OnLive (now defunct), NVIDIA (ramping up), Gaikai (working with, or acquired by?, Sony) just to name a couple. They don't give you your own VM to host and manage, they're subscription game streaming services, but it's the SaaS version of this.

Acquired by Sony, and the source for the Playstation Now service released earlier this year, which lets you stream PS3 games to a few devices

http://arstechnica.com/gaming/2015/01/playstation-now-review...

http://arstechnica.com/gaming/2015/07/hands-on-with-playstat...

There's also the Nvidia Grid for the Nvidia Shield (which you could plug into a 4K TV to play on, and play using a wireless controller):

http://shield.nvidia.com/grid-game-streaming

But maybe it's not quite what you want, since it's limited to their games. Never personally tried it though.

Grid is meh, but using the shield to play PC games anywhere in the house is a win. (I use the shield portable)

We're using Frame [1] to do that for Second Life Viewers right now[2].

Frame has a platform offering if you want to setup some other virtual world or game.

I guess I should do a Show HN, but it just hasn't been a priority with working out the kinks.

1. https://fra.me

2. http://brightcanopy.com

Oh, you mean OnLive? http://onlive.com/

https://www.gamefly.com/ recently launched on Amazon's Fire TV android box.

A lot of technically clueless people targeting casual games did actually. All of them failed or got acquired by even more clueless people.