As a virtual machine I could see that and it’s possibly the only way such a product would be viable. The thing is, stadia tried this in a round about fashion and it failed. Geforce now does basically this and it’s available as an app on lots of streaming boxes and smart TVs. So effectively this kind of already exists in a way that’s less prone to obsolescence but I’m not sure most people want it because of the tradeoffs of a required internet connection etc. It’s the kind of thing that sounds like something people would want until you even stop to think about it for a moment. The more you think about it the worse an idea it seems.

There’s different demographics of gamers out there. It’s not useful to most of them for lots of reasons like built in anti-cheat, drm, requirement of an internet connection even for solo/story mode games, the fact that some gamers want bleeding edge everything while others want stability. Still others only play older games and for them this doesn’t do much except make finding drivers and virtual environments harder. Then there’s the mod community etc. It just seems like it would be a nightmare for a lot of people.

Also. If you’ve ever taken apart a modern TV you know how finicky and fragile some of the parts and pieces are. I wouldn’t want to attempt to upgrade my ram just to end up damaging the backlight module or the screen.