The FTC moves on to ask Nadella about cloud gaming and how it can be used on TVs. “Cloud streaming can essentially transcend any device but that’ll be one use case,” says Nadella.

I don’t think of it as strictly substitute for the console. I mean, at least the market feedback to date has been people love their consoles, people love their PCs, people love their phones and use cloud gaming as an adjunct.

Nadella says it’s “possible” for cloud gaming to become a breakthrough market, but that it’s not something that has happened yet.

Nadella says streaming is a “minor” part of his definition of cloud, which also includes Xbox Live:

Just to make sure that it’s clear. Whenever I think about the cloud in the context of the Xbox pillars of content, cloud, and community, Xbox Live is part of the cloud. So even when you’re thinking about a console or a PC, the cloud is actually very integral to the experience. So it’s not just streaming alone when I think about the cloud.