As part of the UK's Competition and Market Authority's (CMA) investigation into the Activision Blizzard take over, Vole wrote that cloud gaming was a "new and immature technology which the CMA has recognized faces significant challenges, particularly on mobile devices."
"Microsoft agree that in future cloud gaming services may mean that hardware distinctions will become less important. However, the reality is that today cloud gaming remains in its infancy and unproven as a consumer proposition."
Vole said that many technological limitations have been largely overcome. Yet, local rendering still provides the best and most consistent visual quality and the lowest input lag, which is particularly important for avid gamers.
"While this may grow, particularly on mobile devices, adoption is not expected to be rapid as it requires a significant change in consumer behaviour," Microsoft said.
"Gamers care about subject matter, storylines, graphical performance, speed (e.g., loading times and latencies), mechanics, game selection, and game cost. Streaming services therefore need to compete effectively with downloadable gaming options across these metrics if they are to grow."
Cloud game streaming services are not popular among consumers, and Microsoft says that it is not in its interest to harm competing for game streaming services or withhold popular Activision Blizzard games from rivals as it is interested in promoting cloud gaming in general.
"Consumer adoption of cloud gaming remains low," Microsoft said. "Harming or degrading rival services would significantly set-back adoption of this technology – protecting market-leading incumbents. Microsoft Xbox's incentive is to encourage the widespread adoption of cloud gaming technologies by as many providers as possible to encourage the major shift in consumer behaviour required for cloud gaming to succeed."