You only have to look as far as Battlefields destruction system to see what issues "cloud" latency causes in-game events.
You strap a building in C4 and blow it, the server processes the destruction event and updates all the clients, so what you end up with if you have a slight high ping is a building blowing up and falling that appears delayed and looks janky clipping through the floor.
Not very exciting, whilst it does add to the game you do have to suspend belief a touch.
So like PC games have been for what, over a decade now?