Mainframes are a dead end because local hardware is so cheap and powerful. This has been the case since... basically the invention of home computing. For all the promise of cheap dumb devices that roll with generational upgrades, Google can't even keep Chromebooks up-to-date, and it's not like old cell phones were actively supported by PS Now. It's asking a subscription fee that people are already paying, but instead of them also buying and powering your hardware, you have to buy and power your hardware.
All so you can... what? Fuck developers out of even more of their money? You take a third of their revenue, straight off the top. The one feature every customer says they want is a buffet system, like streaming video, where they just play whatever. But Hollywood's currently dead stopped over the clever business model of not paying people who make all their content. The games industry has been looong overdue for a similar unionization push, and nothing would hasten that like announcing these multi-year projects for gigantic publishers would be paid at some first party's leisure. Like it's not enough to have appropriate compensation and future employment dangled on the basis of sales figures pulled from the marketing department's collective fantasy. Who's gonna put up with a model where fraudulent accounting can claim every title "lost money?" At least the cartoonists indentured to toy departments can track a dollar figure for whether their wildly popular series is allowed to continue.
It's absolutely going to cost more per-month.
It's unfuckinglikely to cost less per-game.
How much cheaper does this have to be, up-front, before people say fuck that and build a PC? Or just go to mobile games, which are happy to suck out their brains and their wallets? The - I still can't believe this is the actual name - Xbox Series S only costs $300. Like a Wii. It's an impressive feat, and it underlines how much infrastructure can be brushed aside for a small investment by consumers. The kind that locks them into buying games from your pound-of-flesh storefront, and keeps that precious third of revenue away from Sony or Valve. Which you want, even if we super don't.
Because whatever you've heard about the streaming market, I guarantee it has not praised consumers for brand loyalty.
It's going to be more convenient and economical just streaming games and renting them forever and then upping the subscription rates and making them exclusive to game stream platforms.