Definition - What does Cloud Gaming mean?
Cloud gaming refers to a game that resides on a company server rather than on the gamer’s computer or device. The gamer enters the game by installing a client program that can access the server where the games are running. The main advantage of cloud gaming is that the company can upgrade the games without having to worry as much about the capabilities of users’ computers.
Techopedia explains Cloud Gaming
The client program that the gamer installs is usually very light in that it doesn’t require a lot of processing power to work. The gamer can then select from the available games within that client and play them on the server. The processing power for running the game is provided by the server, but the speed of the connection can become an issue for the gamer. Cloud gaming companies usually charge a fee or subscription, operating much like online video rental services.