You talked about console hardware, but then mentioned distribution. I’m going to guess you mostly mean servers - as these days people don’t really need any special local hardware aside from any controller.
The major cities generally already have those servers distributed and working. It’s true certain edges of the world don’t have a good experience, but that sort of just fits in the 70% of scenarios where you wouldn’t want a cloud game.
There’s still this weird expectation it would replace your home den where you have lots of space and disposable income for multiple consoles - it doesn’t. It’s really more for the convenience of getting your games from a web browser.