I know A LOT of people here disagree with me but I really think MSFT can create a win-win scenario with this approach.
Looking at my active games right now on my Xbox and it's Jedi Survivor, Halo, Diablo 4, Control, FIFA, and Starfield (bleh). These games cost me $35 to play (Jedi Survivor was on sale), plus my monthly GP subscription. I think that is huge value and something that MS can build a long-term gaming business around (i.e., console/PC Box + Gamepass).
On the other hand, they are publishing/producing massive hits on Steam, Playstation, and soon Switch 2.
Pretty solid.