Yes, but sometimes ideas come ahead of the infrastructure that would enable them, in this case fiber rollouts and geographically distributed data centers with GPUs. I've been really impressed by GeForce Now lately and XBox Cloud Gaming is a thing.
Didn't really fail, GeForce Now is still available and working well. Stadia was abandoned by Google but worked really well for the ones that had good internet and lived close enough to the data-centers.
The bad part is needing to live close to a big, expensive, GPU-heavy data-center, but if mobile GPU's are getting that good, maybe in the near future we could have single servers or small racks serving a few dozen to a few hundred players, that would be much easier to co-locate, grow as needed, and improve latency.
Yes and? Does that mean it can never be tried again?
If car makers gave up with EVs 30 years ago, and never tried improving, where would we be today? Because EVs are not the ICE replacement today, does that mean it won't be in 30 years' time?
All I'm saying is that the natural outcome for gaming is cloud + subscription. Maybe not the next xbox console, but possibly the one after next.
This was the inevitable outcome of music and video. Gaming is next.