Alternative outcomes:
Gaming bifurcates.
Indies and certain AAs aim for the 'good ending', realize fancy graphics are not only harder to produce, but you're actually just shooting yourself in the foot in terms of potential customers.
AAA on the other hand continues to double down and enshittify, figure out new ways to turn gaming into leasing and renting.
... but, as always, mostly marketing, ad campaigns, paying off "journalists" and "influencers".
3rd potential outcome:
Something akin to lan parties/netcafes/arcades recurs.
Rent out a space, run a local to global network solution and also a miniature rendering farm.
All the actual PCs (or maybe VR headsets) are connected to cheap, thin client local machines that are then networked to the mini rendering farm.
4th potential outcome:
... nobody can actually stop people from emulating or running old, good games. 'Piracy' becomes as normalized in many other parts of the world as it is in Russia currently.