Going from dumb terminals to beefy individual networked computers and back a few times was a thing for a while and eventually it has settled into a use case specific balance because it is a balance between costs of centralizing the computing, networking, and people managing both. Throw networking connection issues for many locations and it is clear that everything cloud doesn't work for everything.

Centralized gaming has already shown the same complexities and can never be fully put into the cloud even if that will work for a large portion of games and uses.