Streaming video games is a non-starter. OnLive and others have tried this and have failed. Why? Latency. The games are a laggy, stuttery mess.
Streamed games do not even work very well over wired gigabit ethernet on a LAN. This was why the Steam Link was recently on sale for $2. Because streaming games on a home network sucks balls. Good luck getting game streaming to work well over the internet.
Microsoft is going to fail hard if they go this route. This could be what finally knocks them out of the game console world.
The dumbasses used DDR3 for a GPU in their last console because none of them knew anything about PC hardware. Now they're trying another idea that any PC gamer can tell you will fail.