Judging by the amount of people saying they've used and enjoyed cloud gaming I'm not as confident as you to make that claim. If cloud keeps making offers good enough such that people pick it instead of building their own PC, the number of personal devices will decrease.

I enjoy low-latency competitive games, and I'd say those are unlikely to get replaced by cloud, because many players notice latency spikes immediately. But I'm a bit skeptical of how much market value can be sustained by people who like the feeling of owning their own hardware, or feel the need to have lower latency in games.

I'm sure if someone built a data center within two blocks of my home and I was able to stream from it, many of these issues would disappear as well.

Consoles already make you pay for online services. They already sunset games so I think even under the new rules they have the ability to stop that service at any time.

>Nor do I think Nintendo will simply drop their hardware efforts to focus on cloud,

Consoles might as well already be cloud for all you control them. But I guess I should've specified PC gaming. I thought it was indicated from the context of "stop killing games". Also, to be clear, I'll never "cloud" game or use consoles. I'll just remain in the past with old hardware and old (and new indie) games. But the "PC gaming industry" as an economic block larger than movies is dying and that's a shame.