MS has been buying studios up like crazy and are rumored to have a few big ones lined up to announce at E3. They are positioning themselves quite well for the next cycle of consoles/streaming. They are co-market leaders with Amazon in the cloud server space, substantially ahead of the other competitors, including Google. And unlike Google, they have the gaming pedigree to make their streaming service VERY marketable.
I expect Xbox Game Pass to include XCloud streaming (seems absurd if they didn't) right out of the gate, when XCloud launches. This will give people access to a huge library of games, including all MS studio first party releases first day of availability, via streaming as well as downloading to Xbox consoles and PCs (expect Game Pass for PC will have officially launched by then). Can you imagine when Halo Infinite launches, through XBox Game Pass, included in your subscription first day,, played through XCloud or the new Xbox console? That is going to be gigantic. Having access to Game Pass's game library, streamable through XCloud, is going to be very enticing.
I've heard the argument that Google has the advantage because Stadia uses a 10.6TF GPU core while XCloud right now is using Xbox One S components in their server racks. There is no doubt that Microsoft will be uprading XCloud servers with the components from the next Xbox, which I expect to at least approach 10.6TF, otherwise how would they stream Halo Infinite and the other next gen games that will be released on the next Xbox? I think that worry is silly.
Google is going to have a hard time gaining the game library to make their service attractive in comparison to MS and Sony. Google needs to have at least one killer exclusive title. I don't think they can make real inroads if they are relying only on third party titles that also come out for Xbox and Playstation, especially when MS and Sony have competing streaming services with a much larger library of games, including plenty of exclusive titles. And we know it takes a long time to build up a core library of attractive games. Will Google still be invested in Stadia 2 or 3 years down the road if it has launch issues? They aren't known for supporting their millions of initiatives over the years.
The issue Sony has this next cycle is a lack of cloud infrastructure to really compete with Microsoft and Google. PSNow only has a small presence in Europe still, isn't available in Mexico, and is likely not close to launching in South America. I would also assume that PSNow's streaming quality isn't the best outside of the major cities in the US. Microsoft and Google, on the other hand, already have cloud servers in place across the planet, on all the major continents. Microsoft and Google can launch their streaming service throughout the US, Canada, Mexico, Europe, Japan, and South America almost from the very beginning if they wish. And Microsoft/Google's cloud reach and quality in the United States is markedly better. Couple that with Sony's apparent reluctance to really invest resources into expanding the service (not like they should have been with their head start), lack of interest in cross platform gaming or allowing PSNow access through other platforms, and a policy of not making their 1st party titles available on the service even years after their release, and I think Sony could be in real trouble....not catastrophic out of business trouble but trouble in retaining their hold as the dominant video game company in the world.