Because video and video games are entirely different categories of things?It‘s a very double-edged sword to say the least.
While Microsoft seems to have done a decent job from a technological point, the reality is - and will prove to be for this services - that web apps for gaming are second-class citizens in the eco system. And Apple are again leveraging their power of being the App Store operator in an anticompetitive way to give their own service an edge over the competition for gaming subscription services.
Another way to look at it: How is this different from Netflix? Isn’t it basically just a video stream with some additional input controls? (and rather than only different audio languages and subtitles, a bit more dynamically generated video content?)
So why is Netflix allowed their own app in the store (that does allow for sign-up and subscriptions on non-Apple devices) and Microsoft isn‘t?
The reason seems obvious: Netflix has a dominant market position in online video streaming that that Apple can‘t (aren‘t willing to) ignore. And Apple themselves doesn‘t have a great position in streaming video on iOS.
Whereas they do control the market for gaming on iOS through they App Store walled garden - and try to shut down competition from game streaming services.
Because Apple has decided when it comes to video games on the iPhone each one needs to be individually reviewed and approved and allowing this service on the iPhone wouldn’t follow that model?
Because you don’t see Microsoft bending over backwards to offer Apples (or Sony’s, or Nintendos) competing services on the Xbox?
It’s not anti-competitive to not give your competitors an advantage against you, especially when they are certainly not returning the favor.
Microsoft has no inherent right to offer it’s games or services on the iPhone any more than Apple has an inherent right to offer it’s services on the xBox. Neither platform holds a monopoly position. Users can pick and choose which ones they prefer. Would it be convenient for the user if they could play all their games on one device? Sure. But convenience isn’t a right. As a consumer you have the choice of which, if any, gaming platforms to use based on your personal priorities.
It’s already insane that Apple has to bend as much as it does to allow competitors the access to the iPhone they have. Apple, more than Nintendo, Sony, OR Microsoft gives competitors far greater access to its platform. All three have released apps and games for iOS. Both Sony and Microsoft have released remote play solutions for iOS. So far the only example of the reverse is the AppleTV app for Xbox and PlayStation. No Apple Arcade app. No Apple Music app. Etc.
And you certainly can’t play Xbox games on PlayStation or vice versa, even through a streaming service. There’s no technical reason not to, it’s purely a business decision. And a perfectly valid one. Because they are competitors. Yet despite Apple also being a competitor THEY are expected to throw open their doors to the competition? That’s nuts!