I don't think this is inherently unreasonable, keeping in mind that gaming cafes are (perhaps quickly becoming a were) a thing, and in those you were usually provided some set of games that the center owned or licensed, but also allowed to log in via something like Steam and play your own games. Xbox / Consoles in general were already a walled garden compared to, say, GOG, and heading towards this streaming model being the default is only a step further in the obvious direction.

Maybe things are different now but I have never seen a single gaming cafe in my life where the games were "owned or licensed". We all know how they operated.