Ever since the CMA blocked the merger for the Cloud SLC as a nascent market where innovation can flourish we have had - until the last two pages AFAIK - zero conversation about the types of innovation the CMA's cloud SLC represents, and I barely even scratched the surface - to refute that xcloud is running xbox OS and game console binaries "as-is" - and your discord channel brain trust narrative response is to say you are too dumb to understand.
Am I supposed to believe that?
Here's some innovation for you: DMA/DMCC style regulation/legislation that forces the triopoly of console manufacturers to open up their currently closed operating systems (Playstation OS, Xbox OS, Switch OS) to competing marketplaces,
and forces them to stop foreclosing their OS to competing cloud gaming providers.
If I want to start up a cloud gaming provider in the future here are my choices regarding base OS:
Windows - Wide Support - Not Foreclosed to Competitors
Linux - Patchy Support (proton exists but could run into licensing issues when commercialized) - Not Foreclosed to Competitors
MacOS - Near Zero Support - Not Foreclosed to Competitors
Playstation OS - Wide Support -
Foreclosed to Competitors
Xbox OS - Wide Support -
Foreclosed to Competitors
Switch OS - Patchy Support (currently not a delivery target for a noticeable number of upstream providers) -
Foreclosed to Competitors
The funny thing about that situation above is that literally nothing about it changes after the Activision/Blizzard - MSFT merger.
So, lets take your invented doomsday scenario into account: If I am the CMA, and I'm concerned about hypothetical future cloud gaming providers having options for base OS to combat a hypothetical future where DirectX is necessary to run a cloud gaming service the answer to me is clear. Blocking the ACTI/MSFT merger doesn't change anything about the situation so that doesn't work. But, what could work is using the upcoming DMA/DMCC legislation/regulation to force upstream providers to stop foreclosing their OS's to competing cloud gaming providers. In practice that would mean that Microsoft would be forced to license Xbox OS, and Sony would be forced to license Playstation OS, and Nintendo would be forced to license the Switch OS to competitors in the Cloud Streaming market. Problem solved. Now cloud gaming providers have viable options for backend Operating Systems, at least one of which would have very wide support for upstream inputs AND doesn't rely on DirectX (Playstation OS).