Microsoft still needs more studios to make Game Pass a “Netflix for Gaming” service. WoW and CoD and the rest of the ActiBlizz back catalog help but Microsoft still doesn’t have enough studios to be pumping out a new major release every month.
The idea of subscribing to get games (movies and TV shows) instead of buying to own them Netflix is certainly still doing. Constant, consistent revenue by having people subscribe instead of paying a bunch to market to them and hope it is a blockbuster, to me at least, seems far more sustainable for publishers and developers.