You've never provided a specific reason for why the app review requirement is different in the case of Microsoft's app. Is Microsoft selling functional use of an additional library of apps through their streaming app? Yes. What is your reasoning for why those apps are exempt from review? You can't argue that they aren't apps. You can't argue that Apple's policy doesn't require apps to be reviewed. You can't argue that Microsoft doesn't apply rules to apps sold on their own gaming consoles.
Yeah I like your distinction there between an app and content... /s
If Microsoft was trying to make xCloud work like Apple Arcade, then yes, they would be considered apps in the sense that you have to have them installed locally on your device and they run code locally on your device. xCloud is a streaming service pure and simple. To categorize each game you stream as an “app” just to fit the restrictions Apple has placed for “reader” apps is completely ridiculous and is the issue here. That’s the policy being argued here. Apps like Netflix and YouTube stream content from their servers and users interact with the content by the controls given to them within the app, which goes through the review process. I don’t understand how you and Apple think xCloud is any different. It’s accepting user input with the controls and functions within the app which goes through the review process and streaming the video. If they are going to apply the rules consistently across the board, then “reader” apps like Netflix, Amazon Prime, and every other streaming service should be taken down.
But hey, let’s go with your distinction of a game being an app. VNC allows me to remote into my computer from wherever I’m at. I can launch a game there or any kind of app I have on my computer without any scrutiny from Apple. What’s the difference with xCloud? It’s specifically geared towards video games. What did Apple come out with recently and probably had in the works when the policy was put in place? A game subscription service. Bad look.
And again, we might be missing something here. Maybe Microsoft is actually storing bits of code from the game locally like save data or game state, but we don’t know for sure. If that were the case, then yes, I would change my opinion on this issue in an instant. My whole point with this whole conversation has been the optics are not good for Apple when it seems that they are applying the rules differently in certain situations and this is the kind of thing they should look into during an anti-trust case, not commission rates for a service they provide.