I obviously don't have numbers at hand, but I'd bet most people have a internet connection with a latency of at least 100ms to closest game service servers, unless you already work in IT or adjacent sectors where latency matters more. Not even 50% of people online in the US are connected via fiber optic connections, so extrapolate that over the rest of the world, although many countries have better connections than available in the US.
There are a lot of sources of total latency in most games and systems that affect how long it takes between when you click a button and get a response. This means that there's often opportunities for optimizations that can remove entire frames of latency to make up for the additional network lag. It's not going to be enough for e-sports games but it can keep the experience from changing for many titles.
Just as an example of what I'm talking about, if you turn on the nVidia Reflex latency reduction feature along with the DLSS 3 AI Frame Generation, you get the same latency as with Reflex off but with much better smoothness. Of course if you're playing Overwatch you are chasing every millisecond of latency, but for most games it just needs to be low enough not to be noticeable.
Only 2% of the US population owns a Xbox Series S/X, 2.3% own a PS5.
The average internet speed in the US in 2022 is 120mbps.
Asking people to have a >250mbps connection to using cloud gaming vs being one of the most popular gaming consoles in the country isn't much to ask... in order to be a moderately successful game platform.
