https://www.digitaltrends.com/gaming/microsoft-ceo-project-xcloud-netflix-for-games/
Well, the hardware, consoles that is, doesn't generate much revenue, sometimes they are even sold with a loss. Imagine you are Sony or Microsoft and you could have the same control over your marketplace and have no piracy and so on, and not be limited to selling to people who have bought your hardware. That's what gaming streaming services offer.
It's a way to create a tectonic shift in the way people access games. Think of all the people who would never buy their hardware for any reason. There is currently no way for Sony or Microsoft to get their business with the titles offered exclusively on consoles. A streaming service just pushes frames to the end user, so there is really no need for a PC port. I think eventually, in like 10-20 years or so, this development will kill off consoles. They are extra hardware no one needs.