting them down months later, open up the option of player ran dedicated servers (saves money and pleases audience); instead of crappy games, make QUALITY products that has some actual development and QC time put into them.