Depending on how high the encode/decode/transmit overhead is, it might be a more efficient use of resources. Most game consoles and gaming PCs are idle most of the time. Centralizing the rendering in a data center is going to yield better resource utilization rates.

Mind you, they're still not going to be great rates, because the data center needs to be geographically close and so utilization will vary a lot in daily and weekly patterns.

Then again, maybe you can fill all those GPUs with ML training work when the gaming utilization is low...