In my opinion, it is only growing because it is bundled with popular subscription services like Game Pass. I don't think the sector has it's own legs to stand on, but time will tell.
The biggest cloud gaming services up until ~1-2 years ago were Geforce Now and Google Stadia (RIP). Xcloud gaming or whatever they call it today was extremely poor (latency and UX issues) and in limited beta, with a very limited library.
Nowadays Stadia is dead, Xcloud is kind of usable under the condition you use a controller (which makes it a non-started for pretty much any non first-person game) and pay for Game Pass. Geforce Now is still going strong, has much better and stable quality and is the gold standard.
Cloud gaming is a growing market – they're preventing the deal on the hypothesis that it will give Microsoft a huge advantage in a growing market.
How does any large company build into a new/growing market without having a "huge advantage"? Do they have to wait until the market is matured from smaller companies before they can get into that market?
