Cloud gaming is already here i.e. Xbox Game Pass/xcloud, Stadia, etc. Being able to play 4K games streamed onto your smartphone, tablet, or laptop will eventually be possible after 5G service & fiber internet gets rolled out everywhere over the next decade. It's potentially good for gamers as we'll be able to play games at the highest settings for $15/month without having to shell out $1000+ for high-end gaming rigs/graphics cards/console upgrades every year. They just gotta figure out how to bring down latency for multiplayer games.
If this ever happens I don't see Sony being a hardware company anymore. They can't compete with Microsoft (or google or amazon) in the cloud business as they don't have the resources or capabilities. Sony will end up becoming a games publisher. This is what I believe is Microsoft's likely long term strategy.
Fun fact: PSN online network/services already currently run on Microsoft Azure cloud severs lol