As far as your client is concerned it’s a video that takes a lot of inputs from a controller. It knows nothing else and isn’t doing anything but accepting input and processing the video the same as watching Netflix.

So yeah, doesn’t matter from the client perspective if it’s PS3/4/5 level of game.

Now it matters a lot on the sever side. That hardware needs to be much more capable.

You got it! You are sending input to a remote system, it is inputting it on a console on their side and streaming the video to you. That is why ping time is so important, because that is the lag of your input to the remote console.