Earlier quoted context omitted.
To me this seems like xCloud is in response to Stadia. Google has the infrastructure and Microsoft and Sony need to work together to compete. This would be similar to how Microsoft and Sony responded to the Nintendo Wii.
Because Microsoft does not have the infrastructure? Azure has more DC and compute power around the world than Google Cloud.
Google built their game platform from the ground up for the cloud, including specialized graphics hardware. Sounds like it will be able to scale up to meet demands of games, while the other services are just renting a console-in-a-datacenter to the user.
Maybe it will matter, maybe it won't.