Fortnite isn't on Microsoft's Xbox Cloud Gaming service because

Epic Games isn’t putting Fortnite on Microsoft’s Xbox Cloud Gaming service because it views the platform as a competitor. An Epic Games executive has revealed why Fortnite isn’t on xCloud.

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Fortnite is not on Xbox Cloud Gaming due to competition with Epic PC offerings

Fortnite Isn't on Xbox Cloud Because Epic Apparently Doesn't Want it--But Why?