Really thinking about it, seems google is more so gonna compete in whatever space Microsoft is going with the Xbox rather than what Nintendo or Sony is doing. This is gonna be interesting.
Sony has the technology and infrastructure to run game streaming since they have been doing it for 5 years, but they know native playing probably isn't going anywhere long-term. Microsoft believes it has the ace up the leave meaning they can choose to stop supporting Windows sometime in the future
natively, and offer either streaming, virtual desktops, or win32 application layers in the cloud. Its not about gaming, its their ability to process in the cloud and charge a subscription. So... what happens say in 2024 and Microsoft sends end of life notices out to Windows/Xbox users letting them know no more Windows and Xbox update or new versions? They only than offer to do processing in the cloud for a subscription. If you have digital software and games they can process them in the cloud, meaning give you a Virtual Desktop or play your Xbox library.
Although, Amazon offers WorkSpace for virtualized windows desktops what happens if Microsoft stops Windows upgrades/updates other than what is offered on Azure?
The world needs to come up with solutions to running win32 outside of Windows, there are some ways to do it, but they are not ideal at the moment. Here is everyone's future (a few years off yet) for running win32, uwp, or xbox i.e. subscriptions.