Cloud computing has revolutionized the gaming industry by enabling high-quality gaming experiences through powerful remote servers, removing the need for expensive hardware. This approach, known as cloud gaming, allows players to stream games directly to devices with minimal hardware requirements. Platforms like Google Stadia, Microsoft xCloud, and NVIDIA GeForce Now deliver games on-demand, making them more accessible and scalable. Key benefits include reduced costs, cross-platform compatibility, and improved game development and distribution models. However, challenges such as latency, bandwidth demands, and data security remain hurdles to overcome. Despite these issues, cloud gaming is expected to grow significantly as technological advancements in network infrastructure and edge computing enhance its performance. With its potential to reshape gaming industry by making immersive, high-quality gaming experiences more accessible, scalable, and cost-effective for players and developers worldwide. Cloud gaming is seen as a key driver of future innovations in the industry.