The cloud part makes sense. Microsoft own the Azure servers and buying up chunks of King (intentional or not) takes 250 million+ users from AWS and plops them on Azure. On top of that, Xcloud launched for mobile and has a streaming option and soon the One family of xbox consoles will become streaming only (with Series S following shortly behind).
If MS pick up AB (which also use AWS) they add another few hundred million users onto Azure and can lock large parts of gaming, or 3rd party deals, behind Azure.
We've already maybe seen a preview of this with the Azure & Sega partnership, which was announced back in early 2022. They announce that partnership, then "suddenly" a slew of Atlus games not only start coming to Game Pass Day 1, but MS gets marketing rights on Persona 5 Royal. We don't know how far this new partnership goes, but it wouldn't surprise me if MS have managed to get marketing rights for Persona 6 or get Persona 6 in Game Pass for a Day 1 release. A lot of people are going to say this is impossible, but at one point seeing MS try acquiring ABK was also thought impossible, yet here we are.
I'm not saying that is a "bad" thing MS is doing, either. It's just to show how they can leverage Azure growth in gaming with 3P devs & pubs to "trickle down" benefits for Xbox and Game Pass customers, because why wouldn't they? Also more of a reason why Sony need to partner with Google (IMO) to enable a robust cloud-ready development tools & support pipeline for 3P developers & publishers, rather than turning to Microsoft themselves as an Azure client. If they become dependent on Azure, they will NEVER be able to provide an optimal solution for extended cloud-powered hardware-agnostic software development pipelines to 3P partners, because Sony will be dependent on Microsoft for a cloud solution, while Microsoft is directly competing with Sony for those same 3P developers and publishers!
Plus at this point I think they could probably get a better sweetheart deal through Google than Microsoft; Google are in a position kind of similar to where Nvidia was with the Tegra chips, where Nintendo becoming a buyer was a godsend, essentially.
How long before:
"Oh man, Disney is such a good company, they would be so good in the console space, they own everything and would easily outsell Sony. They have more IP's than Sony, Sony wouldn't be able to compete with Disney!"
Disney aren't in the best place ATM to even think about jumping in as a platform holder. The MCU is tanking both commercially and critically, and Star Wars is struggling to regain relevance. The only genuinely big success they had last year was Avatar: Way of the Water, and most people look at that more as James Cameron's baby. Outside of that their only other recent big smash hit was Spiderman No Way Home, co-developed with Sony Pictures, so Disney/Marvel can't take anywhere near all the credit on that.
Luckily for them some of the games with their MCU characters are still doing well, especially the Insomniac ones. If the KOTOR Remake shapes up well, that is probably going to be the best shot for Star Wars to regain some real cultural relevance again. Disney's fortunes for LucasArts & Marvel for the next few years, IMO, actually hinge on games from specific outside companies they don't own. Who could've predicted that at the time of Endgame's release?
I don't think they realize that if regulators started cracking down on 3rd party deals, Xbox and Nintendo would get in trouble as well.
MS would practically be snitching on themselves in that scenario.
Especially if they went back to the 360 era :/