I have been truly perplexed ever since cloud gaming became a thing because the inputs from your controller have to go through the internet to a server to be processed and then back to your console to ultimately be displayed on your TV which creates unnecessary input lag, I mean there is input lag from the time you make an input on your controller to when that input gets processed in the console and then is ultimately displayed on your TV screen so how can cloud gaming even be technically possible without horrible input lag that cannot be done away with?
You raise a good point. Video game streaming will
always have add some amount of input lag, compared to playing the same game on the same hardware locally.
There's a "convenience" factor to streaming. You could play high-spec games instantly (with no download required) on devices that couldn't normally handle those games, such as mobile phones, smart TVs, and older computers.
Let's discuss the input lag, then. There are some game genres that are noticeably affected by latency. Some examples are shoot-em-ups and fighting games. Even one or two added frames of lag could make a difference. Hardcore players will find this unacceptable. Casual players
might dabble with some of these games for fun, but they won't want to pay big bucks to do so.
There are also other genres that aren't as demanding for precise timing, such as turn-based strategy games, role-playing games, board, games, card games, and point-and-click graphic adventures. For these games, even if you have a few frames of lag, they wont have a major impact. They won't "break" the game or detract noticeably from their enjoyment.
Most streaming services promote the wrong types of games, along with the wrong devices to play them on. Fast-action games with lots of different inputs don't translate well to a mobile phone with a touch screen. These services should be focusing on getting the appropriate types of games--ones that don't demand precise timing, and have relatively simple control schemes that can be easily adapted to a touch screen or a TV remote control. When they start offering those games at affordable prices, then you might see more people willing to give these services a chance.