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Netflix has launched a cloud gaming beta test on TVs, with computers to follow
(www.videogameschronicle.com)
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Google could have made it work. They just did some weird business decisions. You can't use your existing game library. You must buy full price games from them even if it's a discount on other stores. So customers are left paying both a subscription and full retail price for the game. People don't like double dipping. They required the developers of the games to design it specifically for them, or at least make a build for them. That's not necessary, might be an efficiency, but we've seen lots of other streaming providers shadow and GeForce now not require that
If they just let you run steam games like GeForce now does, I think they would have had a huge audience.