Most western nations would make this illegal if it was a product but they sell it to you as a service or as a product + service without which the product is bricked or half-functional. Services are contracts and those can be cancelled if you breach the terms of the contract, or often just with a catch all 'we reserve the right to cancel this without warning at any time'. Sometimes this is prevented, like the Australia and European nations declaring Steam games products, but usually the company adapts and admits the core is a product but the rest is a service or whatever to avoid it. Streamed games are the end game of publishers not just because they make piracy extremely difficult but because they'd objectively count as a service.
It's not all that new, even if you go back to when games were
objectively a (physical) product when shitty on-disk DRM like SecuROM or Starforce went tits up with later versions of windows or whatever the publisher just has to claim that it was only advertised as working on X version of windows and it still does and they're not obliged to provide patches as a service to keep it working.
This is also how lootboxes get around gambling laws since they're selling a service (continued access to your fancy jpg skins) not a good. Semantics is a common trick to get out of legal obligations. Or take Amazon, where they've sold outright lethal shit marketed as food because technically
they're only the broker/marketplace and aren't responsible for any claims made about goods people sell on it. This is despite the fact people will trust Amazon far more than buying directly from chinks even though that's what they're doing with Amazon simply taking a % cut.