Well this is what they will want to tell us now, which is highly convenient when they've been spending so much time talking up their cloud offering (along with a few people here who shall not be named).
The reality is that things are indeed progressing in that space, it's probably the area that is being most invested in from an R&D perspective and Nvidia pretty much have a proof of concept out there that proves it can work under the right circumstances (proximity to the server, Internet connection, etc).
I'm not a fan and probably never will be. The most I'm willing to tolerate is in-home streaming but even that I'll avoid unless I have no other option (hence I now have 3 PC's + a steam deck + a PS5 spread across my home). But we need to remember, most people who post on a forum like this are hardcore gamers and will be more sensitive to things like latency and lag than public joe will be. We make up the minority of these companies' customers and public joe makes up the majority. The moment it catches on with public joe, that's the direction we are heading in and we are powerless to fight it, just as we have been with mobile gaming, GAAS and microtracsations/lootboxes.
Everything Microsoft are doing now is with both eyes firmly on the future. You don't propose to invest over 70 billion dollors on a division that has failed to make you money over the course of it's existence (net) unless you see a future where those investments will turn out to be highly lucrative (they also don't throw their toys out the pram in the way they have done since the CMA decision if it wasn't an imperative step from a strategic standpoint). How exactly do they envisage things becoming lucrative? They've been telling us this whole time - it's not console, it's cloud.
If given the opportunity to they will force us in that direction as quickly as they feasibly can. Hence when Phil Spencer mentioned "the acquisition of Activision Blizzard is meant to speed up Microsoft's gaming plans", that's very likely exactly what he was referring to. If we are forced in that direction then outside of owning what will become increasingly expensive and niche gaming hardware (because consoles will no longer be produced at scale, if at all) we will have very little choice but to accept it.
I take a very dim view of everything related to cloud because when I see these huge mega-corporations getting as excited and enthusiastic as they are about things like this it only ever spells trouble for us.