xCloud holds the promise of allowing console gaming on other devices such as smartphones and tablets, but while the game streaming service already works on Android, Apple refuses to allow it on iOS. Microsoft has a workaround, though.
As Business Insider reports, Microsoft has apparently told its employees that xCloud on iOS will be offered as a browser-based experience. By taking this approach, Microsoft bypasses the need to go through Apple's App Store approval process. It's the same approach Amazon is taking to get its Luna cloud gaming service on to iOS.
Apple's argument against allowing xCloud in the App Store comes down to per-game approvals. The company states all games appearing for iOS and iPadOS in the App Store need to go through Apple's review process. As that can't happen for an app that allows lots of non-iOS games to be streamed, the xCloud app breaks the rules.
The browser-based version of xCloud for iOS is expected at some point in 2021. However, I expect Microsoft will keep communicating with Apple in a bid to get the rules relaxed so an xCloud app can feature in the App Store. It's also possible future antitrust probes may end up forcing Apple's hand in a bid to prove it isn't undermining competition.