Posted February 26, 2020

First of all, there has to be a market for powerful gaming hardware, especially graphics cards, because gaming software (i.e. the games created by game studios) relies on this hardware. If streaming services would completely eliminate physical ownership of games, then the graphics card market would plummet to the point of being barely sustainable and other hardware manufacturers would likewise suffer serious losses. This would ironically also increase the cost of streaming down the road as the hardware required, especially GPU:s, would become far more expensive and more energy-consuming if games would keep developing in complexity the way they have been for the past years. Maybe Google wouldn't care about this initially as long as it wouldn't affect their narrow business model but NVidia surely would care - and that's maybe another reason to support NVidia's GeForce Now over Google's Stadia. NVidia has a vested interest in maintaining demand for physical gaming hardware and software unlike Google.
Second, the means and forms of ownership are deep-rooted cultural notions and I don't think that physical ownership of games will disappear as long as people physically own other types of digital media such as books, music, and movies. Sure, you have movie and music streaming services but you can never convince customers to eliminate physical ownership of digital books and music because the convenience argument doesn't work there. It's simply far more convenient to physically own books and music than to stream them and we will eventually get there with movies as well given the ever greater bandwidth and download speeds. In a world where computer users physically own digital books, music, and movies, there will always be resistance against relinquishing ownership of games. GOG's business model is a perfect manifestation of that.
Third, game studios want to sell games, period. Of course, they'll happily sell streaming rights to the likes of Google and NVidia but if they can make additional money on direct sales to customers as well, on top of streaming rights revenues, then they'll equally happily take that as well (unless of course they are forced to sign exclusive deals with streaming services). So, gamers' demand for physical copies of games will also play a part in these considerations by games developers.
So, to conclude, yes, the perils of game streaming services should not be ignored in terms of implications for physical ownership of games but we're a long way away from that scenario currently. And if we want to hedge out bets then we should support a streaming service that has a vested interest in keeping physical gaming and physical game ownership alive, such as NVidia's GeForce Now service.
Post edited February 26, 2020 by retrorealms