So, after perusing through the trolling, it seems the only real issue is bandwidth. Many here probably have a steam title or two or 100, or are PS Plus subscribers, or have an XBox Live account, and still have custom rigs that require their own personal generators.
This guy is selling his business, which is a good one. He will make loads of cash, even if the industry doesn't move that direction for good.
If we watch the trends though, it's all about control and market share. We will most certainly be forced to try and play cloud based games having terrible pings. What will happen then is likely nirvana, where we will have internet providers offering us 0 latency at a premium price however they may manage to conjure such infrastructure. Though we lose some of the "sport" of creating our custom machines, and the touch of our physical media, we will adapt. I'm more looking forward to them developing good content. How we come to play matters less, as long as we are competitively able beat down some zombies with guitars with the precision and grace that we do today.