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If the PS5 Cloud Streaming service offers 4K game stream at launch, it will gain a leg up over the Xbox Cloud Gaming which currently does not offer 4K streaming yet.
A forum post on resetera.com by user ArashiGames gives us some more information about PS5 Cloud Gaming Services. As per the post, the games will directly load cloud saves when playing. Further, users will get the option to choose between 720p, 1090p, 1440p, and 2160p. This means that the service will allow up to 4K streaming. This is important as PS5 Cloud Streaming's most direct competitor, Xbox Cloud Gaming, does not offer 4K streaming yet. ArashiGames notes that streaming God of War: Ragnarok at 2160p was no issue.
Back in June this year, Nick Maguire, VP, Global Services, Global Sales and Business Operations, SIE posted a blog. In it, it was noted that Sony was testing cloud streaming for supported PS5 games. This would include PS5 titles from the PlayStation Plus Game Catalog and Game Trials, as well as supported digital PS5 titles that players own. He also added that when the service is launched, cloud game streaming for supported PS5 titles will be available for use directly on the PS5 console. Thereby skipping the need to download games first on the console.
Sony has not made any official announcements about PS5 Cloud Gaming Services yet, but expect an official unveiling of the service soon. However, we do not yet know which countries will receive the service. Do note that while Xbox Cloud Gaming has been a thing for a while, it still hasn't officially launched in India.