While a move to Arm promises users with lighter and more efficient PC hardware, the state of PC gaming on Arm has a lot of catching up to do as the developer ecosystem remains in infancy.
Yet. But as all technology is continually developed, it will get there. I also have to wonder if the incompatibility is on Microsofts side or on the game developers side. Some games have incompatibility due to anticheat, is that because Windows on ARM doesn't support it or because the anticheat doesn't support ARM architecture?
Sadly because of the way gpu drivers are done by tweaking them to deal with the shit devs didn't optimise means it'll be on MS/SDs side to fix. Same reason why Intel Arc stumbled initially
It's in a state similar to Linux gaming, it depends on the game. It's potential is making Intel and AMD sweat, though. AMD is already designing ARM CPUs, but so is NVIDIA. It could be very good ... or very bad if they attempt to embrace, extend, and exploit with their own chips.
ARM gaming doesn't end well for ARM either. RISC-V is creeping up on their embedded market, and gradually appearing in dork-oriented laptops and twee low-end desktops.