Ah yes, the technology that literally no one uses and half the world still needs to catch up on infrastructure-wise to support. The billion pound theoretical market is hilarious too, considering the biggest server provider, Google, came and went in the cloud market with a wet fart.
There's a time for appropriate clamping of anti-competitive behaviours in markets, and there is a time for common sense that is appropriate to the relevant markets. This just screams old people not knowing gaming listening to the ones not wanting it because they currently have the majority lead and favouring said leader. People pretending that this decision will force MS to be more competitive and fight against Sony through Sony's tactics are ignorant of the landscape right now.
You have the world leader in gaming getting massive gains because they are the leader, with concession in place due to popularity and ease of sales. How are you suppose to compete with that outside of first party games that now take longer to develop and cost more, all with the potential of your game not hitting big when it does come out? Heck, how are you suppose to compete third party wise when the other contender gets cheaper deals?
That's not how game development works. You don't just throw money at something to make it develop faster. That theory has been flawed ever since it was used as an excuse to console war.