Has long as it need to be close that is true, but if gaming hardware is very similar to hardware that can do other things (say mining type is viable), you could have an relatively easy aways 24 hours usage of that type of hardware going on I imagine.Usage is largely cyclic (ie, primetime-focused) with nearly zero usage in off-hours. Since the compute resources need to be in the same region as the users, that also means the provider couldn't simply assign the resources to regions in far-off timezones to increase utilization.
The goal is plain and simple: increase revenues by turning a $30 game that you play for five years into a $10/mo rental that ends up totaling $600 after playing for five years. Eff that and the horse it rode in on.
If that is true that would create a giant incentive to create game a play a lot, if I actually love a game so much that I play unstop for 5 year's I would not mind paying a lot for it and for me would end up paying a lot for games I do not play I think. I can see how it could be popular (like Netflix vs a collection of Dvds)