One business is to make and sell or rent to users (and optionally play them in cloud gaming) videogames. The other business is offering to other corporations server space in their MS cloud and related services. Two very different business.
We don't know how many MAU does Xbox cloud gaming has. GP should have 25-26M, a small portion of that should be GPU users and a small portion of that should be Xbox cloud gaming users. Pretty likely there are only a few, maybe a handful million Xbox cloud gaming MAU.
For the scale of Google Cloud or AWS this is nothing. And same goes for the future of cloud gaming, they are desperate spending almost $100B on gaming acquisitions because they aren't capable to compete against their direct competitors, who dominate them.
In this particular case, their direct competitor basically innovated becoming the first console maker on investing on cloud gaming, got all the cloud gaming patents, started the multigame subscripstions before them, built a bigger cloud gaming catalog, a bigger lineup of exclusives, got twice the subscribers that MS has and did it with a way more profitable business model for game subs/cloud gaming (not putting day one games there).
MS came later to make their own copy of these game subs and this cloud gaming, and has to make big acquisitions spending dozens of billions on acquisitions and almost give away super expensive AAA projects because aren't capable to build themselves a 1st party lineup as appealing as the Sony and MS one. And even doing that they can't compete at the same level.
No, it's a perfect equivalence, it's as nonsensical as your comparision.
MS has 60% of the cloud gaming market in UK, we don't know it's worldwide market share. We know that Sony has twice the game subbers than them.
Having the 20% of the cloud server market and being top 2 isn't
relevant at all with their gaming/game subs/cloud gaming business. It can be seen knowing that Sony has more market share than MS+ABK combined and twice the game subs than MS without being in the cloud server market.
The acquisition has been blocked, so it won't happen. Unless MS has some way to appeal it in the court (not sure if possible) and wins the case.
Having AB would help MS in cloud gaming a bit, or not. Becasuse it's a tiny, irrelevant market and will continue to be so in the future. And their direct competitor, where AB games are only a tiny portion of the games sold and rented there, makes way more money than them from game subs and have a way bigger amount of subscribers.
It's a nonsensical comparision, like yours. To make tvs doesn't benefit Sony in gaming and viceversa, in the same way that having server cloud services doesn't benefit MS in gaming/cloud gaming and viceversa.
TV, server clouds and gaming are separate business with basically no interconnection between them. And doesn't matter to have slightly cheaper tvs/server cloud because first they still have to pay most of their costs, second what they provide to the other business is a very tiny portion of their business, third what the other business provides/saves to gaming is to save a tiny portion of their total work/costs and could be perfectly made with other brands.
No, they are not.
Xbox Cloud gaming doesn't have 100M users at all. GP has around 25M, a portion of them are GPU users and a portion of the GPU users are Xbox Cloud gaming users and a portion of them are MAU. We don't know which are these portions, but pretty likely Xbox cloud gaming has only a handful million MAU being generous.
MS doesn't dominate anything. They estimake a 60-70% cloud gaming market share for UK, not worldwide. Worldwide Sony has twice the game subs (game subs market is only 7-9% of the total gaming revenue), but we don't know the numbers for the tiny cloud gaming market (a small portion of the game subs market, so a tiny portion of the total gaming revenue).
This is data for the UK, which is the market that the CMA regulates and protects.
According to Newzoo, the UK generated in 2022 gaming consumer spending $5.5B (excluding hardware, b2b, gambling, taxes), which is almost a 3% of the
$184.4B worldwide revenue. So it's a too small sample to consider it a reference for the global numbers, specially considering UK traditionally has been one of the few more pro-Xbox countries than the average.
Yes, I talk about worldwide because UK is only a tiny portion of the global revenue/total market. I know CMA only regulates/considers their own market and its numbers instead of the global ones, see my reply just above.
Your personal opinion is not market trends, it's an irrelevant personal opinion, like mine.
And no, as far as I know there is no serious market analysis that expects exponential growth for cloud gaming. And wouldn't make sense because there are external reasons that blocks it. And on top of that, if we look at the market trend (their performace in the previous years) its growth hasn't been exponential and there isn't any recent or future super important change that woud skyrocket them.
There isn't even an expected exponential growth even for the game subs (where cloud gaming is only a portion of them).
Here's the most recent analysis I remember (optimistic but realistic because follows the trend of the previous years), where game subs are only expected to grow a 12% CAGR during the next 5 years, generating $17.9B in 2028. This is still under 10% of the current yearly total gaming revenue ($184.4B), which traditionally grows every year so in 2028 will be way higher.
This other market analysis, is older and more optimistic but still somewhat realistic. It says game subs generated $17.16 billion in 2021 and that will have a 2022 to 2031 12.9% CAGR, meaning they expect them to have the game subs generating $55.94B by 2031.
And well, there are many more in a similar fashion. Many estimating that game subs were a 7-9% of the total market and that in some years will grow to 15-16%.
As far as I know the only one that expects an unrealistic exponential growth for cloud gaming is maybe
this one that having estimated $1.4B in 2021, they forecasted $2.4B for 2022 and $8.2B for 2028:
The explanation of why they went too aparently optimistic and unrealistic, to the point that it doesn't match their own forecasts for the gaming market revenue. The explanation is that in this graph they are also counting other things such as business to business solutions for gamedev studios / corporations, not final consumers/gamers, as you can see here in other slide of their research:
Ampere also had
this other controversial market research, where claimed that GP was the market leader of game subs in the NA+EU market with a 60% market share,
(but it was because for some reason they didn't include PS Plus in the related chart).
According to Ampere (not the first time they are controversial), the game subs revenue generated around $3.5B in the western markets instead of the $1.4B worldwide claimed by Newzoo (even incuded there B2B and other stuff) and from that they made this crazy chart with their forecast:
It's Ampere, so it's hard to take them seriously, but even they mention there "Download distribution dominance is clearly illustrated by Ampere’s consumer research which asks Xbox Game Pass Ultimate users how they access their games (see
chart). Most usage is download-focused. As such, bucketing hybrid services such as Xbox Game Pass Ultimate and PlayStation Now into a cloud gaming market sizing is misleading and over-estimates the impact of this distribution technology in the near-term."
Cloud gaming isn't a nascent market, as I explained it's an over two decades old market that didn't have any important innovation in decades other than minor ones like tweaks to their codecs or gamepads to reduce a bit latency.
It's a small market that can't scale to go mainstream due to several constrains that the related companies can't address such as the laws of physics, related bandwidth and electricity costs, good internet connection quailty/prices/data caps/wifi and cable standards, and many more.
The market share of the one who buys and the one acquired for that market (gaming) is relevant.
In the same way that it's relevant how the acquired company impacts in the main gaming business (console market) of the direct competitor of the acquirer. Specially if you also want to estimate the potential impact that the acquisition on a very small subset of this market (cloud gaming market inside game sub market inside console gaming market).
MS is not a worldwide leader in any gaming market. They have an 'estimated (estimated by who knows who, but let's hope it's real) 60-70% cloud gaming market share' in UK, that's all. And the cloud gaming market is tiny and irrelevant, not nascent.
Maybe not to Teslas and bananas, but it's like saying that gamedevs listen music and since Sony has a good position in the music market it gives them an advantage on the gamedev market. It's something stupid and nonsensical.
Avoid insulting and crying, it only makes you look pathetic and embarassing.