And what happens to online performance when an AWS system (PSN) tries to connect with Azure? Maybe nothing. Maybe Microsoft slip something in between to increase lag/latency
It wouldn't be the first time; they were kind of notorious for stuff like this back in the Wintel days. If you had Windows '95 (or some other Windows of that era) and tried to uninstall Internet Explorer, the OS would end up borked. But that's because Microsoft programmed it that way; when they got taken to court they were forced to admit that it was out of a choice and could program it so that the OS ran perfectly fine without Internet Explorer.
They also withheld APIs from Netscape during the early IE/Netscape browser wars. I mean this stuff is distant now to some extent, and it was more of the Wild West in terms of home computer tech markets (at least for that era following the microcomputer boom), but it's still a part of Microsoft's history and they made gains there they benefit from to this day. You could almost call it 'corporate privilege'.
They won't offer Amazon that because like Microsoft said "their biggest competitors are Amazon and Google" which is true. Xbox biggest rival may be playstation but MS biggest rival is Amazon and Google.
It's another reason why I believe they want King for mobile. They take 250 million users away from Amazon AND google AND Apple (Apple use AWS). King weren't worth the money before, but now they are. We all know how short sighted Microsoft can be.
Imagine Microsoft not just owning the IPs or the consoles, but also 100% of the back end servers that supply the entire games console. They wouldn't even need IP's or Hardware if Sony and Nintendo had to pay mega money to MS to host their online services.
Yeah, with the way some people keep trying to say gaming will be cloud-only in the future, it could create a situation where Sony & Nintendo are forced to turn to Microsoft for cloud infrastructure (MS & Sony already signed an MOU in 2020 for Azure, but I don't think anything is ever going to come of that, especially after this). It'd be one thing if Microsoft were not hosting their own competing cloud platform too but, that isn't the case. To be fair, the same concerns would exist if Sony & Nintendo were forced to turn to Apple (Apple Arcade) or Google (Google Play), too. Maybe Amazon as well, since they have Luna. Whether offering content through direct digital sales, subscription, or a mix of both, a cloud future would leave companies like Sony and Nintendo beholden to one of the big tech, and we're talking about a potential scenario where the company is Microsoft who also own all of ABK.
It's kind of like a web hosting company providing server space for other websites, but they also run their own competing websites. How does that work without the host eventually making things materially worst for companies paying for hosting, in order to push its own websites as priority, especially if they want to increase market share of those websites? I don't think it
does work, that's the point. Some things probably just have to be separated in that regard, or at least up to a point where only limited vertical integration should be allowed. Kind of like with the movie studios and movie theaters; I know the idea's been floating around to retract on that particular decision, in light of shrinking market of movie theater chains, but it's not a good enough parallel with gaming. The gaming market's been growing, not shrinking. Publishers by and large are doing just fine; there are no supply chain or economic factors stifling production of digital or physical game content, or providing it through a direct sales model.
So I don't think MS lawyers can even turn to those types of arguments to make a persuasive case, when it comes to the cloud side of this stuff.