This doesn't even make sense. xcloud service is for streaming console/PC games on your mobile devices. The games don't exist as native mobile apps, and it's not a competitor for something like Apple Arcade. Apple's statement makes me wonder if they're that out of touch with understanding what these services even are, or if they're just trolling at this point. It's not much different than allowing something like Microsoft Remote Desktop Mobile on iOS, really. As long as they're not directly selling a subscription or the games in the app itself, why would it matter? It's just a wrapper that's showing a remote display.
I think Apple’s actions show that they know exactly what is at stake were they to allow game streaming apps onto their App Store.
They don’t want a scenario where a user goes into the App Store to download Stadia or xCloud, then proceeds to do all their gaming within said app, and never download another game from the App Store ever again.
In the long run, this just means more developers will focus on bringing their games to xCloud, and maybe even skip iOS, if that’s where the users end up being funnelled into. They don’t want an IE scenario where the only use for said browser is to download Chrome.
It doesn’t bode well for the viability and vitality of the App Store. Apple wants the App Store to be home to all the apps, where they also get to vet and control which apps are allowed or banned on their platform. Else, imagine if you next get an app streaming app which allows users to access apps that would normally never be allowed on iOS, such as gambling or bitcoin.
One can argue - but apps like Spotify and Netflix already exist. Exactly. Apple didn’t hop onto the music streaming bandwagon until much later when it became clear that was where the industry was headed. With TV+, Apple has so far resisted purchasing a back catalogue of shows, relying instead on a small stable of original content to draw users into the TV app where they will hopefully go on to subscribe to other channels or purchase additional iTunes content.
I think given a choice, Apple would rather users continue to purchase music individually, than the current buffet-style business model. Apple has thrived by controlling every aspect of their ecosystem, and they are not going to give up this control so easily.
So while xCloud may be similar to Netflix in terms of tech (ie: both are streaming content from a server somewhere), the implications and impact on the overall health of the App Store is something that I find has largely gone undiscussed.