1. It's good that MS is bringing some of their games over to Nintendo
2. It's only bad if people will start to expect more of MS games to come over to Nintendo/other consoles (there are enough stupid entitled gamers our there)

Wisps is an amazing game, probably my GOTY thus far. The more people who can play it, the better. This will only be consequential for console warriors engaging in list warz

Short answer is it definitely isn't bad.  It might not be good either, but it definitely isn't bad.

Longer answer is that what Microsft really cares about is the PC platform.  Not as a gaming platform, but as an everything platform.  Anything that gets people using the PC more is what they want (gaming or not).  In fact, Microsoft is the PC platform.  They own it.  What brand makes something a PC?  HP or Dell or Acer or what?  It's Microsoft.  If it's running a Microsoft OS, then it's a PC.  Microsoft owns the PC platform.  

So on the gaming side their focus right now is on Gamepass and xCloud.  To Microsoft, their main competitor isn't Sony anymore.  It's Google and Stadia.  Why?  Because Google wants people on Android devices as much as possible and Microsoft wants people on the PC as much as possible.  This xCloud vs Stadia battle is just one part of the war over the whole internet, PC vs Andriod. 

So if Microsoft puts a game on the Switch, what do they care?  They don't really even care if Nintendo succeeds or not.  It's just a way to market their games.  "Hey if you like this come check out all of our stuff on Gamepass."  They don't care if Nintendo benefits, because they are competing with Google.  So, this definitely isn't a bad move.

Only reason I say this move might not be a good move either is that I doubt either xCloud/Gamepass or Stadia will get much traction from established gamers.  Anyone who games on Switch or PS4/PS5 is an established gamer.  I doubt many established gamers will mover over to cloud gaming.  If cloud gaming takes off it will be in areas where there isn't much of a console presence like India or Russia or all of the other countries without much of a console market.

So, to sum up what I already said, it won't hurt them, but it probably won't help them much either.

Wouldnt them putting all their games on the PC be considered more damaging...?

If Ryuzaki says something is a bad move for Nintendo and/or Microsoft, is probably a good move.

Simple.

Nintendo is an ally. They are not PlayStation. Therefore this changes nothing. Goodwill gestures like this will only strengthen the relationship the 2 companies have.

great thing switch owners get a great game to play. It's my favorite game release this yr so far

I believe you are wrong that established gamers will not use the cloud features of gamepass.  I was using it on my android phone using my xbox controller and I must say it worked very well. Actually it worked so well, that I can see myself taking my controller with me on trips with the family, picnics you name it.  Also being able to caste my screen to TVs when I travel gives even more incentive to use the cloud features.  It will be interesting to see how much reach gamepass will have for MS but I do agree with the first half of your post.

It's good move, to keep brand alive, i mean look, i supported PlayStation brand by buying Horizon Zero Dawn on Steam, not a huge loss for Microsoft and even Sony they need profits because 9th gen games are quite expensive to make, well that's that.

.......grrrr

This is a good move for everyone.

It's good for Microsoft; they make some extra money from additional software sales.

It's good for Nintendo; they get another highly rated game on the Switch.

It's good for gamers; more people now have access to what looks like a damn fine game.

Ori is hardly a tentpole system seller for Xbox, so it doesn't really hurt MS at all.