"The cloud" never meant anything else than either storage online or work being done by servers online.
Which is the standard procedure nowadays for pretty much any kind of service/website/etc. Any game with a bigger online component has lots of stuff being done in online servers.
It was a stupid, unspecific buzzword that mostly went away as its "meaning" became the default for how almost everything works anyway.
Cloud is big business. But for gaming? No. Cloud storage of files is fine, but remote processing of game content? That is renting computer hardware. And that costs money.
In theory, you can rent a supercomputer to run your game from a remote location. But you would have to pay the rental fees of a supercomputer. Game streaming is NOT cheap. Yes, it can offer near infinite power, but you had to pay near infinite fees to do it.
the initial ideology they were shooting for with effects, textures and all that shit streamed to you never came to fruition. It wouldnt have been feesable on a large scale anyway. microsoft would have gone bankrupt within 6 months. great on paper though.
you basically playing the game on low and the cloud streaming graphics to you there goes your bandiwidth cap and some ping spikes while you play. now they just stream video of the game to your phone its much more feesable monetarily for them.