I do agree with the subscription cloud stuff ultimately being the future. And I get they are making position moves.I would say they're thinking past console gaming. Microsoft is thinking about putting xCloud boxes on TVs with no console attached and reaching people who don't even own a console by getting them to subscribe to a service.
There's one thing for sure with all the studio adds nobody else currently in the console space will be able to match what Game Pass will become. It's going to take another tech giant to compete with it. Google already left game development. Amazon seems to want to with Luna and them buying and creating studios.
Just if this is purely about forcing a portion of the market into their ecosystem, I'm not sure it will work.
I understand companies will make moves for marketshare over profit sometimes, like Amazon running on nothing just to take over the world.
To me it feels more like MS and Sony gaming ecosystems are starting to meld together than divide (im playing halo with my dual shock and god of war with my M/KB for instance). I'm wondering if we see a day with gamepass on sony consoles and sony's version of gamepass on PC's.
And the revenue comes from what each company offer on their respective service and not what hardware you play it on.